The reaction to the chancellor’s Spring Statement has been a cautious one from many across the tech community. While there has been praise for efforts to support job creation and an acknowledgement of the importance of technology, particularly artificial intelligence (AI), there are concerns over the lack of deep commitments to developing infrastructure and scarcity of support for SMEs.
Alan Stephenson-Brown, CEO of managed network player Evolve, was left searching for details of digital infrastructure support: “Despite the chancellor’s promises made in October to boost digital infrastructure and support the growth of the digital and technology sectors, it still remains to be seen if the government will deliver on these commitments.
“The promised £500m investment in Project Gigabit and the Shared Rural Network next year was not mentioned, which is desperately needed to bridge the digital divide and support businesses in underserved areas.
“For Evolve, as a managed network solutions provider, the pressure to deliver reliable, scalable connectivity is even higher now. As digital transformation continues across industries, securing high-performance networks has become essential.
“It’s clear to us that sustained investment in connectivity infrastructure is crucial for driving productivity and supporting growth in our increasingly digital economy, and we would have liked to see this recognised in the Spring Statement,” he added.
Elsewhere, there were concerns that there was not enough support for the channel’s key SME customer base, with Laurent Descout, CEO and co-founder of Neo, saying: “It is disappointing that the chancellor failed to address the challenges facing SMEs. With company insolvencies at their highest level in a decade, businesses need real backing, not higher taxes and reduced incentives.
“The planned increase in capital gains tax on Business Asset Disposal Relief could deter investment in high-growth fintechs, making it harder for startups to scale and compete globally. The government must reconsider their approach and do more to ensure the UK remains an attractive place for entrepreneurs and investors,” he added.
Olly Sloboda, CEO and co-founder at Zero100, was also concerned about the impact of government policies on business. “Short-term relief or minor adjustments won’t be enough. What’s missing is a clear, long-term strategy for helping UK businesses compete globally.
“The businesses that will thrive in the next decade aren’t waiting for conditions to improve at home, they’re already scaling internationally and adapting their supply chains to navigate an increasingly volatile world,” he said.
Where the Spring Statement was more successful was around using technology to benefit government and comments by the chancellor made on attempts to reduce unemployment.
“We’re pleased to see the chancellor’s efforts to improve the efficiency of government departments, particularly her ambition to inspire the pioneering of AI technologies which will support this,” said Rob Sinclair, CEO of Altia.
“With public services under immense pressure, ongoing investment in skills and technology is needed. Solutions that improve efficiency, automate administrative tasks and enhance intelligence-sharing will be crucial.”
Lee Bennett, head of learning and development at Paragon, welcomed the positive noises the government has been making about supporting apprenticeships and efforts to get people into work: “It has become harder to break into the job market, and therefore investing in training, apprenticeships and job opportunities are essential to prevent young people from being excluded from the workforce.
“Providing them with the opportunity to develop a variety of skills in a real-life work environment is something I wholeheartedly support. They are the future of organisations like ours, and we are committed to giving them the best possible start in their careers,” he said.