Silicon Roundabout's growth outpacing Silicon Valley

IT business creation in the UK is at the highest level since recession, research shows

The UK IT sector is booming so much that in some parts of London, growth is outpacing that of Silicon Valley, research claims.

Accountancy provider Nixon Williams claims that there are now 154,756 active IT enterprises in the UK, up 7.9 per cent on last year. The rate of new business creation in the sector is at its highest level since 2008, it added.

Demand for IT workers is also on the up, with 24,000 new IT jobs created in the last 12 months - up 5.2 per cent annually. By comparison, in the financial services sector - which Nixon Williams claims often competes with tech for top talent - the number of jobs fell 21 per cent over the same period.

Daniel Knowles, practice manager at Nixon Williams, said the London tech scene is giving Silicon Valley a run for its money.

"The UK tech sector continues to flourish, driving economic growth and providing a leading role in job creation," he said. "By some estimates, the tech hub around London's Silicon Roundabout is outpacing Silicon Valley for growth, and this is being closely matched by the rate of digital start-ups in regional tech clusters, such as in Liverpool and Manchester."