Start-ups facing overseas threats

The UK is at risk of becoming an “incubator economy” as tech start-ups are increasingly being acquired by international competitors, warns Universities UK.

If you already have a business in the UK and were thinking of expanding overseas, it seems now is not a good time.

The analysis by Universities UK (UUK) predicts that with adequate support, around 27,000 new start-ups could emerge by 2028, generating a turnover of approximately £10.8bn.

City forecasters have also revised their inflation expectations upwards while cutting growth forecasts for the UK economy. The average GDP growth forecast for this year has been lowered to just 1%, down from 1.1% in February. The OECD has also reduced its 2025 growth forecast from 1.7% to 1.4%.

So it’s steady as she goes for the time being, but it remains to be seen what Rachel Reeves’ Spring Statement says later this week.