Mtb without a shadow of a doubt.
My road bike is 15 years old this year and still doesn’t feel outgunned on a club run. It has been extensively upgraded but only to shed some weight. improve ergonomics and fit tubeless tyres, it’s still 10speed. That’s not to say there’s not gains to be made but remember what MTB’s were like in 2004?
Having said that, you could probably make bigger improvements spending the money on other stuff. £1k on getting the suspension serviced and tuned properly, coaching days, new tyres etc probably exhausts the things that are going to offer the most bang for your buck off road.
On road I’m going to contradict myself and say get a new bike. Disk brakes, 50mm aero rims (because carbon and rim brakes suck) and a proper bike fit. But again that’s £2.5k and anything above that is even more marginal gains. I’m thinking Allen Sprint disc and some Chinese wheels, should make something as fast as any mere mortal will be able to notice whilst riding.
It might make a difference of 0.5mph average speed on a ride…
That’s a big difference on a road bike. Hanging on the back of a group or being able to actively do a turn.