Britain stands on the brink of becoming a global sci-tech superpower. Yet, the Treasury’s current policies are seen as a significant hindrance to this transformation.
Despite a robust research base and burgeoning startups, the UK’s presence in the global sci-tech market remains minimal. Intervention from the highest levels of government is crucial.
The Current Economic Landscape
The Chancellor is preparing to make hard choices on tax, spending, and borrowing, reflecting the poor economic legacy left behind. While some argue the economy is growing, public sector pay crises remain an issue.
Lack of Dominant Tech Firms
In multiple tech sectors, British representation is either painfully thin or nonexistent. Turning these assets into a ‘global science and technology superpower’ remains elusive.
The Challenge of Staying Competitive
Even in other sectors like pharmaceuticals and chemicals, British companies are few and far between, indicating a broader issue of competitiveness.
The Impact of Foreign Takeovers
Examples include DeepMind to Google and Arm to Japan’s SoftBank, where the founders had little control over their fate due to insufficient voting shares.
The Importance of Nationally Domiciled Companies
The void left by the lack of such companies in the UK puts additional pressure on startups to rely on successive rounds of venture capital.
Stock Market Challenges
Poorly valued public shares inevitably lead to undervalued private shares, making founders more vulnerable to foreign takeovers.
Government’s Potential Role
Another proposal is to consolidate the myriad of small pension funds into superfunds capable of taking risks and increasing pension contributions to boost domestic investment.
The Treasury’s Reluctance
Such decisions highlight the Treasury’s reluctance to support the tech sector fully.
Britain has the potential to be a global sci-tech leader. However, substantial policy changes are needed, particularly from the Treasury.
Investing in tech and fostering homegrown talent is crucial for the UK to achieve its aim of becoming a sci-tech superpower.