TechUK has published its Growth Plan ahead of the UK chancellor’s Autumn Budget, outlining how the government can boost economic growth via its tech sector.

The technology trade association says the UK is on track to become the biggest single sector contributing to GVA (gross value added) due to its size and faster growth rate than other industries in the wider UK economy.

Additionally, virtually every other business sector has a ‘growth plan’ predicated on greater digitisation and the use of new and emerging technologies such as AI, quantum, and automation, meaning that support for the industry is critical.

As the UK faces an unprecedented set of challenges, including slow economic growth and labour shortages, it is crucial that the new government recognises the tech sector’s ability to establish sustained growth, aimed at making the UK the best place to start, scale, and run a technology business.

TechUK postulates that decisive action taken by the government could create up to 678,000 new tech jobs across all regions of the UK, raise £40 billion for the government through AI and digital technology, and ensure the UK leads in the technologies that will drive global economic growth in the next decade.

“The Government is currently grappling with multiple challenges, from boosting economic growth and supporting public services to tackling climate change,” Julian David, CEO of techUK said. “Despite tight fiscal conditions, investing in the tech sector can yield substantial returns.

“We can seize this opportunity by recognising the tech sector as a driver of growth and change, but this requires Government action to stay ambitious, keep up with technological advancements, and continue prioritising investment in research and innovation to tackle economic challenges.”

The Growth Plan is framed around three main initiatives, including building the right foundations, enabling competitiveness, and ‘shooting for the stars’ by capitalising on the UK’s unique advantages.

Building Foundations

To boost productivity and enable growth, TechUK says building the right foundations, including skills, digital adoption, infrastructure and investment incentives is vital.

This includes reforming the planning system to allocate billions to digital infrastructure across the UK, and improving the UK’s R&D tax credit to encourage more investment.

It also recommends the establishment of a digital adoption strategy aimed at SMEs to adopt AI and digital tools, with the goal of increasing digital adoption by 2030.

Further, techUK points to the creation of provisions to boost digital skills, hand in hand with creating a more diverse and inclusive tech sector.

Empowered Competition

The trade association recommends that a place-based approach to develop tech clusters would be most beneficial to supporting scaleups and startups.

It suggested reforming public processes for public procurement, and delivering on recommendations set out in the Harrington Review on foreign direct investment by working with the support for mayors and devolved governments.

TechUK also suggested following in Ireland’s footsteps by creating a connected hubs programme to create remote and co-working locations across the UK.

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Shooting for the Stars

This initiative centres itself on leveraging the UK’s economic growth opportunities through its advantages in net zero, AI and quantum.

This would include delivering a new AI strategy to unlock its full potential and raise the UK GDP possibly by 10.3%.

TechUK is urging the government to maintain its planned increase in the UK public research and development budget to support quantum and semiconductors, as well as use the regulatory innovation office to help commercialise emerging technologies.

It also wants the UK to create tailored scale-up support to help close the UK scaleup gap.

“This is a crucial moment for the UK to signal its commitment to investing in industries that will shape the global economy over the next decade,” David said.

“The Growth Plan presents practical examples of how the Government can build the right foundations for growth, empower the competitiveness of the economy and support the industries that will define the economy of the 2030’s.

“These ideas are backed by practical interventions that recognise the fiscal position the Treasury finds itself in, in the early stages of this Government.”