May 2022: a month in review with Tech Nation CEO
7 min read
A new tech company is formed every hour in the UK, but Philip Hammond, the Chancellor of the Exchequer, wants to see a new startup formed every half hour, an ambition that we can get right behind.
After last week’s announcement on £21m of funding to create Tech Nation to build a national network of digital excellence and more visas for people with exceptional tech skills, the Chancellor gave further evidence that the Government is firmly backing the UK digital tech sector and innovation and science-led industries.
The Budget revealed new money for maths and computer science in schools and funding for new technologies including £75 million to take forward recommendations of the AI review. There was a commitment to invest in 5G and full fibre broadband and new money for digital skills training, as well as other measures to help bring more investors into the sector.
The Government’s response to the Patient Capital Review was also published, which set out measures to help catalyse investment into scaling companies and make sure the most innovative firms have access to long-term funding.
Maria Palmieri, Government Relations lead for Tech City UK, said: “Our world is changing fast and the tech and digital sectors in which we work are at the heart of those changes. We very much welcome the Chancellor’s recognition that to continue to be a leading contender in this global industry the UK must boost the maths and computer science skills of our children and young people.”
“The UK already has a world-leading position in many of the technologies that Philip Hammond singled out today, including artificial intelligence and driverless cars, but we must not lose our edge in these area. Committing funding to innovation and allowing increased EIS investment in knowledge-based companies is a strong message to the world that we intend to accelerate the growth of our tech-based sectors, which will help us to future-proof the whole British economy and provide high-quality, high-paying jobs across the whole of the UK.”
Gerard Grech, Chief Executive of Tech City UK: “Several constructive growth and funding initiatives as well as measures were announced by the Chancellor of the Exchequer in this year’s Budget – a lot of it based on direct feedback from businesses. We welcome the UK Government’s commitment to increasing its R&D to 2.4% of GDP over the next ten years, with the intention of increasing its global science and tech standing. While we welcome the Chancellor’s reassurance that the Government will replace EIF funding where necessary, the Government needs to try to resolve this situation quickly. EIF funding is essential to many transactions right across the early stage tech sector and without it deals could seize up – although today’s commitments by the British Business bank will go far to prepare the ground as the UK plans to exit the EU ”
Some useful links:
https://www.gov.uk/government/publications/autumn-budget-2017-documents/autumn-budget-2017#tax
https://www.gov.uk/government/publications/patient-capital-review