According to government statistics, UK tech companies received more venture capital investment than their competitors in France, Germany and China in the first five months of this year.
“President Macron will choke the croissants this morning,” joked digital economy minister Chris Philp, who released the data at the beginning of London Tech Week.
As of May 31, more than 950 UK technology companies have provided £ 12.4 billion in private funding, making the UK the second largest seed investment after the United States.
The numbers were released when the government launched a new UK digital strategy to “grow the economy and create higher skills and higher paid jobs by establishing the UK as a global technology superpower.” it was done.
At the same time, the need for economic growth has been emphasized by the Confederation of British Industry (CBI), which has released figures for the United Kingdom. Economy reduced by shock 0.3% During April.
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The data echoes with widespread warnings that the economy is facing weak growth over the long term. Living cost crisis This is expected to intensify in the coming months as energy prices rise further to fuel inflation.
This forecast led to a downgraded growth forecast from the UK Chamber of Commerce and the OECD last week, the latter Britain’s outlook was the weakest Of all major economies except Russia.
UK Digital Strategy
Philp said the government is aiming to “increase the total value added of the UK’s technology sector by £ 41 billion over the next three years and create 700,000 new jobs.”
This is achieved through several complementary activities, including the new UK Data Reform Bill, like Sky News. that isAnnounced in the Queen’s Speech.
Sky News understands that the government’s response to this public consultation on data reform has been delayed due to scrambling to determine what the ministries say.
The Department for Business, Energy and Industrial Strategy will announce its quantum strategy later this year, along with another semiconductor strategy paper that is expected to investigate the UK’s position in the global market after supply shortages.
Another white paper on AI governance is scheduled for later this year, setting up a “lightweight approach to AI regulation” and encouraging innovation.
Some of the government’s ideas about AI could be challenged by new Information Commissioner Jon Edwards. He told Sky News earlier this yearHowever, companies broadly support measures to enable customers to use the data they process to improve their products.
Philp said the government would encourage UK pension funds to invest in the UK’s technology sector.
“British financial institutions, especially pension funds, have great opportunities to allocate much more capital to pre-IPO technology in the way that North American cousins in the United States and Canada have already done.
“They aren’t heavily assigned to technology. [and so] UK pension funds and financial institutions are missing out on amazing return opportunities.
“And allocating even a small percentage of trillions of pounds of AUM to UK Tech will help ignite the wave of innovation, in addition to providing high returns for investors and retirees. Would. It would really be comparable to the West Coast. »»
“Therefore, in the coming weeks and months, we will work with our government and colleagues in the technology and financial services sectors to find a way to do this,” Philp added.