Gerard Grech, managing director, Founders at the University of Cambridge and former founder of Tech Nation
“Despite its achievements, the UK still trails the US in critical technologies like AI, quantum, and climate tech, and the gap is widening. We must pivot from playing catch-up in existing fields to having the conviction to lead in emerging tech fields, leapfrogging the current tech race.
“The government’s commitment to R&D is crucial, especially proof-of-concept funding to move research from lab to market, building infrastructure to support interdisciplinary lab work and innovation hubs, and anchoring private specialised funds to back breakthrough technologies. This budget offers a step in the right direction with funding dedicated to core research and life sciences, but real tech leadership demands trade-offs in a world where tech is increasingly being geo-politicised.”
Peter Turner, COO, TeamViewer
“It was interesting to see the lack of AI investment in today’s Autumn Budget, as it fails to reflect the growing role AI plays in transforming productivity and skills development across the UK. The expected tax incentives and expanded digital infrastructure would not only accelerate these gains but ensure that AI’s productivity potential reaches every sector, so hopefully this will be addressed in the near future.
“The Budget also 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.”
Russ Shaw CBE, founder, Tech London Advocates and Global Tech Advocates
“If economic growth is truly the government’s goal this Parliament, protecting the UK’s start-up ecosystem is essential. The rise in capital gains tax risks stifling investment at a time when we need it most. Evidence from the US shows that higher capital gains deter start-up funding, which could directly contradict the government’s growth ambitions.
“Britain’s entrepreneurs are key to our global competitiveness, bringing vital investment and pioneering solutions in sectors like healthcare and green energy. Dissuading this investment risks slowing our progress and weakening the UK’s reputation as a top innovation hub. Higher CGT could drive talent and capital elsewhere, just when we need them to power job creation and economic resilience.
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“The government’s record £20 billion for R&D and £950 million in skills investment are promising steps, especially with Skills England’s launch and the Growth and Skills Levy revamp. But while these investments are crucial, tax policy that hampers innovation could undercut their impact.”
Steve Hare, CEO, Sage
“Today’s Budget introduces significant challenges for UK businesses, especially SMBs, who will face the impact of rising employer National Insurance contributions and minimum wage increases in the months ahead. Many businesses, however, will welcome the longer-term certainty and clarity provided, allowing them to plan and adapt effectively.
“Now, more than ever, SMBs need to leverage digital tools to boost productivity and profitability. I’m encouraged by the Government’s commitment to the digital economy with initiatives like Making Tax Digital and e-invoicing. These are vital steps toward building a resilient, future-ready economy.”
Cherry Freeman, founder and general partner, Hiro Capital
“To build a successful tech company, you need to be part of a positive, dynamic, forward-looking ecosystem. The UK and London have long attracted talent and capital, which has led to the creation of genre-defining tech companies. But as an investor, I would now like to see the focus shift away from tweaking the tax system to really fundamentally how we drive growth.
“We talk about entrepreneurship, but we also need money, we need investment because one of the ways to stimulate early-stage entrepreneurship is to have capital flowing into those businesses. The UK Government wants to enable growth, then we have to ensure the foundations are there to encourage entrepreneurs and encourage capital so the UK can remain a global centre of innovation.”
Ed Bradley, CEO and founder, Virtualstock
“Keir Starmer’s ‘harsh light of fiscal reality’ has shone through for retail businesses. With high inflation and increasing tax burdens, retail is a tough (but still brilliant) business to be in. It contributes over £100bn annually to the country’s GDP. That’s why it’s pleasing to hear that the industry has, at last, been granted the business rate relief it desperately needs. That said, there’s another way the government can support retail businesses – through tech investment.
“Rachel Reeves’ apparent lack of tech investment could negatively affect the retail industry. Technology is critical for optimising supply chains, reducing inventory holding costs, and improving productivity. With concerns around the ‘death of the high street’, embracing digital transformation is crucial for survival and boosting the UK economy. Not to mention that amongst consumers, there is a growing demand for agile, eCommerce-driven solutions. It’s tech and not just tax that the government must think about.”
Simon Phelan, founder and CEO, Hometree
“It’s great to see consideration in the budget for clean energy and green hydrogen projects. All this will contribute to enabling the UK to become a renewable energy superpower, a much-needed step that will enable us to increase our energy security as well as meet our net zero targets.
“However, 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.
Mark Stokes, CEO, Magdrive
“While the Government is focused on black holes of the financial variety, it was important it didn’t neglect the UK’s space sector in today’s Budget. Thankfully, there were positives for the growing industry. For R&D-intensive industries like space, the business tax roadmap allows us to prepare more effectively for the future, and R&D tax credits enable us to execute our long-term plans.
“Balancing fiscal responsibility with support for innovation is key. While the government’s commitment to R&D is essential, it’s equally important to make sure that fiscal policies do not hinder the scalability of the space sector beyond R&D, which is worth over £17 billion a year to the economy. We must hope that in future Budgets the government is more robust in its policies to support UK space advance as a global leader.”
Santosh Sahu, founder and CEO, Charac
“The Chancellor’s support for small businesses, as well as research and development, is welcome, yet tax raises for high-net-worth individuals, who are often pivotal investors in early-stage companies, may drive them out of the UK. Higher taxes on capital gains, for example, may lead these investors to seek out other, more favourable markets, which could ultimately stifle the flow of funding critical to the UK’s vibrant startup ecosystem. This shift would particularly affect high-growth sectors like healthtech, where access to capital is essential to scale innovative solutions that contribute to both the economy and public health.
“To sustain and build upon the UK’s reputation as a global innovation leader, it’s crucial that Labour continues to foster a regulatory environment that is conducive to startups. Their backing for VCT and EIS schemes will provide tax incentives for entrepreneurs to invest, facilitating access to capital for innovative startups. Supportive policies and regulatory frameworks in these areas will help offset any adverse effects of tax changes, ensuring that the UK remains a competitive destination for talent, capital, and breakthrough ideas.”
Fraser Stewart, co-founder, Lyfeguard
“Labour repeatedly outlined in their manifesto that they would not raise Income Tax, NI or VAT but clearly, this promise did not cover employers’ National Insurance payments. This change will be felt hardest by small businesses who will feel the direct impact of this increase in tax contributions.
“However, the Business Tax roadmap is an encouraging move from Reeves, enabling businesses to understand Labour’s direction of travel with sufficient time to plan for what might be coming. What we need now is a growth roadmap, with Labour demonstrating a clear commitment to SMEs within the UK.”
Stuart Munton, group operations director, AND Digital
“The Introduction of the Data Use and Access Bill marks a pivotal moment in harnessing the power of data to enhance both public services and economic growth. Data is increasingly becoming a cornerstone for both public and private sector innovation and is driving efficiencies that were once unimaginable.
“But while it presents significant opportunities for innovation and efficiency, it will require strict security considerations and skilled professionals to manage data responsibly and protect privacy. By implementing robust security measures, ensuring data transparency and upskilling the workforce to handle data ethically, businesses will thrive under this new legislation.
Dr. Andrea Cullen, CEO and co-founder, CAPSLOCK
“The policies in this year’s Autumn Budget fell short of truly solving the deeply ingrained challenges facing the UK’s cyber security resilience. Policies such as Skills England, which was briefly mentioned in the speech as part of the seven pillars of growth, will do little to solve the severe talent shortage and lack of diversity seen in the sector. The Budget failed to move beyond its traditional, top-down allocation of resources and superficial initiatives. Instead, it needed to focus on long-term planning and investment that addresses the root causes of the skills gap.
Tony O’Sullivan, CEO of RETN
“It’s certainly a step in the right direction for telecoms that the UK government has pledged over £500m for digital infrastructure over the coming years. We are at a pivotal moment in network connectivity globally, and to be fully transparent, this industry is not equipped to meet current demands.
“With this commitment from the government, the UK telecoms space now has the opportunity to lead the charge in combatting these threats if it heeds these lessons. Collaboration across stakeholders – policymakers, telecom providers, and technology leaders – will be essential to turning financial commitment into a transformative force connecting Britain to the whole world.”
