The state of UK tech in 2026: polling from techUK and Public First
Securing the UK’s competitive edge in a global market
In 2025, techUK’s annual research pointed toward a sector defined by optimism. Despite global shocks, the UK has been seen as a premier destination to start and scale a business, with the new Government’s commitment to a growth agenda seen as a step in the right direction. One year on, the view has shifted. While the ambition of the UK’s business remains undimmed, a significant "confidence gap" has emerged between the Government's rhetoric and the reality of the UK’s operating environment.
The 2026 edition of our research, conducted by Public First, represents our most comprehensive study to date. By surveying 500 business leaders from both the technology sector and the wider economy, we have captured a unique snapshot of the UK’s industrial health. The findings reveal businesses are ready to invest and grow, but they are increasingly looking for more tangible proof that the UK Government remains committed to the growth agenda.
The stakes are high. While technology adoption is now universally recognised as the primary engine for growth, structural barriers are weighing on business confidence. As the UK navigates a turbulent global economy, this year’s results serve as both a warning and a roadmap for how to secure the UK’s competitive edge.
A growing disconnect on growth
Despite growth being a primary ambition for 37% of tech and 40% of non-tech businesses, there is a stark lack of faith in the government’s delivery. A staggering 84% of tech businesses and 95% of non-tech businesses are unconvinced that economic growth is a genuine priority for the UK government.
The current operating environment is cited as a major hurdle. Over half of tech firms (56%) and nearly three-quarters of non-tech firms (71%) describe the environment as "challenging" for expansion.
Tech is the engine for growth
The most encouraging takeaway from the data is the overwhelming conviction that technology is central to growth in the wider economy. No longer viewed as a siloed industry, the digital sector is seen as the backbone of UK recovery by almost everyone.
85% of non-tech businesses agree the digital sector plays a significant role in UK growth.
62% of non-tech businesses have identified the adoption of technologies like AI as a key priority for the coming years.
Polling suggests that view the tech sector and the UK economy are inextricably linked, with growth being underpinned by a reliance on technological innovation and adoption.
A warning sign
The research highlights a worrying trend: businesses are beginning to look elsewhere to realise their growth potential.
While 72% of tech businesses believe the UK sector can still outperform international competitors in Europe and North America, frustration with domestic barriers is driving a "move or lose" mentality:
45% of tech businesses have considered relocating investment or operations outside the UK.
38% of non-tech businesses have considered the same.
83% of tech firms are exploring international expansion in pursuit of more favourable growth markets.
What business needs
To turn the tide, business leaders have identified clear policy levers that would unlock investment. The message to Westminster is consistent across sectors: focus on the fundamentals of cost and regulation.
Top Policy Priorities:
Fiscal Reform: Reducing business taxes (52% non-tech, 40% tech).
Energy Costs: Addressing the high cost of power (46% non-tech, 37% tech).
Future Skills: Expanding AI training programmes to bridge the talent gap (27% non-tech, 35% tech).
Regulatory Agility: Simplifying regulation around emerging technologies to encourage "sandbox" innovation (27% non-tech, 30% tech).
The view from techUK
Antony Walker, Deputy CEO, techUK
"Tech and non-tech companies alike are optimistic about the potential for technology to drive growth. But they need to believe that government will play its part in creating the conditions for that to happen. The analysis has all been done – it's in the industrial strategy. What we need to see now is Government delivering on that plan. In a turbulent geopolitical world, it is more important than ever to stay focused on building an economy that’s fit for the future."
Notes:
techUK launched the findings of the polling at techUK’s Tech Policy Conference 2026, on Monday 16 March.
Fieldwork was undertaken by Public First. 256 UK Business decision-makers from non-tech businesses, 275 from tech businesses. 24th February- 6th March 2026. All results are weighted using Iterative Proportional Fitting, or 'Raking'.
Full results can be found here.
