Barclays Regional Investment Map: UK Industrial Strategy sectors drive company growth and investment in Q3
The Barclays Regional Investment Map, which provides insights into UK company funding and growth, reveals an increase in new business registrations across the UK in Q3 2025.
According to the analysis by Barclays Eagle Labs and Beauhurst the number of active UK companies has risen to 5.48 million – a 0.43% increase from the previous quarter. An estimated 1.05 million of these companies are operating within the key IS8 sectors, meaning almost a fifth (19.2%) of all UK corporations are aligned with this key long-term focus area for the government.
Industrial strategy sectors power regional growth
The UK’s IS8 sectors – Advanced Manufacturing, Clean Energy, Creative Industries, Digital & Technologies, Financial Services, Life Sciences, Professional & Business Services, and Defence – remain a priority to boost national growth, productivity and innovation.
In Q3 2025, these sectors collectively attracted £3.90bn in equity Investment, led by Digital and Technology (£2.37bn), Professional and Business Services (£1.24bn), and Financial Services (£986m). Together, these sectors accounted for almost half (47.7%) of total UK equity investment activity this quarter.
Key IS8 sector equity investment by region, Q3 2025 | |||
Region | Digital & Technology | Professional & Business Services | Financial Services |
London | £1.77b | £843m | £854m |
South East | £77.8m | £101m | £50.1m |
North West | £95.5m | £11.2m | £35.5m |
West Midlands | £142m | £107m | £13.3m |
East of England | £128m | £58.8m | £10.6m |
Yorkshire & Humber | £13.2m | £7.23m | £8.60m |
East Midlands | £4.69m | £3.58m | £1.62m |
South West | £95.6m | £90.9m | £12.3m |
Scotland | £36.5m | £5.84m | – |
Wales | £2.72m | £3.21m | – |
North East | £4.72m | £5.62m | £40.0k |
Northern Ireland | £4.67m | £7.69m | £285k |
UK Total | £2.37b | £1.24b | £986m |
Scotland leads regional investment outside of London
Equity investment across the UK rose sharply in Q3 2025, increasing 78.4% to £5.89bn. This marks a significant increase following a slower first half of the year and indicates a steady increase in investor confidence. The Digital and Technology sector remained the largest single driver of equity investment, attracting £2.37bn via 628 deals, with nearly half (47.5%) at the seed stage. Advanced Manufacturing, though smaller in company numbers, recorded the highest average sum raised per company, including two large deals in automotive and advanced manufacturing.
Scotland stood out for its growth in equity investment, rising almost tenfold (675%) to £507m. This was dominated by a single transaction by Fidra Energy, which raised £445m to deliver the Thorpe Marsh Battery Energy Storage System. Scotland also led the UK in Clean Energy investment, with £450m invested into clean energy companies, followed by London with £121m. This surge highlights Scotland’s growing role in the UK’s energy transition and its ability to attract large-scale capital for innovative projects.
Scotland is also the largest hub for university spinouts outside of the Golden Triangle (Cambridge, London and Oxford), with 339 spinouts recorded in Q3 2025, demonstrating its strength in translating research and innovation into high-growth businesses.
While Defence remains a smaller sector by company count, it continues to attract targeted equity investment, particularly in regions with strong Advanced Manufacturing and Technology clusters. London (£65m), West Midlands (£35m), and South East (£4.3m) all recorded notable Defence equity investment alongside significant activity in Advanced Manufacturing and Digital Technologies.
Abdul Qureshi, MD, 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 said: “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.”