Leaders in the UK’s software industry are calling for increased government support, citing a “dreadful” track record of European software companies. The industry is seeking measures such as tax incentives and talent visas to bolster the sector.
What Happened: Over 120 industry leaders have joined forces to urge the UK government to provide more support for the software industry, Reuters reported citing a new policy document — published by industry body Boardwave.
The industry is seeking measures such as tax incentives and talent visas to improve the conditions for European software companies.
The call for government intervention comes at a time when Europe is struggling to scale up its homegrown tech companies, with many startups being forced to seek investment abroad as they expand.
The policy document highlights Europe’s poor track record of scaling software companies. The document points out that only one software-focused firm, Sage, is counted among Britain’s top 100 publicly-traded businesses, compared to dozens in the U.S.
Phill Robinson, the founder of Boardwave and a former executive at software giant Salesforce, recently shared a report with Britain’s technology minister Michele Donelan. In the report, he cautioned that mid-sized software companies had received significantly less government attention compared to Big Tech firms and trendy venture-funded startups.
“We do not agree with this assessment. Our tech sector is booming and outpacing European competitors at every turn. We consistently lead the continent, ahead of both France and Germany combined,” the spokesperson for the Department of Science and Technology said, according to the report.
Why It Matters: The UK’s tech industry has been facing a series of challenges. In January, major tech companies including Apple, Google, and Microsoft opposed the UK’s proposed surveillance laws, citing potential threats to data security and privacy.
On the other hand, the increasing integration of artificial intelligence in the workplace could lead to the loss of up to 8 million jobs in the UK. However, a report by the Institute for Public Policy Research suggests that a “jobs apocalypse” is not inevitable if the government takes appropriate action.
Meanwhile, Microsoft made its largest UK investment in November 2023, with a major focus on AI development. The $3.2 billion investment was for artificial intelligence infrastructure and training, marking the company’s largest investment in the UK since it started doing business in the country 40 years ago.
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