The UK’s tech industry is doing very well and is becoming more and more appealing to global companies that want to grow. The United Kingdom is a great place for tech companies to grow because it has a strong economy, a highly skilled workforce, and government-backed programs.
What’s interesting is that it’s not just London that stands out anymore; many other cities are becoming tech hubs, and each one brings something special to the table. If you’re considering where to plant your flag, this guide will take you through some of the best UK cities for tech companies looking to expand and thrive.
Best UK Cities for Tech Companies that Want to Grow
1. London
When it comes to tech in the UK, London is without a doubt the top. It is the biggest tech hub in Europe and is home to thousands of startups, small businesses, and big tech companies from around the world.
The city attracts billions in venture capital. According to Tech Nation, a 2023 report says that 35% of all UK tech investment went to London. In 2024, London received a record £5.3 billion in tech investments, representing over 50% of the UK’s total tech investment. This makes it easy for new and growing companies to have chances to invest and get funds. Every year, more than 600 tech-related events happen there, including big conferences like London Tech Week. These events encourage people to work together and come up with new ideas, which strengthens London’s place as a world leader in tech development.
Areas like Shoreditch (Silicon Roundabout) and Canary Wharf favor fintech, AI, and cybersecurity companies. Its fintech industry alone is worth more than £11 billion, showing how important the city is as per financial technology.
However, life in London is quite expensive despite its benefits. This makes it harder to keep employees and operational budgets in check. Office prices are about £75 per square foot. It is the most pricey place in the UK to rent an office.
2. Manchester
Unlike London, Manchester’s cost of living is more reasonable. Renting an office in Manchester will save 60% compared to if it were in London. Also, tech pay here is 25% less, therefore businesses may scale without going broke.
The city’s tech sector has been booming, with big names like IBM. In fact, tech investment in Manchester grew by 42% in 2024, showing how strong the city’s tech ecosystem is.
It’s home to over 250 creative and tech companies, including media brands like the BBC, ITV, and Ericsson. Manchester has a good balance of established and start-up tech firms.
3. Edinburgh
Edinburgh, the capital of Scotland, is known to have strong government support from organizations like Scottish Enterprise. This enterprise offers various grants, funding opportunities, and support programs to encourage tech companies to set up and grow in Edinburgh.
There are a number of shared office spaces in the city, and CodeBase, the biggest digital incubator in the United Kingdom, is located there. Edinburgh provides tech job seekers with a decent standard of living and job satisfaction, with an average tech income of £52,639.
4. Bristol
Over 60,000 people work in tech in Bristol, a city recognized for its expertise in robotics, aerospace technology, and cybersecurity. With companies like Graphcore, the city has a growing AI and ML community.
The area advertises data management, software, EdTech, and analytics jobs and has an average tech salary of £52,500. With SETsquared, Europe’s leading business incubator, Bristol ranks 3rd in the UK for tech startup growth, with a 30% increase in new startups since 2020.
5. Birmingham
Birmingham is in the center of the country, which makes it a great place for businesses that want to reach customers in both the north and the south. The city is easy to get to from anywhere in the UK qualifying it as one of the best cities for tech companies.
In 2024, the city got £200 million from the government for digital infrastructure and tech innovation, which sped up the growth of its tech industry. In Birmingham, the tech sector has grown by 20% in the last two years.
If you’re considering setting up a new office, it’s important you are aware of how to open a branch office in UK. You can choose from a number of places in the UK. Tech companies that want to grow can choose from a number of places in the UK. Each city has its own benefits, whether you like London’s global reach or Manchester’s low cost of living. Your tech company can be successful in the UK market for a long time if you pick the right location based on your business and field.
