- With Britons due to head to the polls on July 4, tech executives are calling on the two main parties to promote economic growth, a flexible regulatory environment and a long-term vision that cements Britain’s position as a global leader.
- The next administration, they say, is likely to be one that favors the interests of fast-growing tech companies.
- Skills to enable us to better use large-scale language models and other next-generation AI tools, rather than allowing our understanding of those tools to fade and control us, should be a key focus of any government, top tech executives told CNBC.
LONDON — British tech executives and entrepreneurs want the next government to focus on promoting skills and growth-oriented fiscal measures to develop and use artificial intelligence.
Brits are due to go to the polls on July 4th.
Business has called on the two major parties to promote a long-term vision that will deliver economic growth, a regulatory environment that adapts to innovation and strengthen the UK’s position on the world stage.
They say the next government, whether it is Rishi Sunak or Labour leader Keir Starmer who becomes chancellor, is likely to be one that puts the interests of fast-growing tech companies first.
Skill development in the age of AI
One of the drives from British tech executives is to spur innovation in artificial intelligence and equip generations of British citizens with AI-centric skills.
Skills to enable us to better use large-scale language models and other next-generation AI tools, rather than allowing our understanding of those tools to fade and control us, should be a key focus of any government, top tech executives told CNBC.
Promoting growth and prosperity through new technologies such as AI was a major theme at Salesforce’s World Tour London technology conference, which was held for several major customers and partners by Salesforce, a major U.S. enterprise software company.
At a press conference on the sidelines of the event, away from the costumed mascots – Einstein and Astro the Raccoon – who were guiding users through Salesforce’s customer relationship management tools, the company’s UK representative detailed what he wants from the next government.
“My specific appeal to any government is that one in 10 of us feel AI-enabled. Innovation is moving rapidly towards autonomous AI. The country needs the skills to adopt and use AI in a responsible way, with the right controls and protocols,” Salesforce.com CEO UK and Ireland Zahra Barolomi said in response to questions from CNBC.
“Every government and most of the major parties have valued that,” she added. “That’s my wish list. If there was one thing I had to prioritise, [it should be] Digital skills
Matthew Houlihan, senior director of government and enterprise relations for the UK and Europe at US enterprise technology company Cisco, said the next administration should aim to make the country a leader in innovation and emerging technologies such as AI and quantum computing.
“This is also an opportunity to reassess our approach to key aspects of the UK’s digital economy, including digital skills, adoption support and security, so that the benefits of digital technologies can be felt by as many people as possible across the country,” he added.
Political leanings
While many tech executives remain tight-lipped about which candidates will secure their votes in the July 4 election, a growing number are beginning to make their political stances public.
Last month, dozens of business executives, entrepreneurs and investors signed an open letter announcing their support for the Labour Party in the upcoming election. “As leaders and investors in UK businesses, we believe the time for change has come,” they said in the letter.
Shadow Chancellor of the Exchequer Rachel Reeves, Labour Leader Sir Keir Starmer and Deputy Leader Angela Rayner attend the Labour Party’s Election Manifesto Launch Event at the Backstage Centre in Purfleet, England on May 16, 2024.
Signatories include some of the UK tech giants including Wikipedia founder Jimmy Wales, Founders Forum co-founder Jonathan Goodwin and Atom Bank CEO Mark Mullen.
The letter’s authors say the British economy has suffered a decade of stagnation due to a lack of political stability and a coherent economic strategy.
British Chancellor of the Exchequer Sunak said it would “take time” for people to “really feel” the economic momentum.
UK gross domestic product grew 0.6% between January and March, after falling into a mild recession in the second half of 2023, according to data released earlier this year.
The end of uncertainty
Over the past four years, the UK has experienced particular adversity and economic uncertainty, from the impact of the COVID-19 pandemic and the conflict in Ukraine on global supply chains, to rising costs of living for both consumers and businesses.
This, combined with a disastrous September 2022 “mini-budget” drawn up under Mr Sunak’s predecessor, Liz Truss, has left British tech bosses saying what they want now is stability and certainty.
British Chancellor Rishi Sunak (left) and UK Chancellor of the Exchequer Jeremy Hunt (right) visit BAE Systems in Barrow-in-Furness, England, on March 25, 2024.
“Over the last two years, both parties have essentially agreed that business is important to the growth of the country. Business is important, and fintech is important. [financial technology] “It’s all about entrepreneurship,” Rishi Khosla, CEO of UK digital bank OakNorth, told CNBC.
“I really hope that whichever party comes to power will stay the course and stick to their guns, not just on policies but on actions, whether it’s immigration or taxes, and make sure they don’t create an environment that’s anti-populist,” Khosla said.
Lots of statements but not enough details
One current source of frustration for UK tech leaders is the fact that neither of the major political parties have yet explained how they will promote business, let alone the entrepreneurial community and burgeoning tech industry.
Tech executives who spoke to CNBC were unable to point to specific policies or plans from either major party.
UK Chancellor of the Exchequer Jeremy Hunt recently announced a series of new tax cuts and investments that he said will help the UK establish itself as a global leader in high-growth industries.
In an interview with the Telegraph, Hunt suggested the Conservatives would introduce new tax cuts if re-elected, saying his priorities would be “business tax to encourage investment” and growth, but he declined to give further details about his plans.
Labour had previously promised to cap headline corporation tax rates at the current 25% and confirmed it would retain certain tax reliefs, including full expensing and research and development (R&D).
Labour has said it will publish a roadmap for business taxation if elected.
—CNBC’s Jenni Reid contributed to this report
