The UK government has set a target to grow its technology sector to £1 trillion. Artificial intelligence, quantum computing and cybersecurity are the main aspects of this ambition. The Digital and Technologies Sector Plan, published in June, sets out tax breaks, research grants and investment in skills to drive progress.
£22.6 billion is budgeted for public research and development in 2029 and 2030. Also, the government wants to attract more global talent, reform visa processes and improve funding access through the British Business Bank and the National Wealth Fund.
The vision is to make the UK one of the top three global locations for building fast-growing technology companies by 2035. Achieving this depends on managing shortages of skilled workers, better infrastructure and more reliable supply chains.
Which Technologies Are Prioritised?
There are 6 areas… These are advanced connectivity, artificial intelligence, cybersecurity, engineering biology, quantum technologies and semiconductors.
Advanced connectivity covers the next generation of telecoms, satellite networks and transport. The government wants to build on the research base and create more commercial ventures that can serve both domestic and international markets.
Artificial intelligence is expected to drive change as well. Plans include new AI Growth Zones, stronger computing capacity and better access to data. A “Sovereign AI” programme is also being put together to attract leading companies to set up in the UK.
Cybersecurity is also becoming more of a priority, of course. The Cyber Security and Resilience Bill and further investment will help strengthen innovation in areas such as post-quantum encryption. Links to defence and intelligence networks will form part of this effort.
Other areas such as engineering biology will benefit from a new infrastructure fund, while quantum technologies will see long term programmes refreshed to accelerate research. For semiconductors, the emphasis is on strengthening supply chains and building up local design and production.
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How Is The Sector Doing Now?
The tech industry was worth about £887.4 billion in 2024, according to HBSC. Global trends also show how far technology has advanced. Government figures show that nine of the 15 most valuable companies in the world are now tech-based. Twenty years ago that list was dominated by oil, banking and manufacturing groups.
Growth is not confined to London… Manchester and Bristol have become hubs for new businesses in areas such as blockchain and agritech. In Bristol, Arm has invested £100 million to open a new chip design facility, creating 1,000 jobs. Moves like this are intended to reduce dependence on overseas supply chains.
What Is the End Goal?
The UK wants to be one of the top 3 destinations worldwide to grow a technology business by 2035. The government also wants to host its first trillion-dollar tech company within that timeframe.
Together with this, there is a target to build a stronger skills base at home, create more resilient energy and digital infrastructure and strengthen partnerships abroad.
To achieve this, the government is aligning its technology plans with regional projects like the Oxford-Cambridge Growth Corridor. The ambition is to spread the gains more evenly across the country and avoid over concentration in London.
The next decade will show whether or not these measures can deliver. If the UK manages to meet its targets, the country could move into the top tier of global technology nations.
