Tim Kay, Head of KPMG’s High Growth Technology Group outlines the reasons why the Chancellor should put supporting the UK Technology sector at the heart of his Budget next week.
“The Budget will provide a perfect platform for the Chancellor to outline measures that continue to boost and catalyse the long term opportunities that the technology sector offers UK plc, in the current economic climate.
“To date the Chancellor has taken many positive steps in supporting early stage companies via initiatives such as R&D tax credits, Patent Box and Entrepreneurs Visa. This continuity of support is vital, but I would really like to see announcements which focus on supporting high growth companies, such as the as the High Growth Segment which is due to be launched by the London Stock Exchange.
“Those tech businesses which have moved out of start up phase need help with funding and employing people. Whether this be a relaxation of the National Insurance requirements for high growth companies to help them bring talent onboard and reach a critical mass, or a clearer definition of the role of the Technology Strategy Board and giving them a clearer remit and process to help fund growth stage investments.
“The UK is already a great place to do business if you are a tech company of any size. We have a great mix of talented engineers, researchers and entrepreneurs. We have tech savvy consumers with good access to technologies that will support a digitally focused economy. We have a business population that is ready to look at new technology as a means of gaining a competitive advantage. We have in London, Cambridge and Manchester three ecosystems that can support world class companies.
“The Government must safeguard this reputation for being open for business through being very clear about its overall strategy. We need a consistent and long-term approach from government that lets us go out into the global marketplace and shout about the UK being open for business when it comes to existing and emerging technologies. The Budget will allow the Chancellor to harness this and do what they can to ensure that Britain is viewed as the long term home for entrepreneurs and businesses, a destination for European and global companies to come to and a good place to put your investment.“