The UK Tech Cluster Group (UKTCG) welcomed the Shadow Secretary of State Lucy Powell to Manchester Technology Centre for a meeting on the future of digital tech across the UK. 

Lucy, who is also the MP for Manchester Central, talked about Labour’s upcoming plans for the digital economy. Katie Gallagher, MD of Manchester Digital and chair of the UKTCG, and group members provided insights from their work with businesses about what is needed to unlock the full potential of the tech economy right across the UK.    

Lucy Powell outlined that as the official opposition, the Labour Party are keen to support all parts of the UK and ensure that digital regulation, data and AI policies nationally underpin the work of local and regional leadership and businesses across the UK in delivering a world-leading tech economy which works for all communities. 

Lucy explained, “We are keen to work with the tech industry in all parts of the UK. With proper devolution, local leaders could design their own programmes and decide how funding is allocated without the expense and time of bidding to multiple fundings pots held in Whitehall.” 

Phil Jones, director of innovation at Wired Sussex, said: “The ‘connective tissue’ of our local and regional ecosystems are crucial to driving innovation – both for high productivity businesses, and in the foundational economies. Through our work at the grassroots, we see practical ways to support more people and companies to benefit from the opportunities which the digital economy creates. 

“As a sector, we are keen to help young people really understand the wide variety of career pathways within the industry with huge scope for progression. We also need a more supportive environment for the Angel sector, and a better way to connect early-stage start-ups with Angel investors. All of this would create a wider ‘connective tissue’ to support the growth of the tech industry.”

David Dunn, CEO at Sunderland Software City, agreed, “It’s really important that we reach into schools to help develop the tech pipeline. So we need to create more talent, from school age to ensure we have a growing pathway into the tech industry.” 

Katie outlined some current limitations of the Apprenticeship Levy. “We would like to see the opportunities for smaller employers, who often don’t take on apprentices for fear of the unknown. It would be great to see an awareness campaign as well as some level of reform around how businesses can use the Levy.

“The funding that goes into Business Growth Hubs, for example, is for generic businesses, not specifically tech or startups. Devolution can help the tech sector as local leadership and their business community know where they need specific funding.”

Katie reiterated how important it was to include smaller tech clusters in wider programmes, otherwise they frequently miss out. 

Phil added, “Engaging with partners on the ground who collectively understand industry needs and barriers to growth and inclusion, is crucial to ensuring all parts of the UK are able to share in the success of our tech sector.”

Yiannis Maos, CEO of Birmingham Tech, expanded on this, “We need to support our tech SMEs to reach their potential  because that’s where growth happens. This also creates jobs in our communities and drives innovation across the economy.”

The UK Tech Cluster Group works with Government and Parliamentarians as well as local leadership, industry and partners within our clusters. Members are represented on the Government’s Digital Economy Council and Digital Skills Council and collaborate nationally to support the smart, sustainable and inclusive growth of the UK’s tech ecosystems.

By Katie Gallagher, chair of the UK Tech Cluster Group and MD of Manchester Digital

The Government announced its new Digital Strategy today, coinciding with London Tech Week, which is a little bit ironic, given all its talk of levelling up to the regions over the past year. However, it is heartening to see that there is acknowledgment of the growing importance of regional tech ecosystems with the government predicting that regional ecosystems could contribute an additional £41.4bn to GVA by 2025.

The document is an update to its predecessor from 2017 – which seems far more than five years ago, given everything that has happened in the UK since then. 

As the UK economy falters after the pandemic spending spree, the Government is placing its hope for the future in tech, digital and innovation. The report states that the UK saw £27.4 billion private capital invested in tech last year, more than any other European country. Cisco predicts that a more inclusive digital strategy could add £168 billion to the UK economy by 2030. The updated vision from DCMS is that the UK will be the best place in the world to start and grow a tech business.  

The newly released paper covers six areas that the Government will focus on to achieve their aims: 

New digital regulations – creating a digital infrastructure to protect citizens and ensure that tech and digital security and intellectual property is defended. 

Ideas and intellectual property – Government investment into research and development as well as R&D tax incentives, as well as growing AI, next-generation semi-conductors, digital twins, autonomous systems and quantum computing. 

Digital skills and talent – working with schools, universities and further education to develop tech and digital skills, as well as continuing to invest in apprenticeships, T-Levels and other digital training – and opening up new visa routes. 

Financing digital growth – continuing to support innovation and growth financing, as well as continuing to promote the London Stock Exchange. 

Levelling up and public services – creating better access to digital technologies across the whole of the UK. 

Enhancing the UK’s place as a global tech power – promoting better global trade, which is also linked to a forthcoming International Tech Strategy. 

I have recently been appointed to the Government’s Digital Skills Council which is currently looking at how we can combine the levelling up agenda with digital skills and tech growth. If this Government is going to create an enviable global tech hub, then it must work quickly to include the whole of the UK, and not just London. 

As chair of the UK Tech Cluster Group, I work hard with colleagues from the other regions and nations to raise the  profile of regional tech ecosystems and help national and regional governments understand the best ways to support and grow them.

Across the UK, regional tech ecosystems have many of the same core issues but they are also at different stages of their development, with different specialisms and differing levels of provision, whether that is access to funding, the right skills supply or scale up support.

The only way that levelling up the tech industry will work is if it happens at a grass roots level and any intervention from the Government is flexible enough to meet the nuanced needs of the regions and nations. 

In addition to this, the regional tech eco-systems have a huge role to play in developing R&D capacity, in terms of outgoings and cost, so I would love to see these assets developed. While they have less capital outgoings on rent, salaries etc, there is more budget available to go into equipment and research. A relatively small number of highly innovative and fast-growing businesses, stemming from this localised innovation, can make a huge difference to the prosperity of smaller towns and cities.

Overall, we welcome the new Digital Strategy and its ambitions. However, it is absolutely vital for the Government to realise what already exists in the regions. Grassroots tech organisations work incredibly hard to support start-ups, create role model programmes for youngsters and developing tech apprenticeships – all without huge amounts of investment. 

Imagine what we could achieve with significant amounts of investment…

Wired Sussex is collaborating with the University of Chichester and Coastal West Sussex to develop a strategy for the creative digital sector along the coastal corridor between Brighton and Chichester.

The strategy will focus on multiple ways to enhance and connect the existing creative digital growth activity, helping businesses and others benefit from regional collaboration. The aim is to provide an ambitious and coherent plan backed up with strong evidence in order to support applications by regional authorities for funding to support the sector.

Wired Sussex has a strong track record in strategic work that has delivered significant infrastructure investment in their region. In 2016, they conducted a project in Bognor Regis, identifying and supporting digital creative companies in the area, and working out their needs. The result of this work not only helped people come together, build stronger networks and accelerate the creative industries, but also led to the renovation of the Victorian waiting rooms at Bognor Regis station into a new co-working space called The Track.

Visit the Wired Sussex website to find out more about the Coastal West Sussex project.