Technology investment has become one of the defining characteristics of successful UK businesses. From cloud infrastructure and cybersecurity to AI-enabled hardware and communications systems, organisations are continuing to invest despite ongoing economic uncertainty.
At the same time, how businesses fund these investments is changing. Preserving working capital has become a priority, encouraging more organisations to spread the cost of technology rather than relying solely on upfront purchases.
This report brings together data from government departments, the Office for National Statistics (ONS), the Finance & Leasing Association (FLA) and other recognised industry sources to provide an overview of the UK’s technology investment landscape.
Whether you are an IT reseller, managed service provider, telecoms supplier or technology manufacturer, understanding these trends can help you align your sales strategy with changing customer behaviour.
Technology Investment at a Glance
The UK’s appetite for technology investment remains strong despite wider economic pressures.
Among the most significant findings are:
- FLA members provided £40 billion of finance to UK businesses and the public sector during 2025.
- More than one-third of all UK investment in machinery, equipment and purchased software was funded by FLA members.
- UK business investment increased by 0.9% during the first quarter of 2026.
- Overall, UK investment is now 1.6% higher than a year earlier, indicating continued confidence in capital expenditure.
- 86% of UK businesses now handle digitised data as part of their operations.
- Asset finance lending to SMEs continues to grow throughout 2026, demonstrating sustained demand for flexible funding solutions.
Taken together, these figures show that investment has not slowed. Instead, businesses are becoming more selective about how they finance growth.
Technology Investment Statistics
| Statistic | Latest Figure |
| Finance provided to UK businesses by FLA members | £40 billion |
| Share of UK machinery, equipment and software investment funded by FLA members | Over 33% |
| UK business investment growth (Q1 2026) | +0.9% |
| UK total investment growth (Q1 2026) | +0.4% |
| Annual increase in total UK investment | +1.6% |
| UK businesses handling digital data | 86% |
| SMEs using asset finance (April 2026) | +8% year-on-year growth |
Sources: Finance & Leasing Association, Office for National Statistics, UK Business Data Survey.
Technology Investment Continues Despite Economic Pressure
Many businesses entered 2026 expecting UK technology investment decisions to slow due to inflation, interest rates, and cautious spending.
The data suggests something different.
According to the Office for National Statistics, business investment increased during the first quarter of 2026, while total UK investment also moved higher compared with the previous quarter. Annual investment is now comfortably above 2025 levels.
Rather than cancelling projects, many organisations are delaying large capital purchases or choosing funding models that preserve cash flow.
This reflects a wider shift away from large upfront expenditure and towards predictable monthly operating costs.
For technology suppliers, this creates opportunities to support customers who still need to modernise infrastructure but prefer manageable monthly payments.
Equipment Leasing and Finance Is Funding a Significant Share of UK Investment
Perhaps the most overlooked statistic in UK business finance comes from the Finance & Leasing Association.
During 2025, members of the FLA provided £40 billion of finance to businesses and public sector organisations.
Even more significantly, those members funded over one third of all UK investment in machinery, equipment and purchased software.
That means equipment finance is no longer a niche funding option.
It has become one of the primary ways UK businesses invest in productive assets.
This includes:
- IT infrastructure
- Servers
- Laptops
- Audio visual systems
- Telecoms equipment
- Software
- Medical equipment
- Manufacturing machinery
- Renewable energy technology
For suppliers, offering finance has increasingly become part of the sales process rather than an optional extra.
SMEs Are Continuing to Invest in New Technology
Small and medium-sized businesses remain responsible for a large proportion of UK technology purchases.
Recent FLA figures show SME asset finance lending continuing to grow throughout 2026, outperforming expectations despite wider economic uncertainty. In April alone, new SME asset finance lending increased by 8% compared with the same month in 2025.
This suggests that SMEs are still investing in:
- Cybersecurity
- Productivity software
- Hybrid working technology
- Cloud infrastructure
- Communications platforms
- Automation
Many smaller businesses may not have the cash reserves to fund these investments outright, making leasing and other forms of equipment finance an increasingly attractive option.
Digital Transformation Is Now Business as Usual
The UK Business Data Survey paints a clear picture of how embedded digital technology has become.
According to the latest research:
- 86% of businesses now handle digitised data.
- 92% of micro businesses use digital data.
- Nearly all small and medium-sized businesses report handling digital information as part of their daily operations.
Digital transformation is therefore no longer limited to enterprise organisations.
Businesses across every sector are investing in:
- Cloud platforms
- Secure networks
- Business applications
- Data analytics
- AI-powered software
- Cybersecurity
- Modern workplace technology
Each of these investments typically requires complementary hardware, implementation services and ongoing support, creating further opportunities for suppliers that can offer flexible finance alongside their solutions.
Where Technology Budgets Are Going and What It Means for Suppliers
Cloud Continues to Dominate Infrastructure Investment
Cloud adoption remains one of the biggest drivers of technology investment across the UK.
The latest UK Business Data Survey found that 31% of businesses now use a public cloud provider such as Microsoft Azure, Amazon Web Services or Google Cloud. A further 22% rely on third-party hosted software solutions, while 19% operate private cloud infrastructure. Traditional on-premise servers are still widely used, with 27% of businesses maintaining servers at their own premises.
Rather than replacing on-premise infrastructure completely, UK technology investment research is showing organisations are increasingly adopting hybrid environments. Businesses are investing in:
- Cloud migration services
- Networking upgrades
- Secure connectivity
- Backup and disaster recovery
- Identity management
- Endpoint security
- Storage infrastructure
For suppliers, these projects rarely consist of software alone. Cloud migrations often generate additional opportunities to provide hardware, networking equipment, managed services and implementation support.
Cybersecurity Is No Longer a Standalone IT Project
Cybersecurity has become a core business investment rather than simply an IT requirement.
According to the Department for Science, Innovation and Technology, the UK’s cybersecurity sector now:
- Generates £14.7 billion in annual revenue
- Employs approximately 69,600 people
- Consists of 2,603 cybersecurity businesses
- Contributes £9.1 billion in Gross Value Added (GVA)
The sector also attracted £184 million of investment across 47 dedicated cybersecurity funding deals during 2025.
UK technology investment shows growth is particularly strong around AI security. Government analysis estimates there are now 111 UK businesses providing AI-specific cybersecurity products or services, representing a 68% increase compared with the previous year.
For technology suppliers, this reinforces that security is increasingly being purchased alongside infrastructure rather than afterwards.
AI Is Changing Technology Buying Decisions
Artificial intelligence is influencing almost every area of business technology investment.
Research from the Department for Science, Innovation and Technology shows organisations are increasingly moving beyond experimentation and focusing on practical deployments that improve productivity, automate repetitive processes and support better decision-making. Businesses continue to report barriers that stem from cost, skills and implementation, but overall adoption is accelerating.
This has implications beyond software.
AI projects often require investment in:
- High-performance laptops
- AI-capable desktops
- Servers
- Storage
- GPUs
- Networking equipment
- Cybersecurity
- Cloud infrastructure
For many organisations, these infrastructure costs exceed the cost of the AI software itself.
Why More Businesses Are Choosing Monthly Payments
Although investment remains healthy, businesses are becoming increasingly selective about how they fund technology.
Several factors are driving this shift:
- Preserving working capital
- Avoiding large upfront expenditure
- Keeping pace with rapid technology refresh cycles
- Aligning costs with monthly revenue
- Supporting subscription-based software models
This helps explain why equipment finance now supports more than one-third of UK investment in machinery, equipment and purchased software. Rather than delaying projects, many organisations are choosing funding models that spread costs over time.
For suppliers, offering finance can remove one of the biggest barriers to purchasing: the initial capital outlay.
What These Trends Mean for Technology Suppliers
The research points towards several clear trends in UK technology investment.
Customers increasingly expect suppliers to provide complete solutions rather than simply selling products.
That means combining:
- Hardware
- Software
- Installation
- Support
- Managed services
- Flexible payment options
Technology purchasing is becoming more consultative, with customers focused on business outcomes rather than individual products.
Suppliers that can simplify procurement and offer flexible funding are often better placed to win larger projects.
Five Key Statistics Every Supplier Should Know
| Statistic | Why It Matters |
| £40 billion of finance provided by FLA members | Equipment finance is a mainstream funding method. |
| More than one-third of UK machinery, equipment and software investment is finance-backed | Leasing plays a significant role in business investment. |
| 31% of businesses use public cloud infrastructure | Cloud projects continue to create opportunities for suppliers. |
| UK cyber security revenue reached £14.7 billion | Security investment remains a major growth market. |
| AI-focused cybersecurity firms increased by 68% | AI is creating new demand for infrastructure and specialist services. |
How the UK’s Technology Industry is Moving Into 2027
Several themes are likely to shape technology investment over the coming year.
Artificial intelligence will continue driving demand for more powerful hardware and modern infrastructure.
Cyber resilience will remain a priority as organisations respond to evolving threats and new regulatory expectations. Recent UK measures to increase oversight of major cloud providers for the financial sector also highlight how critical cloud infrastructure has become to the wider economy.
At the same time, businesses will continue looking for ways to preserve cash flow while investing in digital transformation.
For suppliers, this creates an opportunity to move beyond product sales and become long-term technology partners, combining equipment, services and flexible finance into a single proposition.
Partner With the UK’s Leading Technology Finance Provider
The research throughout this report highlights a clear trend: UK businesses continue to invest in technology, but they increasingly want flexible ways to fund it.
For suppliers, offering equipment finance is no longer just an added service. It can help remove budget objections, increase average order values and strengthen customer relationships by making larger technology projects more accessible.
Lease Group works exclusively with technology and equipment suppliers across the UK, providing white-label finance solutions that integrate seamlessly into the sales process. From instant credit decisions and branded quotations to dedicated account management and partner support, we help suppliers offer a professional finance solution under their own brand.
As technology investment continues to evolve, the suppliers that combine expertise, service and flexible funding will be best positioned to grow. Partnering with Lease Group enables you to deliver all three while helping your customers invest with confidence.
Want to explore a partnership? Book a call with our team to discuss your requirements.