The tech sector needs a ‘shot in the arm’ to make Britain’s Silicon Valley dreams come true, the industry says

Monday, February 20, 2023 7:00 a.m

Britain’s ambition to create its own Silicon Valley is achievable, but only if the government implements a long-term strategy to boost domestic and foreign confidence in the country’s tech sector, industry experts have warned.

Last month Business Secretary Grant Shapps unveiled plans to create a “British-flavored Silicon Valley”.

Trade association techUK said the ambition is exciting but has serious questions about how the government plans to achieve it.

Neil Ross, deputy director for policy at techUK, said there was a “crisis of confidence” in the industry at the moment.

To fix this, he says, the government should focus on three things: improving skills and infrastructure; Securing the international competitiveness of the technology sector; and the implementation of a comprehensive long-term strategy.

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Ross urged the chancellor to use the spring budget to give the tech sector “an injection in the arm” after a poor end to 2022.

Ross added that it was “unhelpful” that the chancellor cut research and development tax incentives for small tech companies last year.

Richard Rawcliffe, vice president of UK public sector at Dell, said that “investments from central government and private companies are vital to continue important research and development initiatives and to drive digital transformation in companies of all sizes”.

Rawcliffe added that while the formation of the new Department for Science, Innovation and Technology is a “step in the right direction”, the UK needs to address the skills gap issue “plaguing the workforce”.

“Harnessing the power of this data will help the UK become a global leader in innovation,” said Rawcliffe.

Naomi Weir, Director of Innovation at the CBI, said, “We need to decide what we invest in and what we excel at – and how that fits into the broader global ecosystem – versus what we’re letting others carry on.”

Weir believes that if the UK wants to see Silicon Valley on British soil, there is no “quick fix” and that it needs to be in the long term.

A Treasury spokesman said: “Growing the economy is one of the Prime Minister’s top priorities, which is why we have maintained record levels of capital investment and R&D spending and set out our vision to develop exciting sectors such as technology.”

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