CES 2017: Is UK Government Support For Tech Really ‘Embarrassing’?

“Skyscanner has emphasised that UK businesses are left with little or no support from UK government,” said Christian Lane, founder of Smarter.

“If and when a sales offer comes in it’s hard to say no as the risk of continuing to scale up vs selling out is just too high.  Whist the £400 million [in R&D funding] pledged by Hammond does show willing it will be a case of watch and see to know if it will have any impact on businesses like ours.

“In the case of Skyscanner and also ARM Holdings it was just too risky to continue so when reasonable buyout offers come along they are usually snapped up. This takes the profit, jobs and technology out of the UK which inevitably reduced the economic growth in this country when we could be a thriving technology centre.

“This is not the same in other countries – you only have to look at places like Silicon Valley, South-East Asia and Europe to see where the fantastic breeding grounds are for start-up companies.”

Brexit concerns

Nowhere is the fear of Brexit being felt more than in London, home to the majority of the UK’s tech industry. In the lead up to both the EU referendum and the London Mayoral election, the community was keen to make its feelings regarding access to talent and investment known.

“Today’s comments from CES show that the UK government needs to do more to ensure that our tech sector is competitive internationally,” Russ Shaw, founder of Tech London Advocates, told Silicon.

“While the new National Productivity Investment Fund is a step in right direction, government policy must go beyond financial support and do more to build our brand abroad.

“Government policy must highlight the successes of the UK tech industry and encourage cooperation and collaboration between UK companies and their international counterparts.

“We need to redouble our commitment to welcoming the world’s best entrepreneurs and tech workers to the UK in the wake of our vote to leave the EU, and build relations with emerging markets. The UK tech sector must continue to engage with a global ecosystem of investment that facilitates growth and innovation.

“We do not yet have the deep pockets of California’s investment community, and foreign direct investment allows us to close the gap and compete with Silicon Valley.”

It’s unreasonable to assess the government’s commitment to the sector based on its presence at a single event and many firms are grateful for the assistance they have received in the past.

But when the event in question is one of the industry’s largest, the lack of a visible presence would appear to undermine any grand ambition, especially at a time when Brexit is causing such uncertainty and many startups are considering a move to Berlin or elsewhere.

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