The data also suggests many tech businesses are in a stronger position financially, with over half (57%) having less debt now compared to six months ago, while a quarter (25%) have the same amount. Less than one in five tech businesses (17%) said they now have more debt than six months ago.

Darren Griffin, tax director and head of media and technology in the North West at RSM UK, said: “The North West continues to be a hotbed for tech businesses and this data bodes well for the immediate future as we enter more certain times from an economic perspective. It is also supported by the number of tech incorporations we are seeing in the region, which remain at a positively consistent level to the prior year despite the recent economic landscape. However, the Q2 2024 figures highlighted that sustained growth in the sector has slowed noticeably, with a reduction in the number of new incorporations in the region dropping by 10% compared to the previous quarter. Whilst we’re keen to see if this is a consistent trend, the news of a more stable economy can only bode well for the sector and be one factor to encourage new tech start-ups.

“There will be a keen eye on the upcoming Budget announcements so that businesses at both the start-up and scale-up level can plan for the future with greater certainty, and measures do not discourage entrepreneurs’ from continuing to invest in new and existing tech businesses. An area that is particularly important to highlight from our recent research is that 44% of tech businesses want to see improvements to innovation reliefs in the Autumn Budget.”

He added: “Recent events in Liverpool, such as Slush’d, together with the upcoming Manchester Tech Festival, show that the tech sector is in a strong position to kick on and grasp the benefits that an improving economy can provide and encourage more talent into the region.”