London needs the Conservatives to restore its tech crown
The Conservatives left London with more tech unicorns than France and Germany combined. Now Labour is quickly unravelling our legacy, writes shadow secretary of state for science, innovation & technology Alan Mak
I was dismayed – and angry – to read in CityAM that Paris has taken the UK’s “tech crown”. But I wasn’t surprised.
Labour’s failure to keep Britain competitive in the global race for tech supremacy means we’re at risk of becoming an innovation backwater: a second or even third-rate force compared to countries like France, Japan and Germany.
Last year’s decision by Labour to cancel the UK’s new national exascale supercomputer at Edinburgh University was a strategic misstep. This super-fast technology is vital to innovation, from drug discovery to advanced manufacturing. By withdrawing the £800m of funding provided by the Conservatives, the government weakened our ability to process vast datasets and develop next-generation AI. Restoring this investment is not a discretionary luxury. It is the bare minimum required to remain competitive.
The UK is closed for business under Labour
Similarly, Labour’s AI Action Plan offers plenty of lofty commitments about ethics and regulation, but very little in terms of actionable plans, delivery, funding, accountability or timescales. However, it does create two new quangos and more red tape, all damaging our entrepreneurial zeal. What Britain needs is a new UK Innovation Principle enshrined in law so that regulators must weigh the economic and societal benefits of new technologies and innovation against potential risks, rather than defaulting to precautionary bans or burdensome approvals.
Beyond AI, the government’s broader track record on innovation has been underwhelming. For example, when Labour ministers walked away from a £450m deal to expand Astrazeneca’s Merseyside vaccine facility, the message sent to global investors was stark: the UK is closed for business.
In Parliament, the government is even making a total mess of its own Data Bill, especially when it comes to striking the right balance between supporting AI and protecting the copyrighted work of our creative industries. Last week, technology secretary Peter Kyle, in a grovelling, apologetic statement in the Commons Chamber, admitted “regret” at the way he’s handled the issue. This was after Sir Elton John called him a “moron” for the way he has handled two of our biggest sectors. It’s no wonder Kyle sounded utterly beaten when he begged MPs to “put this Data Bill behind us”, hoping everyone will simply forget how bad Labour is for our economy. They won’t.
London’s tech sector is being left behind
Labour needs to think again about how they support Britain’s tech sector – and act quickly. Their Spending Review next month must immediately reinstate funding for the Edinburgh supercomputer. Simultaneously, ministers should commit to supporting the tech startups and workers hit by Labour’s National Insurance Jobs Tax and enshrine a new UK Innovation Principle in the next session of Parliament. Their AI Action Plan must be improved by including transparent milestones, costings and better engagement with the tech sector.
The rest of the world is racing ahead when it comes to tech, especially AI. The United States, European Union and China are pouring billions into AI research, supercomputers and talent development. Britain cannot afford to fall behind. It’s time for this government to move beyond rhetoric, restore our competitive advantage and listen to those who are building the future.
Conservatives left the UK with the world’s third biggest AI ecosystem, more tech unicorns than France and Germany combined, and a global reputation for innovation. We cannot afford to let Labour ruin Britain’s track record, and the next Conservative government will restore our tech crown. With the right policies in place, the UK can reclaim its place at the forefront of global innovation – and deliver the high-skilled jobs and economic growth that our country deserves.
Alan Mak MP is shadow secretary of state for science, innovation & technology