It is not possible to write this column without reference to the election. Coadec has summarised the three major parties’ approach to the digital sector. There is some variation, but the good news is that the parties recognise the importance of technology.
With 37% of property transactions in London last year taken up by the technology, media, advertising and information (TAMI) sector, and the renewed government focus on Tech North, the next government’s attitude to this industry will be significant. Each party’s position is laid out below – whatever happens on 7 May, there is a commitment from government to support and nurture the digital economy. However, none of them has addressed tax, immigration or data review in their plans.
At a meeting of the Tech London Advocates last week, it was clear the property industry is frustrating the development of tech in the UK, mostly through wayleave agreements for broadband connection, but also through lease structures, reinstatement clauses, security deposits, housing prices, and lack of supply. With the economics of five years ago constraining supply of new build, there are tech markets in the UK with significant property supply challenges.
Whoever is in government next must look to protect affordable property supply for growing companies. A tech nation needs broadband in every corner of the UK, and the skills to go with it. It is with these policies that the tech revolution will have longevity.
Labour
Labour’s manifesto includes this promising section: “Labour’s longer-term approach will drive innovation and build on our strengths as a leader in digital technology. We are just at the start of the internet revolution… Our economy is developing a network of connections that will revolutionise innovation.”
Labour will focus on broadband, digital skills, small business, creating a British investment bank to improve access to finance for SMEs and digital government.
Conservatives
The Conservative manifesto is full of references to supporting entrepreneurs, start-ups and business. It highlights tech start-ups as something to be proud of: “More tech companies are starting up here than anywhere else in Europe.”
The manifesto focuses on tripling the current start-up loans programme, helping small companies access government procurement, and providing mezzanine finance for scaling companies.
Lib Dems
The Lib Dem manifesto stresses digital as a UK competitive advantage and a sector that policy needs to support explicitly: “The UK has a competitive advantage in key sectors of the modern economy that have the capacity to transform our lives. The UK’s digital sector is growing at a rate of over 10% a year, employing nearly 1.5m people… We need to support this sector of our economy.”
This is followed by a series of policy commitments, covering broadband, clusters, scale-ups, skills, digital government and open data.
Juliette Morgan is a partner at Cushman & Wakefield and head of property at Tech City UK
