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THE BUDGET - WHAT DOES IT MEAN FOR THE UK TECH INDUSTRY?

Thursday 9th July 2015

Yesterday George Osborne delivered the summer budget , after what was a promising announcement for the digital community in March, in this blog we will discuss the plans mentioned in this month’s budget and what it could potentially mean for the UK tech industry.

DIGITAL ECONOMY CENTRES

In yesterday’s budget announcement George Osborne announced that £23 million will be invested in six ‘ Next generation digital economy centres’ These include University college London, Swansea, Newcastle, Nottingham, York and Bath. This will give these hubs the opportunity to thrive, potentially create new jobs and create more chances for technology advancements in the UK.

TAXATION

Changes in taxation could also mean good things for growing tech businesses. The new budget pledges that small businesses will be able to  employ up to four people full time on the national minimum wage, paying no national insurance tax at all.

Corporation tax is also set to be cut to 19 percent in 2017 and 18 percent in 2020 which will have the capacity to benefit over one million UK businesses.

GOVERNMENT DIGITAL SERVICE



With an increase in focus on ‘smart cities’ and urban efficiencies in recent years. The budget announced seed funding will be allocated to the cabinet office to deliver redesigned user friendly public services fit for the digital age.

HOWEVER...

Despite some of the positive that is set to come from the reality of the summer budget, many argue that the digital industry was bypassed when there was a heavy influence mentioned in the previous budget delivery back in March where significant investment in public Wi-Fi, 5g, driverless cars and IoT was discussed.

Tech CEOs have spoken of their concern over the new budget for the tech industry. With some describing it as ‘a non tech’ budget.

Tech leader Lawrence Jones of  UKtech states that Digital infrastructure commitments were notable by their absence.‘’Businesses are going to need something from the government if they are going to take a risk and make big investments in improving connectivity. I didn’t hear anything like that in this budget’’.

Investment in transport service was highlighted in the most recent budget but many believe the priority shouldn’t be the transport itself but the digital offering of the transport –“It’s all well and good talking about improving transport, but we’re increasingly depending on the internet for business communication. It needs investment from the government and it needs it sooner rather than later.”

What are your thoughts on yesterday’s budget announcement? Should the tech industry be nervous or excited? We’d love to hear your thoughts.

Tweet us @amsourcetech.

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