The UK government has unveiled its new Digital Strategy, with a focus on growing the economy and creating more high value jobs.

The plan aims to cement the UK as a global tech superpower, building on its position as Europe’s leading destination for starting and growing digital businesses.

The UK’s tech industry has traditionally performed well globally. The UK brought in almost £7 billion of VC in the first quarter of this year, with the majority flowing into London.

With these figures rising to £12 billion for the year so far, the UK has secured its position as Europe’s leading tech investment destination, placing it behind the US and ahead of China on funding.

The UK tech sector raised more private capital and saw more public listings than any EU country in 2021. Not only that, UK tech companies have raised more VC this year than in all of 2020.

Revealed at the start of London Tech Week, the new UK Digital Strategy aims to build on the tech industry’s successes and unite the Government’s tech and digital policies into one unified roadmap.

Among its aims is creating a Digital Skills Council of tech leaders to tackle the skills gap, and a review of the UK’s large-scale computer processing capabilities.

With over 80% of all jobs advertised in the UK now requiring digital skills, employers say the lack of available talent is the single biggest factor holding back growth. Estimates suggest the digital skills gap costs the UK economy as much as £63 billion a year in potential GDP.

Estimates suggest the government’s approach to supporting and strengthening the digital economy could grow the UK tech sector’s annual GVA by an additional £41.5 billion by 2025 and create a further 678,000 jobs.

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There are six areas covered by the strategy to promote sustained digital growth.

• Infrastructure – Rolling out world-class digital infrastructure and a light-touch, pro-growth regulatory regime that protects citizens while encouraging both investment and innovation.
• Ideas and intellectual property – Stimulating innovation through research and development and growing the UK’s expertise in technologies of the future, including artificial intelligence, semiconductors and quantum computing.
• Skills and talent – Strengthening the tech talent pipeline with digital skills the economy needs at every stage from school to lifelong learning and a comprehensive suite of visas to attract the brightest minds from around the world.
• Financing digital growth – Encouraging UK capital including pension funds to be invested in British scale-ups to support long term growth and leading support for innovation through InnovateUK and the British Business Bank.
• A nationwide approach – Helping businesses in every region take up the latest technologies and spread the benefits of a strong digital economy across the country.
• Global leadership – Collaborating on international digital trade and tech governance systems centred around freedom and openness.

Digital Minister Chris Philp said: “The Digital Strategy is the roadmap we will follow to strengthen our global position as a science and technology superpower. Our future prosperity and place in the world depends on it.”

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