techUK’s Local Digital Index 2025

techUK is delighted to publish the 2025 edition of our Local Digital Index. This is the fifth edition of the Index and provides updated data, new insights and a more user-friendly set of maps to help all those using the tool to inform their work and support decision making.

What do the 2025 Local Digital Index findings show?

The tech sector is now contributing £101billion in Gross Value Added (GVA), employing around 1.7m people and has a 3-year projected growth of 8.9%. The sector continues to host world classes companies, digital economies and local ecosystems in London, Oxford and Cambridge but also in Edinburgh, Manchester and Bristol.

Releasing the findings, techUK called for urgent UK Government action to ensure that regional economies can attract investment, connect businesses, and develop the skills that will define the UK’s digital future. It’s clear that there have, and are, success stories but also challenges. The UK’s tech sector and digital economy isn’t immune from the wider economic situation, and the UK government must help grow the sector by backing those who can help grow the economy.

techUK’s Index and report notes that: 

  • Overall growth for the digital sector has forecast of 8.9%, above the UK average. However, the projected rate has decreased slightly since last year’s index.   
  • London, Oxford, and Cambridge (the Golden Triangle) still account for a disproportionate share of digital investment. 
  • Gigabit broadband coverage has risen sharply since 2020, from 27.7% to well over 90% in the West Midlands
  • 5G coverage across the North West has now reached 79.1%, using better technology to improve upon the 82.5% for 4G recorded in 2022. 
  • STEM job demand is highest in Greater Manchester, however, digital graduates are most concentrated in Westminster, Camden, Birmingham, Nottingham, and Manchester. 
  • Wales leads the UK for local government ICT spend with SMEs, showing how procurement can boost local tech ecosystems.

Recommendations

Our recommendations to the UK Government are:

  • Catalyse regional investment: Expand investment funds, improve investor engagement, and strengthen innovation finance beyond the South East.
  • Accelerate digital infrastructure: Fully fund broadband and 5G rollout, provide business rates relief, and improve mapping of commercial connectivity.
  • Align skills with demand: Reform the skills levy for flexible training, empower local governments to invest in inclusion, and leverage universities as regional skills hubs.

Dive deeper 

techUK’s Local Digital Index 2025

This Index has been created to understand how all regions of the UK can benefit from this success.

Read the full Index here

Scotland offers enormous opportunities to drive UK-wide economic growth through innovation - from deep research capabilities at our world-leading universities to a strong track record in strategic sectors like life sciences and advanced manufacturing and an expanding ecosystem of innovative and enterprising start-ups.

The Scottish Government continues to stand square behind our technology sector to ensure we capitalise on these opportunities, drive investment and create jobs – and I wholeheartedly agree with techUK’s assessment that the skills, talents and opportunities that lie across the UK must be supported strategically and equitably.

Kate Forbes

Deputy First Minister

This report is available to everyone. Log in or sign up for free to download the full report.

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This report is available to everyone. Log in or sign up for free to download the full report.

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We hope you find the report insightful, and encourage you to get in contact with the team regarding any questions.

Matt Robinson

Matt Robinson

Head of Nations and Regions, techUK

Stephanie Barr

Stephanie Barr

Programme Manager, SME Engagement and Nations & Regions, techUK

Luke Newcombe

Luke Newcombe

Programme Manager – Local Public Services and Nations and Regions, techUK

Fran Richiusa

Fran Richiusa

Programme Team Assistant for Public Sector Markets, techUK


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Meet the team 

Matt Robinson

Matt Robinson

Head of Nations and Regions, techUK

Stephanie Barr

Stephanie Barr

Programme Manager, SME Engagement and Nations & Regions, techUK

Luke Newcombe

Luke Newcombe

Programme Manager – Local Public Services and Nations and Regions, techUK

Fran Richiusa

Fran Richiusa

Programme Team Assistant for Public Sector Markets, techUK