11 Sep 2026
by Edward Emerson

ONS statistics prove tech is driving UK growth

Latest GDP figures (11 September) show that the tech sector is continuing to drive the UK's growth. Ahead of the Budget, techUK is calling on the Chancellor to double down on tech adoption.

Latest figures from the Office for National Statistics (ONS) show that the UK economy grew unexpectedly by 0.4% in July, and by 0.4% in the three months to July, the eighth consecutive three-month expansion and notably higher than previous analysis from Reuters which had predicted a zero growth rate.  

This was driven by the UK's strong services sector, with output rising 0.6% across the three months. Within services, information and communication rose 2.5%, driven by growth of 4.4% in computer programming, consultancy and related activities. On the month alone, computer programming grew 3.5% and added 0.12 percentage points to GDP - close to a third of July's total growth from a single subsector. 

The ONS made a further observation worth noting: among the businesses reporting the largest turnover in computer programming, consultancy and information services, many are working in AI and cloud computing, though the figures note that it remains difficult to track the impact of AI in isolation across the economy.  

Investment 

The more interesting signal sits on the investment side. Spending on plant and machinery reached £22.1 billion in Q2 2026, close to a record, with ICT equipment and computer hardware among the main contributors. Information and communication delivered almost half of the quarter's growth, following computer programming expansion of 3.7% in Q2 and 3.8% in Q1. 

This all points to the fact that IT spending has become a meaningful driver of business investment, with AI's footprint now visible well beyond the tech sector itself. This is good news and represents precisely the kind of productivity-enhancing capital spending the UK has lacked.  

Looking ahead 

Whilst good news, it is clear that there is more work to be done if the UK is to return to long-term sustainable growth. In our submission to HM Treasury ahead of the Autumn Budget, techUK argued that more remains to be done to truly unlock the potential of the tech sector and the wider economy, including on high energy costs, lowering the cost of hiring, and supporting wider tech adoption and the enhanced productivity potential that comes with it.  

This is vital - the value of the tech sector matters to the whole economy. Our polling with Public First in March this year of both tech and non-tech businesses found that businesses overwhelmingly see the tech sector as a central driver of this growth. Over three quarters of respondents (85% of non-tech, 91% tech) said that the technology & digital sector plays a significant or vital role in UK growth, with 62% of non-tech businesses treating AI adoption as a priority. 

At the Budget, the Chancellor has an opportunity to prove that he is serious about growth, taking the momentum from these figures and turning it into considered action that ensures the UK continues to grow, with the tech sector leading the way.


Edward Emerson

Edward Emerson

Head of Digital Economy, techUK


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Head of Digital Economy, techUK

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Authors

 Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.

He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.

Email:[email protected]
 
LinkedIn:https://www.linkedin.com/in/edward-emerson-009189183

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