UK election impact on tech sectors critical – industry

The forthcoming UK General Election is poised to significantly influence key sectors such as the National Health Service (NHS) and technology industries.

Insights from various industry leaders reveal a collective call for strategic investments and long-term planning to ensure sustainable growth and efficiency in these sectors.

Scott Fletcher, Chief Executive Officer of Real World Health, emphasised the critical state of the NHS. "The NHS has become a key battleground in this election," Fletcher noted, citing findings from The Health Foundation. The think tank highlights a gap in convincing plans from main political parties on improving the NHS. Fletcher stresses the necessity of capital investment, including in systems and technology, as essential to transforming the NHS to tackle evolving population health needs and the backlog of care resulting from the Covid-19 pandemic.

Fletcher underscored the urgency of adopting predictive and prescriptive data analytics, particularly through artificial intelligence (AI) and machine learning (ML), to maximise the impact of every pound spent on healthcare. He warned against a culture of risk aversion fostered by inadequate funding and called for a shift towards incentivising NHS organisations to take positive risks that deliver return on investment.

On the business front, the UK Business Data Survey 2024 reveals discrepancies between companies' claims of being 'data-driven' and their actual data utilisation. Scott Logie, Chief Commercial Officer of Sagacity, pointed out that only 21% of businesses analysed data to generate new insights or knowledge. Moreover, 58% of those who analysed data admitted it had not resulted in innovation. Logie suggested that for businesses to truly benefit from their data, they must cross-reference it with third-party insights to make informed decisions and spur innovation, thereby staying competitive in their markets.

In the technology sector, a press release from TechWorks highlighted the upcoming election's critical role in shaping the UK's future in emerging technologies like semiconductors, AI, and quantum computing. Charles Sturman, CEO of TechWorks, stressed the importance of government collaboration with industry to develop policies that transcend the current parliamentary session and foster substantial growth in these high-tech fields.

Sturman pointed out that despite the UK's innovation prowess, evidenced by world-class universities and startups, the country is lagging in support for the semiconductor industry compared to other G7 nations. He highlighted the economic and geopolitical potential of the semiconductor industry, which is expected to grow from USD $600 billion in 2024 to over USD $1 trillion by 2030. Sturman cited the success of companies like the US-based nVidia, whose revenue from AI-related chips alone reached USD $63 billion, underscoring the massive economic gains that could be realised with strategic investments in the UK's semiconductor sector.

TechWorks proposed several measures for the next government: enhanced cabinet collaboration with the industry, revised capital expenditure support, strategic funding initiatives, domestic procurement incentives, improved access to long-term capital, and focussed investment in skills development across educational levels. These steps are aimed at fostering a robust deep tech ecosystem that can propel the UK towards becoming a technology superpower.

As the election approaches, stakeholders urge the new government to consider these insights and recommendations seriously. The strategic alignment of policies with long-term industry needs is key to ensuring the UK's competitive edge and sustained growth in critical sectors like healthcare and technology, ultimately benefiting the nation's economy and national security.