London's Digital Industry

London is becoming a global force to be reckoned with and the digital sector has been driving the capital’s economy:

London’s Digital Employment

Support Programmes

If you would like to have more insight on the London’s digital industry, check out the dedicated page on our site.

The UK's Digital Industry

Tech Nation 2016 is the most comprehensive analysis of the UK’s Digital Tech Economy to date, showing how the Digital Tech Industries are driving economic growth, employment and regional development:

  • The UK’s Digital Tech Industries are growing 32% faster than the rest of the UK economy (in turnover)

  • The estimated turnover of UK digital tech industries reached £161bn in 2014

  • The Digital Tech Industries are creating employment opportunities and accounting for 1.56M jobs across the UK

  • The UK’s increasingly diverse range of digital skills and specialisms are also now thriving beyond the tech sector – 41% of Digital Tech Economy jobs exist in what are thought of as traditionally non-digital industries – such as the public sector and financial services

  • Over 80% of Tech Nation clusters have seen growth in digital turnover, jobs and advertised digital salaries




Tech Nation 2016 features 27 thriving tech clusters across the UK: Belfast, Birmingham, Bournemouth & Poole, Brighton, Bristol & Bath, Cambridge, Cardiff & SwanseaDundee, Edinburgh, Exeter & Newton AbbotGlasgowHullLeedsLiverpoolLondonManchesterNewcastle & Durham, Norwich, Oxford, Reading & Bracknell, Sheffield & Rotherham, SouthamptonSouth WalesSunderlandTruro, Redruth & Camborne and Worcester & Malvern.


UK Tech Investment


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UK Digital Employment

  • Tech Nation shows that the 1.46 million figure of people employed by digital companies in the UK is set to grow by 5.4% by 2020, which is higher than projected total job growth
  • Startup activity in the UK is set to create of 20,000 new jobs across the country in 2015
  • In the last 35 years, two of the top ten fastest growing UK occupations have been in the technology sector. IT managers employed in the UK has risen by a factor  of 6.5, to over 327,000. This is coupled with the rise of programmers and software developers by a factor of three, to more than 274,000.
  • The UK has one of the best talent pools in Europe, with four of the world’s top six universities. Our 170 universities and other higher education institutions create the highest number of graduates in Western Europe

Unicorns – $1bn dollar valuations (GP BullHound data, 2015):

  • 43% of all European Unicorns are based in the UK – 17 of the 40 European tech companies that have achieved IPO or been valued at $1bn or more started in the UK – 8 in the fintech sector
  • ASOS, JustEat, Skrill, Wonga, Zoopla, Farfetch, Transferwise, Shazam, Funding Circle, Markit Group, Ve Interactive, Powa and Rightmove
  • Outside of London,, FanDuel, PokerStars and SkyScanner
  • The number of unicorns across the European region has grown 33% from the same time last year, up from 30 to 40 companies, making 2014 the most successful year since 2000

Looking Ahead

Digital Business Academy

  • Getting people skilled in the sector via online courses and rewards such as apprenticeships, internships and mentorship.
  • More than 20,000 UK signups (launched in November 2014) and 12,000+ in training
  • 11 online free courses provided by Tech City UK, Cambridge University Judge Business School, UCL, Founder Centric and Valuable Content

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Tax Benefits

The Government offers tax benefits for investors in early stage digital businesses:

  • The rate of R&D tax credit for companies with fewer than 500 employees has been increased to 225%
  • The Patent Box Scheme which lowers Corporation Tax to 10% on profits from the development and exploitation of patents and certain other intellectual property in the UK has been introduced
  • The Seed Enterprise Investment Scheme (SEIS) provides 50% income tax relief for UK taxpayers investing in qualifying startups for the first £100,000 seed investment
  • The Enterprise Investment Scheme (EIS) offers 30% income tax relief for private investors – bringing the scheme in line with the relief available in contributions into venture capital trusts
Data and Stats

There is a wealth of information highlighting why the UK’s digital industry is thriving. We aim to help you find this information quickly and easily.

Here’s a list of useful data and stats which show why the UK’s digital economy is in such good health, making the UK the ideal place to build and grow a digital business.