CES 2017: Is UK Government Support For Tech Really ‘Embarrassing’?

“CES now covers a broad range of technology areas and provides a platform to truly showcase that UK remains open for business,” said Paul Hide, director of operations at techUK.

“techUK believes that an increased focus on supporting UK based tech companies is more important than ever; we are pleased to see Matt Hancock attending this year and will work alongside the Government to continue to support the growth of our UK technology sector across the global marketplace.”

But is the government helping startups enough? Are Shapiro’s comments validated or is he merely displeased that other countries are spending more money to attend the event?

Quit whining?

Silicon asked a number of startups if they felt they’d been given enough support and whether government pledges were simply hot air. The reaction was mixed, but a common theme was that more help will be needed in a post-Brexit economy.

“We wouldn’t have been able to grow like we have had were it not for the dedicated efforts made by the UK government to provide comparatively low costs of start-up entry, accessible technology, a flexible economy and a positive attitude towards self-starters and entrepreneurship,” argued Rashid Ajami, CEO of Campus Society, a student community platform.

“LoopUp is a UK tech company that’s grown from being a start-up in 2003 to going to IPO last Summer,” added Steve Flavell, CEO of conference call firm LoopUP. “Over that time, we’ve found the UK government to generally be very supportive. The tax benefits of the Enterprise Investment Scheme (EIS) are exceptional.

“We’ve also benefitted – particularly while we were loss-making – from R&D tax credits. Government-sponsored schemes such as TechCity UK and the Future Fifty program add to the vibrant UK tech community as well. These are structural level programs that are available to all. They’re much more suitable for Government involvement than support at a particular trade show.”

‘Nowhere to go’

But others were less convinced.

“The Government definitely has further to go in terms of supporting UK tech companies,” said Richard Muirhead, general partner at software investment firm OpenOcean, who claimed visa programmes and funding pledges were insufficient. This, he argued, would lead to talent shortages and a funding gap if EU funds are not replaced by Westminster.

“There are two main ways the government can ensure London retains its tech crown, post-Brexit. The first being to make it easier for companies to keep, attract and recruit top talent; whether that talent is homegrown, from neighbouring EU countries or further afield. The second is committing to investment that reflects just how much the industry is worth to the future of the British economy.”

British smart home tech firm Smarter said the sale of Edinburgh-based Skyscanner showed there was nowhere for British startups to grow. The UK’s biggest tech firm, ARM, was also sold earlier this year to Japanese giant Softbank, a transaction that was even used by the government as evidence of a thriving economy.

Continues on page 3…