Thames Valley: Reading is top for tech in UK, finds KPMG survey
Reading has the highest concentration of technology companies compared to the rest of the country, according to the latest KPMG/Markit Tech Monitor UK Survey. Tech sector enterprise concentration in the town is almost three times the UK-wide figure (22% compared with 8%), followed by neighbouring Wokingham and Slough.
Barry Carter, KPMG’s head of TMT for the Thames Valley, commented: “Reading continues to attract skilled labour and investment in tech thanks to the town’s communication links with the rest of the country, its proximity to London, and cheaper land prices than nearby London.
“Like the rest of the country, Reading’s tech companies are optimistic about future growth and are continuing to create jobs. However, businesses in the town shouldn’t be complacent; growth in the tech sector in Reading hasn’t happened at the same speed as other parts of the country over the past year.”
Growth in the South East as a whole was half the rate of that in London (24.2% compared to 54.6%). Reading doesn’t feature in the top 30 areas for fastest growth.
Carter added: “Now more than ever, I would urge companies to invest in new products, expand into new sectors and invest in sales staff. It’s important that local government prioritises tech in the area, and focuses on key issues such as STEM subject education, investment in regional infrastructure including broadband and an adequate regulatory framework.
“The tech industry in Reading will face fierce competition next year from fast-growing tech clusters in other parts of the country.”
Nationally, the number of tech-related enterprises in the UK private sector has risen by 31% since 2010. This represents a net gain of approximately 45,000 enterprises over a five-year period, or one additional tech sector enterprise every hour of the day for the past five years. The growth of tech sector enterprises is double that of all private sector enterprises over the same period (16%).
Top tech sector enterprise clusters in 2015:
- 1) Reading 22% (% of tech enterprises out of all businesses in the area)
- 2) Wokingham 21%
- 3) Slough 19%
- 4) Hounslow 18%
- 5) Milton Keynes 17%
