With a new party in power for the first time in 14 years, the UK tech sector finds itself at a crossroads.
Throughout the various iterations of the Conservative government, tech has been a consistent bright spot – the UK has regularly ranked in the top three global tech sectors over the last decade, with venture capital investment holding strong and a track record of world-leading unicorns being created.
Without doubt, there are several high-profile challenges that will define the next parliamentary term – from addressing climate change and building new geopolitical relationships to developing global AI capabilities and equipping the British workforce with the digital skills it requires.
What is clear is that a pro-tech, future-focused approach from the new government will be vital to effectively navigating these era-defining issues and maximising the opportunities they present.
New government, new faces
As with any change in government, tech leaders have watched closely to see which new faces would take a seat at the cabinet table.
Peter Kyle’s ascension to secretary of state for science, innovation and technology will have surprised few. Having ably held the equivalent position in the shadow cabinet since September 2023, the MP for Hove and Portslade will enter the department with a wealth of understanding of the inner workings of DSIT and the issues facing UK tech.
Indeed, Kyle took little time to publish his ‘defining mission’: namely, digitally transforming the public sector to enhance efficiency and make Britain’s services future-fit.
The new secretary of state’s commitment to incorporating experts from the Government Digital Service (GDS), Central Digital and Data Office (CDDO) and Incubator for AI (i.AI) is a promising sign of his focus on frontier tech as a driver of economic growth in the years to come, as well as the need for collaboration across departments.
Similarly, the explicit reference to tackling climate change via a revamped tech sector in the King’s Speech clearly demonstrated a desire to maintain the UK’s longstanding and well-earned leadership position in climate tech.
Elsewhere in DSIT, Lord Patrick Vallance moved into the ministerial equivalent of Kyle’s role and Sir Chris Bryant MP became the minister of state for data protection and telecoms – both positive appointments which showcase the government’s commitment to incorporating proven expertise across the department.
A small matter of concern that UK tech leaders may have noted has been the lack of briefings for incoming AI-specific legislation. It is crucial that the UK builds on the fast start in this area; our AI market is currently the third largest globally but will not remain as such if not given the investment and support needed for it to flourish.
Internationally, competition in this sector is hot – Labour must ensure the UK does not lose its important world-leading position, particularly given London’s success in securing commitments from OpenAI, Microsoft and Salesforce to create global AI hubs in the capital.
International challenges
It felt well-timed that one of the new prime minister’s first commitments was a meeting with some of the UK’s closest partners at the annual NATO Summit, this year in Washington, DC. With uncertain times ahead and several geopolitical conflicts across the world, it is crucial that the UK shores up its closest partnerships and looks to forge relations with multiple nations around the world.
The tech sector continues to demonstrate this reality – indeed, the highest-profile companies internationally in this dynamic industry continue to be led by diverse teams with global perspectives.
Similarly, in policy, the most effective and impactful legislation continues to be driven when key decision-makers come together. Last year, the UK successfully hosted the AI Safety Summit, and tech leaders will hope that the new government commits to staging similar conventions to promote and cement the country’s agenda-setting position.
In the last two weeks, Global Tech Advocates (GTA) has proudly launched its own contribution to international tech collaboration – GTA Launch Pad.
Free to enrol, GTA Launch Pad offers a bespoke platform in which GTA Leaders, partners and sponsors offer insights, tips, contacts and advice on expanding business ventures to new international tech markets. With each market unique and driven by different forces, accessing local expertise is a crucial part of any scaleup looking to expand abroad. All 38 GTA groups in over 60 countries have made submissions to provide a wealth of information to support scaling businesses and their global growth plans.
Ultimately, this is about fostering a spirit of international collaboration – and the new government will need to adopt a similar global outlook if it is to get the best out of the UK’s tech sector.
Government collaboration is key for tech
A month is scarcely time to make conclusive judgments about a new government. But as the world continues revolving with its familiarly frenetic urgency, Labour will find time flying by at an ever-faster pace.
For the government to maintain this early momentum, it is crucial that it builds expertise quickly and develops relationships with leading innovators. In UK tech, the government has access to a wealth of diverse groups and expertise – engaging and consulting with them whenever possible will strengthen the government’s ability to learn fast and move quickly.
The UK’s tech sector has been built on a vibrant collaborative spirit, helping to support its ambition and success. It would be great to see the new government adopt a similar approach to collaboration with the private sector and leverage the vast pools of expertise available for it to use.
Russ Shaw CBE is the founder of Tech London Advocates & Global Tech Advocates, and a regular UKTN columnist.
The post Labour’s early tech promises and the importance of thinking globally appeared first on UKTN.
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