Tomorrow the Labour government will announce its first Autumn Budget since coming to power as it looks to lay down its vision and deliver on policies pledged during its election campaign.
Spokespeople including the Prime Minister have suggested tax reforms and spending policies which are likely to be delivered on Wednesday.
So what have tech business leaders made of the proposed reforms to capital gains tax, and expected long-term policies to make the UK a more attractive investment destination in the long-term?
Retaining UK tech entrepreneurs
Phil Kwok is CEO and co-founder of EasyA, which teachers developers how to build on the blockchain. A backer of junior UK talent, he says this is at risk if the government does not implement policies that support early-stage businesses.
“Labour will set out its vision to ‘future proof’ the economy. The first stage will be tax reform, the second, the long-term backing of industries like tech where the UK is globally renowned,” he told BusinessCloud.
“If the government sees tech as the bedrock of economic productivity and innovation, the approach seems clear – fostering an environment which encourages and nurtures these innovators so they can explore the full potential of all Web3 has to offer.
“Through my experience as a recent graduate, entrepreneur and CEO, we are sitting on a bank of rising talent. There’s a new generation of entrepreneurs with the creative minds and drive to pursue new innovations in Web3. It is all happening at an exciting time – Web3 and AI will change the way we work, so we need to be driving this dialogue.
“Any approach demands an agile mindset. For too long, there has been a degree of complacency, assuming traditional education paths like tertiary degrees will spur on tech innovation. Yet we face a digital skills gap – people are not being equipped with the digital skills required to engage with technologies that will define the future of work, like blockchain and AI. Being creative, and embracing new forms of education to complement the university degree process is vital.
“To be globally competitive, we need initiatives to support these young companies. We should be taking advantage of London’s reputation as a tech hub, which it has successfully built over the last two decades.
“Initiatives which bring together business leaders, investors, the public sector and academia will address this. The talent is there – it is up to us to tap into it.”
Alleviating financial pressures facing consumers
Jonny Combe, president & CEO of smart cashless parking app PayByPhone, sees the need for the government to alleviate the specific pressures facing consumers, particularly when it comes to the costs linked to driving.
“Drivers are bracing themselves ahead of the 2024 Autumn Budget. With potential for increases in fuel duty and the introduction of a pay-per-mile car tax, financial pressures are mounting. This government has been clear in its intentions to balance the books, meaning it’ll fall to drivers to alleviate their own fiscal burdens,” he said.
“For consumers, struggling with rising costs of fuel, planning tools offer transparency in fuel pricing and help drivers locate the cheapest fuel. Alternatively, if you’re an electric vehicle driver, mobile apps that locate charge points and pay for sessions all-in-one play a key role in addressing this. They help eliminate the need for multiple subscriptions and offer consumers information on energy usage and pricing.
“When increasing cost-of-living expenses, it is essential that the government support and signpost practical options to help relieve some of this financial pressure. Journey planning solutions are on hand to empower drivers in navigating the evolving driving landscape and manage rising costs.”
Invest to protect cybersecurity threats
At a time when the risk of cyber attacks is rising, Barry O’Connell, general manager of EMEA services at Trustwave, is keen to see cybersecurity featured in the chancellor’s speech.
“The Autumn Budget has the considerable challenge of rebooting the UK economy amidst a spate of tough fiscal conditions. Anticipated spending curbs and tax increases may create a quicker route to recovery than increased borrowing, although both are likely,” he said.
“It is crucial that these efforts are balanced with a longer-term view to create more encouraging conditions for innovation and growth. Key to this, given the increasing frequency and sophistication of cyber threats, is for the government to allocate appropriate resources towards enhancing our national cyber defences.
“Plans to incentivise UK technology companies, enhanced business tax relief for cybersecurity investments, and injections of public funding into critical cybersecurity infrastructures and awareness programmes would be welcome moves to help boost the UK’s fortifications against evolving threats.
“Getting the basics right is the first critical priority, and implementing proper cyber hygiene in an increasingly digital world requires government intervention. This would be an important step to ensure that we are prioritising investments that protect the NHS and other public services, and the thousands of people consequently impacted, from devastating cyber harm.
“Overall, the Autumn Budget presents an opportunity for the government to reinforce its commitment to a secure and resilient digital infrastructure, which is essential for protecting sensitive data and maintaining public trust in digital services.”
Make the UK a centre for AI excellence
With Keir Starmer making clear his ambition for the UK to become a centre of AI, Milo Constable, strategy principal at US-headquartered tech consultancy Slalom, sees now as a great chance for the new government to show initiative and truly help progress the sector.
“AI offers so much potential for the UK, but it will only drive benefits if the humans that use it are brought along on the journey,” he said.
“More than deregulation, what businesses need is financial support, nurturing of skills, raising awareness and increasing the competency within the talent pool to ensure workers are AI-ready. By doing so, the UK can get the right AI operations in place to deliver solutions effectively and efficiently for companies.
“The Budget and the recent National Wealth Fund could be critical in helping achieve this vision. In addition, setting up National AI Centres of Excellence, partnerships between private businesses and government with clear targets, would further improve the UK’s position on AI.
“Adopting AI is not the only challenge on the government’s plate. Expectations are being set by ministers that the current fiscal situation will require a harsher tax landscape. One area being explored is increasing Capital Gains Tax (CGT). This would be bad news for smaller, more entrepreneurial AI firms that need to be part of the AI transformation, especially if the Business Asset Disposal Relief (previously Entrepreneurs’ Relief) also becomes affected.
“To continue to champion AI, the government could instead freeze CGT for AI-related businesses to enable their critical role in adopting AI at scale.”
Use technology to deliver cost-efficiencies
Rhys Merrett, head of tech PR at The PHA Group, believes now is the opportune moment for the government to embrace new technologies and deliver better efficiencies.
“Labour has made it clear. This will be a tough, but necessary budget – one that will cover public spending gaps and lay down the foundations to achieve its long-term vision,” he said. “It’s a bold move, moving away from the political rhetoric of growth and prosperity that typically mars such announcements. Whether people will buy into this approach is questionable, particularly when Labour’s first 100 days has not won over public trust.
“A central theme will be efficiency, minimising expenditure and increasing outcomes. Leaving the economic approach to one side, the potential of new technologies like AI in achieving needs to be acknowledged.
“There is a hesitancy when it comes to government adoption of new technologies, but with the challenges facing public services like the NHS, the efficiency gains made through their use needs to be considered.”
