The UK tech sector has experienced its first decline in firm incorporations since the pandemic, with 48,518 companies established in 2024, representing a 5% decrease from the previous year. Contributing factors include high inflation, rising interest rates, and reduced business confidence amidst a contracting economy. The Chancellor faces further challenges as corporation tax increases and more businesses are affected by National Insurance contribution changes. Regions such as Wales and the South West saw particularly significant drops, illustrating a broader trend of uncertainty within the tech industry in the UK.
"With weak economic growth, high interest rates and high inflation, and businesses set to bear the brunt of the Chancellor's tax rises, confidence among tech businesses is diminishing."
"The slowing tech sector will come as more tough news for the Chancellor... confidence among tech businesses is diminishing."
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