Following yesterday’s Budget, two tech CEOs have spoken to 9amBusiness about the impact they feel it will have.
Ritam Gandhi, Founder and Director of Studio Graphene, comments: “The Budget will do little to shake off the prevailing cloud of negativity hanging over the private sector, even with the Chancellor’s promise that ‘If you build here, Britain will back you’. Consultations will not help in the here and now; from startups to corporates, the challenges that businesses are facing – from access to finance and talent through to stagnant economic growth and higher taxes – are not going away.
“Such challenges place greater pressure on organisations of all sizes and sectors to improve productivity and find ways to do more with what they’ve got. Invariably, the answer will be technology and, in particular, AI. And that’s where, from a business and technology perspective, the government had already actually played its trump card late last week in announcing a raft of new reforms and investments under its AI strategy.
“This was a welcome move and, amidst all the negativity that has surrounded this Budget, the fact that the government is pursuing different options to improve AI startups’ access to funding and routes to market is really positive. They will likely be lost amidst all the noise today, but the AI Growth Zones, Sovereign AI Unit and ‘first customer’ policy were all good steps forward.”
Business were braced, but no nasty shocks
Tony Kounnis, CEO of Face Int UK & Europe, comments: “A lot of businesses headed into today’s Budget in the brace position. The government had warned that unpopular tax hikes would be coming, and there was wild speculation about what that would look like in practice. But the tech sector can now breathe a sigh of relief – there might not have been any big plus points, but there were no nasty shocks either as the Chancellor reiterated that supporting tech companies is essential for economic growth.
“Yes, favourable policies are always going to be welcomed – things that help businesses to hire, access capital, manage risk and create partnerships. But, in reality, most tech firms want agency to execute their plans without fear of constant changes to tax, legislation or policy. With the Budget delivered, and promises to entrepreneurs that the government “will back you”, now is the perfect time for the UK tech sector to focus on what it does best – driving innovation and growth.”
Dominic Carroll, Director Portfolio, e2e-assure, comments: “If the UK wants growth, it must fund resilience. Cyber attacks are now economic events – JLR and M&S proved that. Supporting businesses to detect and contain threats faster will pay for itself in national productivity. “The Government must treat cyber resilience as economic infrastructure. The attacks on JLR and M&S show that a single breach can disrupt supply chains, stall productivity and dent UK prosperity. Targeted incentives for 24/7 threat detection and response would protect growth where it matters most. “Cyber security isn’t a technical cost, but a prosperity issue. Recent attacks show that when a major UK business goes down, whole supply chains feel it. This Budget should help firms harden their defences so the wider economy stays open for business.”