The number of UK companies increased by 0.43 percent in the third quarter of 2025, reaching a total of 5.48 million, according to new analysis from Barclays Eagle Labs and Beauhurst. Of these, around one million businesses operate within the eight Industrial Strategy sectors (IS8), which include Advanced Manufacturing, Clean Energy, Creative Industries, Digital & Technologies, Financial Services, Life Sciences, Professional & Business Services, and Defence.
Equity investment in the UK rose sharply during this period. Total equity investment increased by 78.4 percent to £5.89 billion compared to earlier in the year. Nearly half of this activity was concentrated in IS8 sectors, with Digital and Technology leading at £2.37 billion through 628 deals—almost half of which were at the seed stage—followed by Professional and Business Services (£1.24 billion) and Financial Services (£986 million).
London continued to dominate regional investment with £3.92 billion raised overall. Scotland recorded the second-highest level of regional investment at £507 million—a nearly tenfold increase over previous periods—primarily due to a large transaction involving Fidra Energy’s Thorpe Marsh Battery Energy Storage System project.
Scotland also led clean energy investment across the UK with £450 million invested into clean energy companies during Q3 2025, ahead of London’s £121 million in this sector. The region is recognized as a major hub for university spinouts outside Cambridge, London, and Oxford; 339 spinouts were registered in Scotland during the quarter.
Other regions saw varying levels of equity investment across IS8 sectors:
- The South East reported notable activity in both Digital & Technology (£77.8m) and Professional & Business Services (£101m).
- The West Midlands attracted significant sums in Digital & Technology (£142m) and Professional & Business Services (£107m).
- Northern Ireland recorded smaller but consistent investments across several sectors.
Advanced Manufacturing posted fewer deals but had the highest average sum raised per company due to two substantial transactions in automotive and advanced manufacturing fields.
Defence remained smaller by company count but continued to draw targeted equity funding in areas with established Advanced Manufacturing and Technology clusters such as London (£65m), West Midlands (£35m), and South East (£4.3m).
Abdul Qureshi, Managing Director of Business Banking at Barclays said: “The government has set out a clear vision by identifying the IS8 sectors as priorities for UK growth. While our latest Regional Investment Map shows almost a fifth of all companies now operating in Industrial Strategy sectors, there is also sustained growth and investment in sectors across the board.
“The increase in equity investment, especially in Digital, Professional Services, and Clean Energy, demonstrates the UK’s appeal to investors and its capacity for innovation-led growth. Scotland’s performance is particularly impressive, underlining the importance of growth across all pockets of the UK in driving national progress.”
Business and Trade Secretary Peter Kyle stated: “The UK is a top investment destination, and this data shows the power of government and industry working together to drive economic growth into every part of the country, creating jobs and new opportunities for people as part of our Plan for Change.
“Unleashing the full potential of the UK’s nations and regions is at the heart of our modern Industrial Strategy, and we’re providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond.”
Barclays’ quarterly Regional Investment Map draws on data from Companies House as well as private sources such as Beauhurst to provide insight into company formation rates along with trends in grant funding (from both public/private sources) and completed equity rounds among private firms throughout Q3 2025.
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