UK tech leaders call for budget focus on growth & security
As the United Kingdom approaches the unveiling of its Autumn Budget, key figures in the tech industry have highlighted their expectations and concerns. The industry is keen to see policies that both support technological growth and address fiscal challenges.
Phil Kwok, CEO and co-founder of Easy A, stressed the importance of tax reform and long-term investment in the tech sector. "If Capital Gains Tax (CGT) hikes are made, it will impact scaling businesses and startups dramatically," he noted. Kwok pointed out that such increases could discourage investment and growth, driving founders and investors to look beyond UK borders, potentially towards the US, where the investment climate is perceived as more favourable.
Kwok also emphasised the need for an educational shift to address the digital skills gap. "There's a new generation of entrepreneurs with creative minds ready to pursue innovations in Web3 and AI," he said, advocating for alternative educational pathways to ensure that the workforce is equipped to engage with emerging technologies. Additionally, he highlighted the scarcity of available capital for early-stage startups in the UK, in contrast to the more robust opportunities available in the US.
Concerns about cybersecurity have also been voiced as a priority for the upcoming budget. Barry O'Connell, General Manager of EMEA Services at Trustwave, underlined the need for adequate investment in national cybersecurity defences. Given the rising frequency and complexity of cyber threats, he suggested that the government should prioritise funding to enhance the UK's cybersecurity infrastructure. "Incentives for tech companies and enhanced tax relief could bolster the nation's readiness against such threats," he said.
Moreover, O'Connell stressed the importance of government intervention to ensure foundational cyber hygiene. This investment would be vital in safeguarding the National Health Service and other critical public services from potential cyber threats.
The potential role of technology in achieving cost efficiencies was another theme highlighted by experts. Rhys Merrett, Head of Tech PR at The PHA Group, pointed out that while the budget might focus on efficiency and spending restraint, leveraging technologies like AI could realise significant gains, particularly for public services such as the NHS. "There is hesitancy in adopting new technologies, but considering the efficiency gains crucially needed, it's a conversation we need to have," Merrett remarked.
Looming over the discussions is the Labour government's promise of a budget designed to lay down the foundation for future economic resilience. However, Merrett noted that public confidence in the government's economic strategies remains tenuous, given varied opinions on its first 100 days in office.
Looking ahead, industry leaders suggest initiatives that unite business leaders, investors, and the public sector with academia will be vital in fostering a supportive environment for burgeoning technology firms. By utilising London's status as a tech hub, the UK might enhance its global competitiveness in the tech sector.
The upcoming budget presents an opportunity for the government to articulate its commitment to technological advancement and cybersecurity. By addressing the sector's needs and fostering an innovative ecosystem, the government has the potential to catalyse growth and drive the UK's economy forward in the digital age.
