Depending on who you listen to Chancellor Jeremy Hunt’s Budget is either a “£4bn tax giveaway for the rich” or will lead to a “brighter future for Britain” but technology and advertising bosses are in little doubt that the Government must take more action to accelerate growth.
Advertising Association director of public affairs Sue Eustace insisted “there is more to be done” but added that it was “interesting” to see the Chancellor’s announcement of a new Industrial Strategy focused on encouraging growth and productivity.
This aligns well with the core function of advertising which is itself a key driver of economic growth, competition and innovation and creator of jobs across the nations and regions of the UK, Eustace said.
She added: “We need to encourage inward investment and to create an environment that facilitates technological innovation that will give the UK a leading edge. Hence, the Chancellor’s announcements around AI, R&D tax reform, and innovation clusters are interesting measures that can help boost a business environment where advertising and marketing firms can thrive in a global market.
“This is important as the Advertising Association’s UK Advertising Exports Group completes another successful trade mission, in partnership with DBT, which showcased the advertising industry’s innovation and technical excellence in creative services at SXSW in Texas.”
Eustace reckons the Budget will turbo-charge initiatives by businesses and industry sectors by introducing voluntary schemes to help those with disabilities into the workplace, as well as helping the over 50s and parents with childcare needs to get back into work. But she added: “We will continue to urge the Government to consider reforms to the apprenticeship levy to ensure it is more flexible and workable for businesses.”
For Ritam Gandhi, founder and director of tech business Studio Graphene, for Budget was a mixed bag.
He added: “The PM makes a habit of mentioning that he’s spent time in Silicon Valley, while the Chancellor often references his own entrepreneurial experiences. So, it stands to reason they’d champion entrepreneurship, particularly in tech, and these topics were certainly at the heart of Hunt’s speech – yet he also overlooked some key issues inhibiting innovation and growth.
“Yes, there were positives: there were boosts for AI companies. Tax cuts for R&D and those investing in IT and machinery in the UK are to be welcomed. And the investment zones sound promising, but exactly how and where the £80m of funding will be spent in those 12 hubs remains to be seen.”
However, Gandhi claims some of the most common challenges UK tech businesses face were not adequately addressed – namely, accessibility of funding for scaling businesses (delayed until the Autumn Statement), and helping plug the tech skills shortage that holds back so many digital companies.
He continued: “The current axis we have in 10 and 11 Downing Street should give tech companies cause for optimism. But their rhetoric of wanting to make the UK a tech superpower still requires more substance, and policies cannot be limited to isolated zones; they must be available to tech firms across the UK.”
Corporate finance and M&A expert Claire Trachet, meanwhile, believes it is imperative that the Government continues to prioritise the tech sector.
“The Government’s commitment to strengthening the country’s position in artificial intelligence through the AI sandbox and the clarity on IP rules for generative AI companies will enable us to bring cutting-edge products to market faster.
“Additionally, the £900m funding for an exascale computer and the £2.5bn Research & Innovation Program for quantum computing will position the UK as a world leader in this field. Introducing funds such as The Manchester Prize also offers an incredible opportunity for AI research to be recognised and incentivised in the country. ”
She concluded: “While the Science & Technology Framework is a positive step, sustained investment and attention are needed to maintain Britain’s status as a leading country for tech innovation and growth. With technology solving significant problems and investor interest growing, now is the time to be competitive and create incentives that will incite investment into the UK tech sector.”
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