UK government to invest £1m in building out regional tech clusters

The UK government is investing £1m in accelerating the growth of regional tech clusters outside of London, in acknowledgement of the fact that “tech innovation does not stop at the M25”.

The roll-out of the Regional Tech Booster programme is being overseen by the Department for Science, Innovation and Technology (DSIT) and will see tech entrepreneurs based outside the capital offered access to mentoring, funding and skills development opportunities.

At the time of writing, no further details had been shared about how interested parties will go about applying for the programme, but DSIT said information on that will be announced later this year.

Specifically, DSIT said the programme is geared towards accelerating the growth of tech clusters and early-stage digital startups in areas such as Scotland and the north of England, as part of a push to close the innovation gap between London and the regional tech ecosystems in other parts of the UK.

Minister for tech and future digital economy Baroness Jones said the programme is being launched in acknowledgement of the fact that tech innovation is not just limited to London.

“Tech innovation doesn’t stop at the M25, and we’re choosing to invest in the talent and ideas flourishing across the UK,” she said.

The programme is the latest in a long line of initiatives the government has introduced as part of its Plan for Change, which consists of a series of economic milestones it wants to hit by the end of the current Parliament, continued Jones.

“This investment forms an important part of our Plan for Change to kickstart economic growth in every part of the UK. By supporting regional tech entrepreneurs, we’re creating the conditions for innovation and prosperity to flourish.”

The UK’s nations and regions are home to a diverse and growing network of tech ecosystems. They already make a vital contribution to the economy, and with the right support, they can do even more

The initiative also ties into other regional development schemes the government has introduced since coming to power in July 2024, including its AI growth zones buildout plan, which will see high-performance compute facilities built in various corners of the UK in support of the government’s wider AI ambitions.

Katie Gallagher, chair of the UK Tech Cluster Group (UKTCG), which is a network of regional tech organisations focused on fostering growth across the UK, said her organisation has been selected to participate in the Regional Tech Booster pilot programme.

As such, the UKTCG will support the government in ensuring the programme delivers sustainable benefits that continue beyond the initial £1m funding period, and will work with industry, academic institutions and local tech leaders on its delivery.

“We’re pleased that DSIT has selected the UK Tech Cluster Group to pilot a new approach. This programme will focus on collaboration, connecting clusters, sharing best practice, supporting founders and entrepreneurs, and creating a practical playbook for building strong, sustainable regional tech economies,” said Gallagher.

She also expanded on the reasons why the programme is needed and why it is so important for tech entrepreneurs based beyond London and the south-east to get a leg-up.

“The UK’s nations and regions are home to a diverse and growing network of tech ecosystems. They already make a vital contribution to the economy, and with the right support, they can do even more,” she added.

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