The UK’s core Industrial Strategy sectors are outperforming the wider economy, with equity investment into these high-growth industries rising 27 per cent to £4.94 billion in the final quarter of 2025.

According to the latest Barclays Regional Investment Map, the "IS8" sectors—which include Advanced Manufacturing, Digital & Technologies, and Life Sciences—now account for 1.35 million active companies. This 4.1 per cent expansion in sectoral population comes despite a 0.83 per cent decline in the total number of active UK businesses.

The data, compiled by Barclays Eagle Labs and Beauhurst, highlights a "clear divergence" in the British economy. While overall new company incorporations fell by 14.4 per cent since the third quarter—a dip attributed to seasonal trends—the Industrial Strategy sectors secured 88.5 per cent of all UK equity investment.

Regional performance and Northern growth

Digital & Technologies remained the dominant sector, attracting £3.06 billion nationally. While London remains the primary recipient of funding, the North West emerged as a significant secondary hub, securing £353 million in digital equity investment.

In Yorkshire and the Humber, the Digital & Technologies sector attracted £35.5 million, followed by £13.2 million in Professional & Business Services. Although the scale of investment in the North remains lower than in the capital, the figures underline the region's role in the UK's innovation-led recovery.
Sectoral rebounds

The Defence sector saw a notable recovery, with equity investment jumping 195 per cent compared to the previous quarter. Wales also marked a standout performance; it was the only UK region to record an increase in its active company population, supported by a 396 per cent rise in equity fundraising.

Many businesses remain cautious, but high growth, innovation led sectors continue to attract investment and expand at pace. That tells us two things: the UK remains a highly attractive place to build and scale ambitious businesses, and confidence follows opportunity.

Region	Digital & Technologies	Professional & Business Services	Advanced Manufacturing
London	£2.15bn	£1.32bn	£174m
South East	£208m	£85.7m	£909m
North West	£353m	£25.3m	-
West Midlands	£26.4m	£1.78m	£17.3m
East of England	£129m	£152m	£30.9m
Yorkshire & Humber	£35.5m	£13.2m	£4.40m
East Midlands	£4.61m	£5.95m	£2.00m
South West	£75.2m	£44.1m	£3.50m
Scotland	£41.0m	£6.69m	£2.43m
Wales	£11.7m	£2.63m	£6.05m
North East	£10.2m	£6.35m	£1.28m
Northern Ireland	£12.3m	£3.65m	£53.7k
UK Total	£3.06bn	£1.67bn	£1.15bn

To support businesses to invest for growth, the Barclays Business Prosperity Fund is available for new and existing Business Banking customers and UK Corporate Banking clients across the UK to apply for lending and refinancing on existing projects. Businesses can find out more at: home.barclays/businessprosperity, and view the full Regional Investment Map at home.barclays/insights/2026/03/Regional-Investment-Map-Q4.