The UK has the potential to become a global tech powerhouse, but are we truly maximising our opportunities? A recent event that AIN attended, “UK 2.0 Building a Pro-Tech Britain,” hosted by Digital Frontier brought together industry leaders and policymakers to discuss the challenges and, more importantly, the immense potential of the UK tech scene.
The consensus was clear: the UK has the ingredients to support startups as they grow, but it need to address some critical issues to truly flourish. Joe Hill from public services think tank Reform set the stage, acknowledging that while the UK faces “huge problems,” they are “fixable.” He emphasised the UK’s unique appeal and the fact it was ‘underpriced’.
He made the point that “Few countries have such an appeal…people want to be here.” This inherent attractiveness, coupled with our existing strengths, forms a solid foundation upon which to build. The challenge lay in the institutional factors hampering growth.
Barney Hussey-Yeo, founder of AI-driven fintech app Cleo, echoed this sentiment, highlighting the UK’s rich ecosystem: “We have all the ingredients here – early-stage capital, people, talent, universities, capital.” Indeed, the UK boasts a vibrant fintech scene, yet Hussey-Yeo argued that we should be the fintech capital of the world.
The problem, he suggested, lies in our inability to retain the value created by our homegrown successes, with over regulation hampering the ability of companies to scale.
He pointed to Revolut as a prime example, a company launched in the UK but whose growth primarily benefits other regions. “We create these generational companies,” Hussey-Yeo lamented, “The problem is we don’t return any of the value as a country.” He cited Dubai and the USA as beneficiaries of this lost value.
This issue of value retention was a recurring theme. Hussey-Yeo stressed the need for UK pension funds to invest in startups and identified several key areas for improvement: a better talent pipeline through education, massive deregulation to stimulate growth, and stronger public markets to support companies as they scale and eventually list.
He pointed to Revolut and DeepMind as examples of companies that should have been nurtured and supported within the UK market. “We have more venture capital than other countries,” he noted, “but we sell out more quickly.”
Hill also emphasised the importance of addressing practical issues, such as the need for increased housebuilding in London to support the capital’s growth and maintain its status as a leading global city.
Hussey-Yeo further explored the factors influencing founders’ decisions, stating, “Founders are rational actors.” While acknowledging the UK’s advantages, such as lower capital gains tax and talent costs compared to the USA, he also highlighted the concerning “exodus of millionaires.” “We need to create the environment people want to live in,” he urged.
Despite these challenges, Hussey-Yeo remains optimistic. “We can create 5 more DeepMinds in the next 10 years,” he declared, emphasising the UK’s talent, capital, English-speaking advantage, and proximity to America. He believes the UK could be “transformative” with the rapid growth of AI, becoming a prime location for tech companies to grow and scale.
Julia Willemyns, co-founder and co-director of science and tech innovation project UK Day One, echoed this optimism, calling for greater ambition and empowerment. “So many things could go right,” she said, envisioning the potential of a thriving tech nation. “The future is coming.”
The event concluded with a call to action. Hill emphasised the need to “create a sense of ambition and dynamism,” while Willemyns urged attendees to embrace the opportunities ahead. The message was clear: the UK has the potential to become a pro-tech powerhouse. Now, it’s time to build it.
Digital Frontier is a publishing and events platform exploring what matters most at the intersection of technology, business and society.
