At today’s opening of London Tech Week, Prime Minister Rishi Sunak said he sees the UK as an “island of innovation.”
Sunak reported that the UK has created 134 unicorns in the last ten years, stating that the UK is one of the most “digitally literate countries in the world.”
A key point to his thesis is that access to capital is improving, noting that UK startups received over $31 billion in venture capital investments in 2022 – this is 9X the amount a decade ago.
Regarding Fintechs, Sunak had this to say:
The UK is home to half of Europe’s Fintech unicorns. That makes us the second largest country in the world for Fintech. In fact, last year, our Fintech sector attracted more investment than the next thirteen European countries combined. So if you’re a tech innovator, and you’re asking yourself – why should I choose this country to invest? I hope that you judge us – not by what we say, but what we do. Because it’s this government that is building the most pro-investment tax regime. It’s here that’s the best place in Europe to raise capital. And it was this government that acted to rescue Silicon Valley Bank. I’ll never stop banging the drum for Britain as the best place in the world to do business.”
Importantly, Sunak touted the fact that the UK has the lowest corporate tax in the G7.
Laurent Descout, Founder and CEO of Neo, emailed his feedback on the Prime Minister’s statements. NEO is a cash management platform providing digital treasury services.
Descout is of the opinion that the UK still has a ways to go to become a tech and science superpower. Descout said the UK must “play to its strengths” and act quickly if it wants to accomplish its goals.
“The prime minister made his big ambitions for UK tech clear in his opening keynote at London Tech Week. Sunak shared why the UK is a great location for tech businesses and the progress that’s been made to date, such as the creation of 134 unicorns in the past decade and the UK being the best place to raise capital in Europe. AI is an acronym on everyone’s lips at the moment, and Sunak, of course, mentioned the potential of the technology. It was interesting that he did so in the context of AI safety regulation. AI has huge potential, but it needs to be harnessed carefully, and I’m sure many in the industry will respond positively to the government’s safety-first approach,” said Descout.
He said the UK is clearly in a strong position but the UK’s future as a tech superpower is not guaranteed.
“If the UK government is to achieve its lofty ambitions, it needs to play to its strengths, champion the sector, support startups, increase investment, make it easier to do business in the UK and boost digital skills.”