Is the UK on track to become a global tech powerhouse, or are we still missing the mark? This question took center stage at the “UK 2.0: Building a Pro-Tech Britain” event attended by AIN. The gathering, hosted by Digital Frontier, brought together industry titans and policy experts to explore both the obstacles and the massive potential of the UK’s tech landscape.
The overwhelming sentiment was optimistic but cautious. While the UK has all it needs to support growing startups, there are key hurdles it must overcome to truly thrive. Joe Hill from the think tank Reform opened the discussion by acknowledging the UK’s “significant challenges,” but he was quick to add they are “solvable.” He emphasized the UK’s unique allure and described it as “undervalued.”
“Few countries offer such an appeal…people are eager to be here,” Hill noted. This inherent magnetism along with our current strengths provides a robust platform for growth. The main challenge lies in overcoming institutional barriers that stymie development.
Barney Hussey-Yeo, the brains behind AI-driven fintech app Cleo, echoed Hill’s thoughts. He pointed out the UK’s rich ecosystem: “We have everything—early-stage capital, talent, universities, you name it.” Despite this, Hussey-Yeo believes the UK should be the global fintech hub. However, there’s a stumbling block: an inability to retain the value created by our own success stories, attributed largely to overregulation that stifles growth.
He cited Revolut as a noteworthy instance—a company born in the UK, yet the majority of its growth benefits other regions. “We create these monumental companies,” Hussey-Yeo lamented, “yet the value escapes us.” He mentioned Dubai and the USA as key beneficiaries of this lost potential.
The theme of value retention kept surfacing. Hussey-Yeo suggested that UK pension funds should invest in local startups, highlighting several areas for reform: developing a stronger talent pipeline through education, lifting excessive regulations to fuel expansion, and bolstering public markets to support scaling businesses.
Companies like Revolut and DeepMind, he argued, should have been nurtured more effectively within the UK. “We have more venture capital than most but are quicker to sell out,” he pointed out.
Hill underscored the necessity of addressing practical challenges too, like the need for more housing in London to sustain its growth and maintain its stature as a leading global city.
On the decision-making front for founders, Hussey-Yeo stated, “Founders make rational choices.” While the UK offers advantages like lower capital gains taxes and competitive talent costs compared to the USA, he also highlighted a troubling “exodus of millionaires.” “We need to build an environment where people want to stay,” he urged.
Yet, Hussey-Yeo remains hopeful. “We can birth 5 more DeepMinds over the next decade,” he declared, citing the UK’s talent, capital, English language advantage, and proximity to America. With the rapid advancement of AI, he believes the UK could be a “transformational” hub for tech growth.
Julia Willemyns, co-founder of the UK Day One initiative, shared this optimism, urging greater ambition and empowerment. “So many things could align perfectly,” she said, imagining a vibrant tech nation. “The future is upon us.”
The event wrapped up with a call to action. Hill emphasized the need to cultivate a spirit of ambition and dynamism, while Willemyns encouraged attendees to seize upcoming opportunities. The takeaway was unmistakable: the UK holds immense potential to become a pro-tech powerhouse. It’s time to make it happen.
Digital Frontier is a platform dedicated to exploring key topics at the crossroads of technology, business, and society.
