The UK's Digital Industry

Tech Nation 2017 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 has 1.64 million digital tech jobs. The growth rate of digital jobs was more than double that of non-digital jobs between 2011 – 2015.
  • The digital economy is growing 50% faster than the wider economy.
  • In 2015, the turnover of digital tech industries was £170 billion, up by 22% in five years.
  • The economic output (GVA) of the digital tech industries is £97 billion.
  • The average advertised digital salary in the UK is £50,663 – 44% higher than the average non-digital salary.
  • In 2016, 68% of digital tech investment (over £4.6 billion), was recorded outside of the capital, testifying to a diversifying investment landscape.
  • Digital tech workers are helping to boost UK productivity. The GVA of a digital tech worker is more than twice that of a non-digital worker at £103,000 compared to £50,000.
  • More than 50% of digital tech businesses told us that talent supply is their number one growth challenge.
  • Thirteen percent of digital tech employees in the UK are from abroad, this rises to 31% in London and the South East.
  • Tech Nation 2017 features 30 thriving tech clusters across the UK: Belfast, Birmingham, Bournemouth & Poole, Brighton, Bristol & Bath, Cambridge, Cardiff & Swansea, Dundee, Edinburgh, Exeter, Glasgow, Hull, Ipswich, Leeds, Leicester, Liverpool, London, Manchester, Middlesbrough, Newcastle, Norwich, Nottingham, Oxford,Plymouth, Reading, Sheffield, Southampton, Sunderland, Truro & Redruth and Worcester & Malvern.
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.

    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 has been ranked number one city in Europe for supporting both startups and scale-ups in the European Digital City Index
    • London-based tech companies raised a total of 2.2$bn in 2016, eclipsing the $1.3 billion for the total amount raised in 2014
    • More than one third of Europe’s unicorns ($1bn valued businesses) are based in the capital
    • Just seven years after the launch of Tech City, venture capital into London is now 16 times higher than in 2010
    • In 2015, more than 300,000 people were employed in digital tech jobs in London, more than any other city in the UK
    • A new tech company is started in London every hour

    For more detailed data on London, and other UK clusters, visit our Tech Nation insights website.