Technology
Labour's 2024 Election Win: Implications for the UK Tech Sector
What Could a Labour Government Mean for the Tech Sector?
Having now been confirmed as the winners of the snap July 2024 election, winning over 410 seats, the Labour party has been given a huge mandate to govern. As the organisers of the DigiGov EXPO taking place at Excel London on the 24-25th September we wanted to look at what this could mean for the tech sector, and particularly those suppliers selling digital and technology products and services into the public sector.
Throughout these manifesto pledges it is clear to see that technology features as a central plank through all the party’s commitments from the NHS to cyber security to the economy with the Labour manifesto mentioning technology more than any other and including numerous technology focused policies.
Key Technology Policies announced in the Labour Manifesto Include:
‘Delivering growth and raising productivity depend on fresh thinking and new ideas. Britain has many cutting-edge businesses, but innovation needs to be converted into commercial success in every corner of our country’ (Labour Party Manifesto, June 2024)
‘DSIT will become the digital centre for government’ – Peter Kyle, Shadow Science, Innovation and Technology Secretary and expected to keep this role under within Starmer’s first cabinet has stated that he wants the digital centre for government to be responsible for “delivering common platforms and reforming roadblocks to data exchange across the public sector”
Creation of a new Regulatory Innovation Office to help regulators update regulation, speed up approval timelines, and co-ordinate issues that span existing boundaries
Aim to double the size of the UK’s co-operative and mutuals sector. We will work with the sector to address the barriers they face, such as accessing finance
Modernise HMRC to tackle tax avoidance by investing in new technology and building more capacity
Artificial Intelligence (AI)
Ensure the safe development and use of AI models by introducing binding regulation on the handful of companies developing the most powerful AI models and by banning the creation of sexually explicit deepfakes
Introduction of an industrial strategy that supports the development of the Artificial Intelligence (AI) sector and removes planning barriers to new datacentres
Industrial Strategy and R&D
Establishment of an Industrial Strategy Council, on a statutory footing, to provide expert advice
We will also update national planning policy to ensure the planning system meets the needs of a modern economy, making it easier to build laboratories, digital infrastructure, and gigafactories.
Creation of a National Data Library to bring together existing research programmes and help deliver data-driven public services, whilst maintaining strong safeguards and ensuring all of the public benefit
Scrapping of short funding cycles for key R&D institutions in favour of ten-year budgets that allow meaningful partnerships with industry to keep the UK at the forefront of global innovation
Work to simplify the procurement process to support innovation reduce micromanagement with a mission-driven approach
Development of a ten-year infrastructure strategy, aligned with an industrial strategy and regional development priorities, including improving rail connectivity across the north of England. The strategy will guide investment plans and give the private sector certainty about the project pipeline
Data and Online Safety
Explore further measures to keep everyone safe online, particularly on social media, and expand fraud strategies to tackle online threats.
Create a National Data Library to bring together existing research programmes and help deliver data-driven public services, whilst maintaining strong safeguards
Build on the existing Online Safety Act to enhance online protection for all users, particularly when using social media
Cyber Security
Considering recent cyber attacks and the general safety and security threats Labour will conduct a Strategic Defence Review within the first year of government and outline a pathway to 2.5% defence spending
Develop a comprehensive cyber defence strategy to protect critical infrastructure.
Ensure the UK is fully prepared to deal with hybrid warfare, including cyber-attacks.
Clean Energy
Make Britain a clean energy superpower to cut bills, create jobs and deliver security with cheaper, zero-carbon electricity by 2030, accelerating to net zero
Reward clean energy developers with a British Jobs Bonus, allocating up to £500 million per year from 2026
Introduction of National Wealth Fund to support the most energy intensive sectors to decarbonise
Broadband and 5G
Make a renewed push to fulfil the ambition of full gigabit and national 5G coverage by 2030
Conclusion: What Could all this Mean for UK Digital and Tech Suppliers?
It is clear to see from this manifesto that Labour is placing technology at the heart of a lot of its commitments and that should be cause for optimism amongst those working within the tech sector. It is clear to see that as you go through the manifesto that this government wishes to utilise the transformative power of technology to enable it to deliver large swathes of some of it’s biggest manifesto promises. Take the NHS for example, technology is at the heart of Labour’s key waiting times pledge and they acknowledge that it will be impossible to deliver without key investment in new technologies.
This kind of attitude towards technology and the tech sector is prevalent across the Labour manifesto from clean energy to public service reform to the use of Artificial Intelligence. It includes numerous large scale funding commitments such as a £1.5bn investment in new gigafactories, £1bn investment in carbon capture technology and £500m for green hydrogen manufacturers.
This view is also backed up by sector experts with Tech UK stating that; “It’s worth noting that although technology isn’t one of Labour’s five key missions, it can be seen to run horizontally through all of the commitments. In the Manifesto, they suggest that technology is not just a means to grow the economy and improve productivity, but it is also a vehicle to solve some of the societal challenges that the UK faces.”
However, there are those within the sector who are perhaps more cautiously optimistic when it comes to the challenges facing the Tech Sector. Tech website theregister.com for example states that; “On tech investment, its plans seem laudable, but it remains uncertain whether they will stand the test of public spending decisions if the economy does not go according to plan. It is public sector IT projects that will present Labour with the most difficult terrain. IT projects can be the graveyard of efficiency ambitions, especially as the leadership already appears to have banked the savings. There be dragons, Sir Keir.”
Overall though the early signs are certainly promising for the Tech sector and as the government ramps up its plans in its first 100 days more funding announcements will be outlined. As and when these plans are announced we will be taking a further look at what this will mean for public sector digital and tech suppliers putting you in the best possible position to understand how this will impact your business. We want to work with you and help you win more business with this space so if you would like to get in touch and contribute to our blog series then please do reach out and let us know.
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