The UK’s Autumn Budget announcement is imminent. This is a particularly significant budget for the tech sector as its the first of a new government.

Despite lofty promises from political parties to cement the UK’s position as a global tech leader in their manifestos, both manifestos cast doubt on the government’s actual commitment to this vision. 

With the Prime Minister warning of a ‘painful’ budget and ‘big asks’ from the public, it’s crucial the tech industry’s needs are not overlooked, as it is a massive driver of economic growth. So let’s look at what the upcoming budget could bring to the UK’s tech sector.

Correcting the investment setback

In August, the Department for Science, Innovation and Technology announced the shelving of £1.3 billion worth of investments earmarked for UK tech and AI projects, citing a lack of available funding. This decision has led to accusations of the new Government having ‘low’ ambitions for the UK tech sector. 

The launch of the AI Opportunities Action Plan to identify optimal investment strategies in computing infrastructure and AI is a step in the right direction. However, we will need to see more financial commitment towards substantial, ring-fenced funding for tech and AI projects that will drive innovation and maintain the UK’s competitive edge on the global stage.

A skills and education overhaul

One of the most pressing issues facing the UK tech sector is the widening skills gap. It’s estimated that 30% of cyber firms in 2024 have faced problems due to a technical skills shortage. The budget must address this challenge head-on with significant investments in digital skills initiatives. We need to see:

1. Funding for comprehensive digital literacy programmes across all levels of education
2. Support for retraining and upskilling programmes for the existing workforce
3. Incentives for businesses to invest in their employees’ digital skills development
4. Initiatives to attract and retain top tech talent from around the world

We can’t afford cyber as our weakness

Given the increasing importance of cybersecurity and the potential threats to national security, we expect to see a continued focus on this critical area. Recent attacks on CNI (NHS/TfL) and government institutions have highlighted the urgent need for robust cybersecurity measures. The budget should include:

1. Critical infrastructure protection: there needs to be a significant increase in the allocation of resources to protect vital infrastructure such as power grids, transportation networks, and healthcare systems from cyber attacks.
2. Cyber threat intelligence platforms: substantial investment in advanced cyber threat intelligence platforms is needed to provide real-time insights into emerging threats. This will enable proactive defence strategies and enhance the UK’s overall cybersecurity posture.
3. Public-private partnerships: funding and incentives is essential for collaboration between government agencies and private sector cybersecurity firms to foster innovation and knowledge sharing.

The quantum dilemma: harnessing potential while avoiding disaster

As mentioned, the government’s withdrawal of £1.3 billion in funding for deep tech projects, initially promised by the Conservative government, has raised concerns. One particular area of concern is around quantum computing.

There was a deafening silence from the previous government on its commitment to the 10-year roadmap for quantum they laid out, despite it requiring serious attention. The Labour government now has the opportunity to expand on quantum plans.

Despite the endless benefits of quantum and the need for quantum investment, there is little attention or funding towards the threat that these computers will have the capacity to render all existing forms of encryption and security redundant. 

Whether it is decrypting government secrets or organisational networks, the quantum arms race is very real and so are its consequences.

Therefore, it would be seriously beneficial for the government to invest in securing all critical national infrastructure which will fall in the event of an operational quantum computer. 

Invest to be a tech leader

The upcoming autumn budget represents a pivotal moment for the UK’s tech sector. While the economic climate may be challenging, failing to invest in technology and innovation now will have long-lasting consequences for the UK’s global competitiveness and economic growth.

The government needs to move beyond vague platitudes and make concrete, substantial commitments to support the tech industry. This includes rectifying the recent investment cuts, addressing the digital skills gap, and bolstering our cybersecurity capabilities. Only through decisive action and strategic investment can the UK truly live up to its ambition of being a global tech leader.