UK Govt budget announcement draws mixed responses from tech leaders

The UK Government's recent budget announcement has sparked a wave of reactions from industry leaders and experts, with some concerned about the implications for the country's tech sector. While some have praised certain measures, others express apprehension over the absence of specific investments targeted towards emerging technologies such as artificial intelligence (AI) and quantum computing.

Greg Hanson, Group Vice President for EMEA North at Informatica, voiced his concerns regarding the budget's lack of commitment towards advancing emerging technologies.

"The UK is at risk of missing a once-in-a-generation opportunity to lead the wave of AI adoption globally," Hanson warned. He highlighted that while digital technologies form the core of the UK's industrial strategy, the absence of new investments in research and infrastructure for AI and quantum computing is apparent. This gap could potentially lead to a conservative approach from companies that are awaiting clearer directives on leveraging these technologies responsibly.

Hanson further noted that additional funding could have helped businesses set priorities in high-growth areas such as data and AI, while being mindful of associated regulatory costs and requirements. The lack of investment could prompt skilled professionals and innovative companies to pursue opportunities in other regions where the focus on technology is stronger.

On the other hand, Mark Boost, CEO of Civo, acknowledged a significant aspect of the budget, the retention of R&D tax relief, calling it "encouraging." However, he cautioned against underestimating the hurdles ahead for the UK tech sector.

Boost emphasised that the R&D budgets of many US tech firms currently overshadow those of the entire UK private sector, posing a competitive challenge for British innovators. Although the retention of R&D tax relief is a positive move, Boost expressed concerns that the increase in employer national insurance could stifle innovation and potentially disadvantage the UK tech scene against global competitors.

Meanwhile, Professor Rachid Hourizi MBE, Director of the Institute of Coding, presented a more optimistic view of the budget, particularly its focus on skills development.

Hourizi commended the Government for recognising the importance of digital skills, considering the rising demand from businesses and the increasing role of AI. He praised the establishment of Skills England by the Labour Government as a promising start to addressing the UK's skills gap and supporting economic growth. He recognised this as a necessary step to ensure the country remains competitive in the tech sector.

The differing perspectives highlight the ongoing debate regarding the UK's strategic priorities in technology and skills development. The UK's tech sector faces the challenge of fostering innovation and maintaining competitiveness amidst formidable international rivals. As the Government navigates these complex dynamics, stakeholders across the economy will be closely monitoring subsequent policy developments to ensure the nation's tech economy thrives on the global stage.