Key Takeaway
The Barclays Business Prosperity Index reveals that UK companies prefer the domestic market for growth, benefiting from a strong customer base and market opportunities. New entrants cite access to a skilled talent pool and rapid tech adoption as key advantages over the US and Europe. Demand for AI is particularly high, with 95% of respondents noting increased interest, and half of tech firms planning to boost AI investments by at least 20%. While 76% feel the macroeconomic climate supports their business, 37% urge the government to enhance international investment efforts, and many seek more support for tech expansion.
The Barclays Business Prosperity Index reveals that UK-based companies predominantly prefer the domestic market as their primary area for growth.
With a strong customer base and plentiful market opportunities, the UK emerges as a top destination for tech-driven firms looking to expand their operations.
The report indicates that newcomers to the UK market highlight two key advantages over regions such as the US, APAC, and mainland Europe: exceptional access to a diverse, skilled talent pool and a notably swift pace in adopting technology products.
Demand for AI remains particularly robust. It shows that 95% of respondents indicate a growing appetite for AI goods and services within the UK, with half of the tech businesses surveyed planning to increase their AI product investment by at least 20% in the upcoming year.
The upward trend in AI spending shows no signs of slowing down, reinforcing predictions that UK spending on AI solutions could reach £1.8bn (US$2.43bn).
The index also indicates that 76% of respondents believe the current macroeconomic climate is positively impacting their business.
Nonetheless, there are clear calls for action, with 37% urging the government to take further steps to attract international investment.
Nearly half of businesses emphasize the necessity for increased support to expand tech operations across the country.
Helena Sans, Head of Technology, Media & Telecoms & Innovation Banking at Barclays UK Corporate Bank, states: “There’s a clear sense that the UK is maintaining its position on the global tech stage, with founders and leaders increasingly viewing the UK as one of the best places in the world to grow and scale.
