Will tech founders welcome a new Labour Government? Whilst ‘technology’ is not one of the Labour Party’s five missions, it mentions ‘technology’ and ‘innovation’ more than any other party manifesto suggesting it will be at heart of the government’s push to improve public services, increase productivity and rebuild the UK’s economy.
Simon Wax, a Partner in the Tech and Media team at the accountancy firm Buzzacott comments. “All political parties have promised to make the UK a tech powerhouse, yet the last few years have presented tech founders with serious challenges – an uncertain economic environment has hampered M&A activity and an increasingly tough narrative on immigration has made it all but impossible to recruit the best overseas talent. “Concerns surrounding a possible increase to capital gains tax by the Labour government are worrying, but we believe tech founders will welcome the new Labour government. “It has made strong promises to commit significant investment in clean and environmental tech, it is offering clarity around R&D and to leave corporation tax and personal taxes unchanged. And it is promising a commitment to securing solid trade deals in key service sectors. “But tech founders will be watching the Autumn statement closely to see if the government live up to its manifesto promises.” What has the Labour government promised the tech sector? Simon summarises. “The creation of a new Regulatory Innovation Office to help tackle a range of digital problems to build upon the Online Safety Act in areas such as regulation for companies developing AI and machine learning models as well as banning harmful deepfake content. “A commitment to putting R&D funding cycles on a 10-year footing and promises to simplify the government procurement processes to support innovation. The party has also promised to work with startups and university spinouts to ensure that they have the capital they would need to scale. “The use of AI to help fix the NHS: The plan includes a range of measures designed to digitise and transform the NHS, including the digitisation of medical records and use of AI technology in areas such as diagnostics testing and faster approvals for medicines and new technologies. “And finally, a National Data Library to bring together existing research programmes and help deliver data-driven public services.”IMI Response As The Labour Party Receives Mandate To Lead Government
