What will a Labour government mean for the UK tech sector?

Technology is not at the forefront of many of the Labour policies in its manifesto, but nonetheless, the party did actually include many mentions of the phrases technology and innovation, suggesting that the party will potentially be making moves to improve public services, increase the nations productivity, and rebuild the economy by utilising technology such as AI and quantum.

In speaking on the tech sector and what this could mean for the next generation of tech founders, Simon Wax, Partner in the Tech and Media team at the accountancy firm Buzzacott comments: “All political parties have promised to make the UK a tech powerhouse, yet the last few years have presented tech founders with serious challenges – an uncertain economic environment has hampered M&A activity and an increasingly tough narrative on immigration has made it all but impossible to recruit the best overseas talent.

“Concerns surrounding a possible increase to capital gains tax by the Labour government are worrying, but we believe tech founders will welcome the new Labour government.

“It has made strong promises to commit significant investment in clean and environmental tech, it is offering clarity around R&D and to leave corporation tax and personal taxes unchanged. And it is promising a commitment to securing solid trade deals in key service sectors.

“But tech founders will be watching the Autumn statement closely to see if the government live up to its manifesto promises.

“The creation of a new Regulatory Innovation Office to help tackle a range of digital problems to build upon the Online Safety Act in areas such as regulation for companies developing AI and machine learning models as well as banning harmful deepfake content.

“A commitment to putting R&D funding cycles on a 10-year footing and promises to simplify the government procurement processes to support innovation. The party has also promised to work with startups and university spinouts to ensure that they have the capital they would need to scale. 

“The use of AI to help fix the NHS: The plan includes a range of measures designed to digitise and transform the NHS, including the digitisation of medical records and use of AI technology in areas such as diagnostics testing and faster approvals for medicines and new technologies.

“And finally, a National Data Library to bring together existing research programmes and help deliver data-driven public services.”

Lack of cyber security

It is no secret that the UK is susceptible to cyber attacks, over the past decade we have witnessed countless attacks on banks, the healthcare system, UK businesses, and even the electoral commission. So, it comes as some surprise that there was seemingly very little mention of anything to do with cybersecurity.

Commenting on this, Al Lakhani, CEO of IDEE, says: “For all the election noise, cyber security was absent. In a way this is understandable; there are many other social and economic issues to focus on when trying to woo voters. But as the dust settles on this election and a new party comes to power, continuing to overlook cyber security would be a grave mistake.

“The electoral commission: hacked. NHS hospitals: hacked. Countless UK businesses: hacked. How many attacks are too many? With Labour coming into power for the first time in 14 years, a comprehensive strategy to strengthen the UK’s cyber defences is urgently needed. The EU is implementing the NIS2 directive, why does the UK lag in securing its digital infrastructure? It’s time for the government to wake up, smell the coffee and develop a plan to change this.

“But businesses must also act. It’s high time for a radical shift away from outdated security methods and 1st generation MFA. We need state-of-the-art, same-device MFA 2.0 solutions to crush phishing and password-based attacks. No more delays – let’s safeguard the UK’s digital landscape for good.”

Utilising the emerging technology landscape

The UK is in a strong position when it comes to emerging technologies such as quantum or AI. If Labour want to make the most they can from the tech sector, then hitting the ground running with these emerging technologies is key.

British Safety Council’s Chairman Peter McGettrick said: “New and emerging technologies not only open up new prospects for greater prosperity and efficiencies, they can also help to protect people and prevent risks, but we must make sure we regulate and govern them well. The new Government must remember that wellbeing is broader than just mental health, and we also want to see more support for training which supports people’s health and safety, while we upskill our workforce so they can make the most of new opportunities. Labour set out positive and imaginative policies in their manifesto on work, technology and growth and we stand ready to work with the new Government for the benefit of people’s health, safety and wellbeing across the UK.”