The Barclays Regional Investment Map, which provides insights into UK company funding and growth, reveals a continued surge in activity across the UK’s Industrial Strategy (IS8) sectors, which now account for 1.35 million active UK companies.
According to new analysis from Barclays Eagle Labs and Beauhurst, the UK’s IS8 sectors – Advanced Manufacturing, Clean Energy, Creative Industries, Digital & Technologies, Financial Services, Life Sciences, Professional & Business Services, and Defence – are powering ahead.
Wales emerged as the UK’s strongest performing growth region, and the only UK region to record growth in active company population in Q4, rising by 0.13 per cent to 178,000 companies.
The country also posted one of the largest increases in equity investment, with funding rising by 396 per cent. This increase was driven by a few larger fundraisings, meaning the percentage rise reflects growth from a low base. This growth was supported by strong activity in Digital & Technologies, where Welsh companies raised £11.7m, and in Creative Industries, a key contributor to Wales’ innovation ecosystem.
This strengthening pipeline of investment set the stage for an uplift in grant funding, driven by major public‑sector awards to organisations including Wrexham AFC – whose grants were directed specifically toward infrastructure and regeneration initiatives – and Cardiff‑based production company, Bad Wolf.
Abdul Qureshi, Head of Business Banking at Barclays, said:
“What we’re seeing is a clear divergence in the UK economy. 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. Supporting these sectors, alongside building broader SME confidence, with the right mix of finance, skills and long‑term policy certainty will be critical to unlocking broader growth across the economy.”
UK-wide the total number of companies operating in IS8 sectors expanded by 4.10 per cent. Overall, new incorporations fell by 14.4 per cent since Q3 – a pattern consistent with the typical slowdown in incorporations seen in Q4.
Equity investment into IS8 businesses also rose sharply, reaching £4.94 billion in Q4. This was a 27 per cent increase from Q3 despite a challenging national backdrop, in which total UK equity investment fell by 5.28 per cent to £5.58 billion.
Digital & Technologies remained the strongest IS8 performer, securing £3.06 billion in equity investment in Q4, followed by Professional & Business Services (£1.67bn) and Advanced Manufacturing (£1.15bn).
Equity investment into Digital & Technologies was highest in London (£2.15bn), followed by the North West (£353m), where a number of high-growth digital companies drove regional performance.
Although Defence attracted £215m of equity investment in Q4 – the lowest among IS8 sectors – the quarter marked a strong rebound, with investment rising by 195 per cent compared to Q3. While activity remained concentrated, with seven regions securing Defence investment, the overall uplift signals growing confidence in the sector. As the UK accelerates its efforts to scale defence innovation, this increase highlights Defence’s strengthening strategic relevance and its potential for broader regional expansion.
