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Amid increased geopolitical challenges and concerning long-term trends impacting the global economy, the UK is in a difficult position as a trade-dependent economy. The country is vulnerable to disruptions in global supply chains. Despite these challenges, the UK has substantial strengths – including the resilience of its tech sector. In fact, the UK’s tech sector has continued to develop, growing by 81.3% in GVA terms since 2010. 

If the Government is to succeed in its growth mission, then it must put advancing the UK’s technology sector at the heart of its approach. 

techUK’s report – ‘Enabling Growth and Resilience: the UK Tech Sector in an Uncertain World’ – makes policy recommendations on how the UK government can ensure that the tech sector thrives. These fall into four pillars:  

Building policy coherence and longevity 

• The Government must ensure it has the capacity and expertise to understand the rapidly evolving tech sector, that its various policies are coordinated, and that they avoid contradictions that undermine their intent. 

• Commit to long-term strategic planning and policy continuity whilst ensuring policy interventions are well-targeted.

Enabling security and resilience 

• The Government should coordinate economic security and industrial policies with its allies to avoid a harmful subsidy race and maintain a level playing field. 

• Additionally, it should utilise its procurement power and consider strategic investments in key firms to protect critical technologies. 

• The report further calls for a pragmatic and streamlined approach to investment screening and for the Government to account for the impact on businesses when imposing export controls and sanctions. 

Accelerating growth through trade 

• The UK should step up as a leader in support of multilateralism and free and fair trade. This should include improving the negotiation and implementation of Free Trade Agreements, as well as working to reestablish a better trading relationship with the EU.  

• Additionally, the UK should continue its fight against digital protectionism, particularly through the WTO, and negotiate more digital trade agreements with high-value and like-minded international partners.  

• The UK should further build on its regulatory strengths and influence in international standards-setting bodies and push for including AI and quantum technologies in trade agreements. 

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