The 2024 Autumn Budget – Labour’s first in 14 years – certainly turned heads. In many UK tech circles however, it turned heads not because of what was there, but what wasn’t.

As expected, there’s a fascinating spectrum of opinion, with plenty guarded optimism and caveated criticism.

In this piece, we’ve gathered views from 12 UK tech leaders working in different industries/verticals that have a stake in the health of the industry to attempt to get idea of the general sentiment towards the Budget.

Opportunities and Growth in the UK Tech Sector

Jeff Watkins, CTO at CreateFuture, sees the Autumn Budget as a substantial opportunity for the UK tech sector, especially given the government’s ambitious targets. Reflecting on the Chancellor’s mandate for a 2% efficiency and productivity improvement.

Watkins noted that these goals could be achieved through more effective tech use, streamlining and integrating vital services to benefit both the public and private sectors.

Highlighting the government’s “modern industrial strategy” and “seven growth pillars,” Watkins expressed optimism for organisations specialising in AI, cloud, and digital transformation, who might now have greater confidence in growth opportunities.

“The move to maintain record R&D funding to harness the UK’s science and tech base is certainly welcome news,” he said, particularly alongside the “Skills England” initiative aimed at tackling the digital skills gap.

Meanwhile, Dave Moore, CEO, Pragmatic Semiconductor, underscored the promise for sectors like advanced manufacturing, saying: “The Autumn Budget, coupled with the forthcoming Industrial Strategy, shows promising signs of the government prioritising growth in the advanced manufacturing sector.

“However, for UK companies to fully realise their growth potential and reinforce the UK’s position as a global technology and manufacturing leader, there are some specifics required in the forthcoming Industrial Strategy.

“For example, offering proportionate incentives for capital investment by innovative semiconductor manufacturers would help level the playing field versus other geographies and serve to accelerate the rate and level of private investment.

However, not everyone agreed that the statement met the mark entirely. Greg Hanson, vice president at Informatica, pointed out that more could have been done, stating that “The UK is at risk of missing a once-in-a-generation opportunity to lead the wave of AI adoption globally.  

“Companies have been patiently waiting for greater direction on how emerging technologies can be responsibly leveraged for benefit. And while digital technologies are at the heart of the UK’s vision for a modern industrial strategy, the absence of any new investment in research or infrastructure for emerging technologies like quantum or AI is glaring.”

Green Tech and Sustainability Initiatives

In the realm of green tech, enthusiasm mingled with cautious optimism.

Stuart McLachlan, CEO of Anthesis, commended the National Wealth Fund as a positive step to catalyse green investments, but his positivity came with a huge caveat.

He said: “The confirmation of the National Wealth Fund offers hope, signalling the new Government’s commitment to stimulating green investment. Its blended finance approach, where the Government shoulders initial investment risks, could unlock significant private capital in high-growth sustainable areas, crucial to achieving a resilient and efficient sustainable transition. 

“However, this positive step must be viewed within a broader fiscal landscape that I fear currently gives businesses less confidence to make bold green investments.

“We simply will not meet our national and international targets if UK businesses do not feel adequately supported to go after them with energy and enthusiasm. It is essential that this Government, going forward, recognises that it is the private sector that will lead the charge on our net zero transition.”

Simon Phelan, CEO of Hometree, echoed this, emphasising the need for renewable energy to play a central role in the UK’s climate strategy.

He stated that “It’s frustrating to see that the government is still not tackling the fundamentals of the electricity market, which are holding back millions of people from generating their own renewable energy through solar panels and heat pumps.

“While electricity is nearly five times more expensive than the cost of gas, homeowners don’t want to switch to heat pumps because they seem more expensive. The spark gap – the difference between the cost of electricity and gas – makes us the most expensive country for electricity in Europe. 

“We will never be able to reach our climate targets if we continue to rely on fossil fuels to heat our homes, an energy source that costs homeowners more in the long term. To truly become a renewable energy superpower we need to remove gas heating from our homes and closing the spark gap is critical to achieving this.”

Talent and Skills Development in Tech

Tech leaders also voiced concerns about skills development, a persistent issue in the sector.

Karen Meechan, CEO of ScotlandIS, described the ‘Skills England’ initiative as “a step in the right direction,” but warned that devolved nations, like Scotland, require comparable support to ensure balanced talent growth across the UK.

She said that the budget was one of “mixed implications for the Scottish tech sector.”

“While it was encouraging to hear there will be a focus on economic stability, it was disappointing to see measures introduced that could have a detrimental impact on the sector’s ability to thrive in the next 12 months.

“For instance, despite an increase in employment allowance, the overall impact of the changes to national insurance contributions should not be underestimated. It’s a move that will make it more difficult for Scottish tech businesses to compete for the very best talent from both the UK and further afield and could curtail the growth of some or our most ambitious companies.

“On a more positive note, it was good to see additional details on the ‘modern industrial strategy’ and a focus on increased funding to support innovation and R&D. In particular, it was encouraging to see continued backing for Glasgow’s Innovation Accelerator Programme confirmed.

“Some of the commitments made to improving education appear to be good news for the overall pipeline of skilled tech workers and it was promising to see a broader pledge to unlocking the potential of the devolved nations. However, we will need to wait and see the Scottish budget later in the year before we know how effectively the additional Barnett Consequential funds will be used when it comes to supporting Scottish technology businesses.

David Shepherd, UK country manager at Check Point Software, broadly echoed this sentiment, stating that “over the coming weeks and months, it will be interesting to see how IT upskilling is factored into the government’s education investment plans, as announced in today’s Autumn Budget.  

“The reality is that although the digital revolution has been ongoing for years, the IT skills gap is widening. With consequences for all industries – from engineering to law, financial services to healthcare – as well as future employees. The next generation needs to be digitally fluent to ensure their future success. Whether they pursue an IT career or not, these skills allow people to leverage the right tools, adapt to evolving technologies, and unlock their full potential.

“What’s more, digital literacy promotes productivity and safety. It safeguards individuals from online threats, such as AI-generated misinformation and cyber threats, and equips them to harness the power of AI responsibly – at work and in their personal lives. 

Tax Policies, Funding Gaps and… Where Was Cybersecurity?

The tech sector’s reaction to tax policy was largely one of caution. Laurent Descout, CEO of Neo, pointed to the impact of Capital Gains Tax increases, which they believe “risks undercutting vital support for start-ups at a time when they need it most.”

“This coupled with the national insurance hike represents a significant blow to businesses. Such moves discourage essential investment in start-ups, threatening their growth trajectory, IPO prospects and the jobs they create.”

Silvija Krupena, Director of the Financial Intelligence Unit at RedCompass Labs, voiced her disappointment over a lack of government-obligated accountability for social media firms, saying that she was “Disappointed there was no mention of plans to hold social media and technology firms accountable for the fraud that starts on their platforms. True change requires a united front across social media and technology platforms, banks, regulators, and law enforcement.

“The Payment Systems Regulator’s recent new rules may protect consumers from financial loss, but they neither stop fraud nor solve the underlying problem. It’s time for the government to step up and realise that the onus should not be solely on banks and payment providers when it comes to stopping fraud.”

One of the most glaring omissions from the budget for many, was a lack of any specific mention of cybersecurity.

Highlighting the cybersecurity funding gap, Jamie Moles, senior technical manager from ExtraHop, said: “There was no mention of cybersecurity funding in Rachel Reeves’ Budget announcement, raising serious concerns about the UK’s resilience and understanding of the current security landscape. 

“Digital threats are escalating by the day and our dependence on secure networks is deeper than ever. This will only get worse with Reeves’ promise to improve public services though the adoption of technology. Failing to prioritise cybersecurity weakens our defences and leaves us vulnerable against increasingly sophisticated cyber-attacks.

“Recent incidents like the Synnovis cyber-attack affecting London hospitals has highlighted just how vulnerable essential services are, and how costly these weaknesses can be to public safety and trust.

“Without a dedicated commitment to cybersecurity, the UK risks lagging behind in securing its critical national infrastructure against emerging threats, potentially impacting public services that the Labour government desperately wants to stabilise. Meaningful investment would allow the nation to build a resilient defence, strengthening public trust in the safety and stability of essential services.”

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Echoing this sentiment, but within the context of AI, Peter Turner, COO of TeamViewer, stated that “the Budget didn’t place emphasis on security and regulatory clarity which is critically needed to address concerns highlighted by our research – 79% of tech respondents flagged AI security risks, particularly around data handling, as a significant issue.

“Support for secure AI adoption is essential for fostering responsible growth, empowering organisations to innovate confidently while managing risk. With investment in both digital infrastructure and security, the UK would be well-positioned to lead in AI-driven productivity, enabling sustainable growth and economic resilience.”

Connectivity and Regional Development

On the connectivity front, there was a positive outlook, with Sachin Agrawal, UK Managing Director at Zoho UK, spotlighting broadband expansion as necessary move to level the playing field

She said: “It is a welcome sight to see the UK government investing £500 million to drive progress in delivering reliable fast broadband and mobile coverage across the UK, including in rural areas. Businesses in rural areas play a vital role in unlocking local economic growth and more effectively distributing wealth across the country, and that requires suitable connectivity.”

“The budget is important to enable policies to help solve the growing regional divide. However, businesses also have a large part to play in promoting economic distribution through their strategy and location.”