Biz tax rises, inflation and high interest. Why fewer UK tech firms started in 2024

UK tech company incorporations fell 5% in 2024 to 48,518, the first decline since 2020, driven by weak economic growth, high inflation and interest rates, and rising taxes (corporation tax up to 25% for larger profits and higher employer National Insurance with a lower threshold). Wales experienced the steepest drop, while London declined 6% to 26,060. Despite government plans to use AI to boost productivity, business confidence remains low, and concerns persist about the influence of large tech firms over regulators and advisory bodies.