In recent discourse, notable tech leader Michael Gibson has drawn attention to an overlooked issue in the UK’s tech landscape.
The thriving potential of the UK’s ‘lost towns’ is at risk due to inadequate investment.
The Challenge of ‘Lost Towns’
The United Kingdom is home to numerous towns brimming with talent, yet these areas are often overlooked in favour of major cities. The term ‘lost towns’ refers to these regions which, despite their latent potential, suffer from a lack of necessary resources and infrastructure.
Michael Gibson, chair of Digital Lancashire, has emphasised that without appropriate investments, these towns may never fulfil their true potential in the tech sector.
Investment and Infrastructure: A Necessary Duo
One of the leading issues facing these towns is the prohibitive cost of office spaces in larger urban areas. For example, in Manchester, office space could cost £26 per square foot, whereas a similar space in a smaller town might only cost £10. However, the lack of development in these smaller towns means that such spaces are scarce.
Gibson points out that the lack of infrastructure investment leads to a shortage of available office space, forcing burgeoning startups to move to bigger cities, thus leaving behind a legacy of potential unrealised.
The lack of infrastructure not only affects availability but also the capacity for these towns to support high-skills, high-wage industries that are crucial for economic growth.
The Role of Clustering in Tech Growth
Clustering is a strategy where businesses of similar sectors are concentrated in a single locale, leading to robust knowledge sharing and growth.
Gibson cites examples like Auto Trader and AO, which were originally based in smaller towns but relocated to Manchester for better opportunities, highlighting the need for clustering in nurturing local tech industries.
Without addressing these issues, smaller cities could continually lose their high-value companies to larger, more developed urban centres, perpetuating a cycle of economic impoverishment.
Barriers to Retaining Talent Locally
Smaller towns struggle with retaining tech talent, which often seeks opportunities in bustling cities equipped with better facilities and networks.
Gibson believes that with enhanced local support, including from councils and universities, these towns could borrow funds to improve their infrastructure, thereby fortifying their local tech ecosystems.
The challenge, as he sees it, is not just about the availability of space but also about creating an environment that fosters innovation and growth.
Examples and Case Studies
Gibson’s company, Miralis Data, exemplifies this potential, being listed among BusinessCloud’s 51 Artificial Intelligence Innovators, it highlights the talent that exists in smaller UK regions.
Yet, even for successful businesses like Miralis Data, space is limited, and companies often queue for the few available offices, indicating a clear demand for more infrastructure investment.
Miralis Data’s own experience underscores a common issue: while they thrive in places like Lancaster, the lack of space may restrict their growth beyond current capabilities.
Potential Solutions and Future Directions
Gibson proposes that local councils and external bodies should leverage affordable borrowing costs to invest in infrastructure that supports tech clusters.
With proper investment, these towns could transform into thriving tech hubs, attracting businesses that contribute significantly to the economy.
Such strategic investments would not only prevent the exodus of companies but also place these towns on the map as viable alternatives to larger cities.
Vision for the Future
Investment in the ‘lost towns’ is not merely a regional concern but a national opportunity to expand the UK’s tech prowess.
To achieve long-term growth, it is imperative to look beyond immediate gains and focus on sustainable development that values all regions equally.
The conversation led by Michael Gibson brings to light a critical issue in the UK’s tech landscape.
Through strategic investments and infrastructure development, this challenge can also serve as a unique opportunity to harness untapped potential.