The number of new tech companies being set up in the South West rose by 42 per cent in 2017, according to new figures.

In total, there were 503 software development and programming businesses incorporated in the South West in 2017, up from 354 companies set up in 2016.

Nationally, there were 10,016 software development and programming businesses set up in 2017, with year-on-year rises recorded in every region in the UK, according to new analysis by RSM.

The figures validate the Chancellor's recent claim during the Spring Statement speech that a new tech firm is set up in the UK every hour.

Ben Bilsland, a technology specialist at RSM in Bristol, said: "These figures show very clearly that ,despite the fears of a post-referendum slowdown, the region's tech sector is incredibly vibrant and growing at a remarkable rate.

"There are a number of reasons for this. The region's universities are playing a key role in developing and nurturing exceptional talent and the country as a whole is continuing to attract the world's brightest and best.

"Entrepreneurs are able to gain good access to finance, either through traditional sources of debt at relatively cheap rates, or from venture capitalists and private equity funds.

"The UK's tax regime is also proving to be an incredibly powerful tool in encouraging tech businesses, who take advantage of legitimate tax saving and incentive programmes. These include the Enterprise Investment Scheme, Research & Development tax credits, video games tax relief and the Patent Box regime.

"However, there are some clouds on the horizon. While many in the sector will be cheered by the news that EU nationals will continue to be able to come and work in the UK during the transition period, the longer term position is as yet unclear.

"As interest rates starts to rise, we may also see a shift away from venture capital and private equity as investors seek returns from safer investments."