Yahoo Finance Budget 2017: Hammond's push to make the UK a leader in technology
Chancellor Philip Hammond has announced £270 million will be spent to help fund sectors such as STEM education, driverless cars, PhDs and greater digitalisation.
The fund, known as the Industrial Strategy Challenge Fund, will intend to foster partnerships between business and the UK’s science sector.
In its Budget document, the government said it has ambitions to support Britain continue its position “at the forefront of the global technology revolution” by investing in “cutting-edge technology and innovation”.
But in a fast changing and competitive tech world, will the Chancellor’s Budget pledge really make a difference in keeping the UK at the forefront of disruptive technologies like biotech, robotic systems and driverless cars?
Jekyll and Hyde
Justin Arnesen, director, R&D tax and grants at consultancy group Ayming, is sceptical of the government announcement. One criticism made by Arnesen is that a large portion of tax claims for research and development submitted by IT companies are being met with scrutiny and resistance from HMRC.
“Despite this commitment to digital innovation, the government is currently acting in a Jekyll and Hyde manner as while it is investing in Britain’s digital future, it is also hampering its progress,” he says.
Ethical innovation is important
While the UK may want to make significant headway to be the very best in digital disruption, but ethical innovation is essential when speeding ahead, as Harry Armstrong, head of futures at Nesta, an independent innovation charity, explains.
“We must think seriously about what ‘good innovation’ is. What the ethical and social implications are of using disruptive technologies, in both business and public sector environments.”
In a post Brexit environment are expectations realistic?
With Brexit looming is now the time for the government to prove itself as leader in tech and innovation?
Arnesen says the government needs to take control of its own initiatives, create industry-specific incentives and clarify what post-Brexit funding will look like in the long term.
“Investments made when the Budget spotlight burns bright are all well and good, but Britain has a real opportunity now and the government has to continue pushing R&D across the board, not just for the headlines.”
Written by London-based journalist Tanzeel Akhtar. Her work has been published in the Wall Street Journal, FT Alphaville, CNBC, Citywire, Euromoney, Interactive Investor.
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