London’s tech businesses contributed £56 billion in turnover last year

London’s tech businesses contributed £56 billion in turnover in 2016, with a rise of 106 per cent in the past five years, according to Tech City UK’s Tech Nation 2017 report.

The report also showed that wage growth in the UK’s tech sector has continued to rise, increasing by 13 per cent since 2012.

High

The report showed that investment in the UK’s tech sector also reached a high last year, with £6.8 billion being invested into the sector, more than any other country in Europe. London’s businesses in particular outperformed other European cities in 2016, attracting £2.2 billion investment from venture capitalists.

Sunderland was close behind London for the highest rate of growth in digital turnover at 101 per cent, followed by Bristol and Bath, which both saw a growth of 87 per cent, and Edinburgh with a growth of 83 per cent.

Over 1.6 billion people now work in the digital technology sector, with a new technology company being formed every hour last year.

Significant

Commenting on the report, Tech City UK CEO, Gerard Grech, said that it shows that the country’s “tech innovation” and “productivity” are gathering momentum, with hubs across the UK experiencing a wave of digital investment and job creation.

“There are now significant tech hubs all over the UK, attracting both international investment and overseas talent,” he said.

He added: “Tech careers now pay 44 per cent more than the national average wage. These foundations will be crucial as we prepare to leave the EU. We need to maintain access to skilled workers while doubling down on home grown tech talent.”

To read other stories about business, accountancy, finance and entrepreneurship, visit the LSBF blog.