Experts Share: How Can The UK Become A Global Tech Leader Again?

Confidence in the South West dropped to 23% last month, according to Lloyds. That compares with 42% in February, and shows that there is less enthusiasm among companies, where outlook slid from 54% to 30%.

Researchers also saw a fall in national optimism, which moved from 30% down to 15%. This was recorded before the Spring Statement and covered ideas for hiring, product lines, and new systems.

Even with those lower numbers, many businesses plan to use advanced tools and boost staff training. Lloyds describes these steps as evidence of resilience, even when external forces present hurdles.

 

How Does the UK Rank in Technology?

 

SThree and the Centre for Economics and Business Research placed the UK at 13th in a global measure of tech competitiveness. No G7 nation appeared in the top ten, pointing to changes in worldwide tech leadership.

Ireland, Singapore, and Australia earned higher positions. City AM noted that shortfalls in resources have hindered local projects, which may explain why the UK has slipped in these global tables.

Dr Sue Black OBE has called on the UK to strengthen a positive environment around technology. She spoke of steady regulations that would help entrepreneurs as they build new ideas.

Though funding and rules are in flux, the UK still holds sixth place in high-tech exports. Researchers credit standout performance by universities such as Oxford, Cambridge, and Imperial College London.

Reports show that East Asian players lead advanced fields like AI, with impressive patent filings. In contrast, British firms often struggle to secure backing, and that has motivated top talent to look overseas.

 

What About The London Growth Plan?

 

Stephen Feline, Director of North America at London and Partners explains, “AI venture capital (VC) investment in London has hit an all-time high, making up 32% of overall VC investment in the city according to the latest data from Dealroom and our organisation, London & Partners. London-headquartered AI startups raised a record $3.5B in VC in 2024. This reflects a 52% increase to the levels raised in 2023 ($2.3B) and is 21% higher than the previous record set in 2022 ($2.9B).

“The data also shows that London leads in Europe for AI VC investment, followed by Paris ($2.4B) and Munich ($763M), and ranks third globally following only New York ($6.1B) and the Bay Area ($60.7B).”

Feline also touched on the different aspects of the recently launched London Growth Plan from London Mayor Sadiq Khan:

1. It aims to restore productivity growth to an average of 2% a year over the next decade, making London’s economy £107bn larger in 2035
2. An Inclusive Talent Strategy will build the capital’s skilled workforce to unleash the potential of Londoners and – in turn – London’s economy. This will help create at least 150,000 high quality jobs, with a focus on fair pay and good work, to deliver Mayoral manifesto commitments.
3. The plan emphasises investing in green infrastructure, including urban greening, to improve air quality, reduce flooding risk, and enhance biodiversity.
4. The plan aims to scale up local renewable energy generation through projects like solar, wind, and district heating, contributing to London’s energy security and net-zero goals.
5. Plan’s inclusive growth ambitions include a 20% rise in household income for the lowest earning 20% of Londoners
6. London’s universities and research institutes will be key partners in nurturing the talent and innovation required to deliver the Plan’s growth targets. The Plan highlights University College London’s Person-Environment-Activity Research Laboratory and Imperial’s recent purchase of the Victoria Industrial Estate in the proposed WestTech innovation corridor as examples of the specialist spaces needed to support inclusive growth.

 

How Experts Think The UK Can Catch Up

 

Experts have shared how they believe the UK can get back into the top positions when it comes to innovation and tech, here’s what they think…

 

Our Experts:

 

Jeff Le, Managing Principal, 100 Mile Strategies

 

 

“The UK’s recent sliding position in global technology and innovation is a concern given London’s access to capital, talent, and digital infrastructure. However, the Labour Government have made tech jobs a priority and have outlined important steps in its January 2025 AI Opportunities Action Plan.

“Efforts, in particular to develop AI Growth Zones and double research capacity with UK academic institutions will be important for supporting more future AI opportunities in the country.

“The current talent pipeline is far smaller and needs to bolstered fr more, especially as the CompTIA 2024 State of the Workforce Report only saw net tech employment go up by 1.7% last year.

“The UK Government could also look to expand its R&D tax credits far more aggressively and provide more access to capital and speed with less red tape. This is even more important as compute power, energy, and access to chips are non-negotiables for AI expansion.

“In addition, the UK still has significant digital deference maintenance in its critical infrastructure. A hardened system is important to ensure rails for security and data access. By virtue of how quickly the technology has changed and developed, the past government’s 2022-2030 Government Cybersecurity Strategy is out of date and needs an update more frequently. In particular, its AI-powered offensive cyber response and quantum safe cryptography may need significant revision in light of global developments.

“The UK is also benefiting from perceived burdensome AI regulation with the EU’s AI Act and a shift in American AI deregulation. The UK could play a position of championing innovation while also maintaining a strong consumer protection framework that is not as prescriptive as Brussels. This balance could offer more opportunities for deeper investments.”

 

Aidana Zhakupbekova, CFO, Rydoo

 

 

“Europe has long been a powerhouse in computer science education and innovation, thanks to its world-class universities, strong government-backed research initiatives and a thriving tech ecosystem. As a European technology firm with offices across the continent, we have benefitted first-hand from the deep pool of talent and tech expertise on offer. With a strong base of skilled software developers and a recent surge in AI patents, it continues to be a global leader in technological advancement.

“This is important amidst global tensions because Europe’s strong foundation in computer science and AI allows it to maintain technological sovereignty, reducing dependence on American tech giants. As the U.S. and EU navigate regulatory clashes over data privacy, AI governance, and digital market competition, Europe’s ability to produce top-tier talent, patents and innovation ensures it remains competitive on the global stage. Strengthening its own AI and software ecosystem also helps Europe shape international standards and assert greater control over its digital future.”

 

 

Arthur Azizov, Founder and Investor, B2 Ventures

 

 

“A lack of support for startups is a real thing in the UK. Right now, launching and scaling a tech company here is harder than it should be. So, if the UK wants to be a global tech leader again, it needs to create a more startup-friendly environment, which means better funding options. Expanding schemes like SEIS and EIS would make it easier for early-stage startups to raise capital.

“Also, offering tax breaks for R&D, AI development, and deep tech could encourage more innovation. For example, increasing R&D tax credits would help startups reinvest in innovation without worrying about short-term financial strain. The UK already has an R&D tax relief scheme, but expanding it (especially for AI-driven companies) could attract more founders to build here. Or they could introduce tax incentives specifically for AI development, similar to how some countries support green energy. Singapore for example, has already introduced aggressive tax benefits to attract tech firms, and it’s working.”

 

Darren Cran, CEO, AccountsIQ

 

 

“One key concern is ensuring that investment keeps pace with the rapid advancements in technology rather than falling behind. While the UK is renowned for its strong growth, particularly in the fintech sector, investment levels continue to lag behind those seen in the US. If this gap worsens, it will create serious challenges for innovation, scaling businesses, and the long-term growth of the UK’s technology ecosystem.

“Technology is an enabler for all businesses, and the government should support UK businesses in transitioning away from outdated systems that hinder growth toward an agile, AI-driven future. With the right investment climate and a focus on fostering business success, the UK can solidify its position as a global tech leader.”

 

Lisa Miles-Heal, CEO, Silverfin

 

 

“Investment, investment, investment, is what drives growth. But digging the heels in on capital gains increases, will just serve to deter investors. The increase to 14% adjusts the risk reward equilibrium to an unfavourable balance. It will also leave many businesses without much needed funds, as they look to pivot out of a tough economic position.”

 

Dimitri Masin, Co-Founder and CEO, Gradient Labs

 

 

1. Fix the talent pipeline
“There’s no shortage of brilliant engineers in the UK, which is great. The problem is that too many fresh grads still chase consulting and banking over tech. What’s missing is experienced hyperscalers, people who have grown startups into global giants. The UK also lacks repeat founders, the kind of leaders who know how to scale a company from 50 to 5,000 employees. In the US, these founders raise money more easily, creating a cycle of success. The UK should focus on attracting and retaining these leaders while playing to Europe’s strength in multicultural inclusion to bring in top global talent, especially from the US.”

2. Emphasise partnerships with EU tech companies
“The UK alone can’t compete with the US and China, we have to understand. It needs to embrace its European ties because scaling within a fragmented, post-Brexit market is a losing game. The government should push for stronger trade programs and partnerships with European tech ecosystems. At the same time, geopolitical shifts create new opportunities that are hard to ignore. Defense spending across Europe is surging, which could fuel tech innovation, especially in AI and cybersecurity.”

3. Regulation: a great European bottleneck
“One major hurdle? Selling to European companies is painfully slow. They’re risk-averse and hesitant about AI and data protection compliance, which, as a result, drags down adoption. The UK needs to position itself as a bridge and offer a regulatory-friendly environment while still being integrated with European markets.”

4. “AI is rewriting the rules of the game, and the UK should leverage that
If the sudden popularity of DeepSeek has shown anything, it’s that breakthroughs can happen anywhere at any time. The pace of AI innovation is only accelerating, and AI applications aren’t just another software play. They require a different approach. The UK has a chance to lead here, but only if it stops playing it safe and backs moonshot projects in AI, biotech, and quantum computing.”

 

Ben Litvinoff, Associate Director, Robert Walters London

 

 

“For the UK to reclaim its status as a tech powerhouse, we need sustained and strategic investments in the industry and talent pipelines. Opening new visa pathways that prioritise emerging talent is crucial, as current options like the ‘Global Talent Visa’ tend to predominantly cater to senior professionals.

“Government support should extend to companies that are committed to hiring UK-based tech talent and creating local opportunities in tech fields. This approach will help nurture the local tech hiring landscape.

“There’s also a need to reassess top-rate tax bandings to ensure the UK remains an attractive destination for tech professionals developing their careers here. As this could help curb the talent drain to international competitors offering more enticing packages.

“To a similar end, it’s equally important to drive long-term talent strategies that bolster local talent pipelines.

“Increasing the consistent visibility of technology investments and initiatives is vital. While the government has highlighted the importance of investment in AI, similar efforts should be made across a broader spectrum of technologies.”