Introduction to techUK's Call for Support

In a pivotal moment for the UK's tech industry, techUK, a leading technology trade association, is calling on the government to enhance support for tech scale-ups. This initiative aims to nurture more successful tech companies in the UK, leveraging the country's strong startup ecosystem and fostering growth through strategic government interventions. The appeal comes as part of techUK's broader efforts to ensure the UK remains a global hub for high-growth tech businesses.

The Importance of Scale-Ups in the UK Economy

Scale-ups, defined by the OECD as companies with average annual growth rates exceeding 20% over three years, play a crucial role in the UK economy. Despite making up only 1% of SMEs, they account for 8% of SME employment and 22% of SME turnover, according to the Social Markets Foundation[2][3]. This outsized contribution underscores the potential for scale-ups to drive economic growth and develop future globally leading companies in science and technology.

Challenges Faced by Scale-Ups

Despite their growth potential, scale-ups face significant challenges, including:

• Access to Markets: Scale-ups often struggle to secure funding from UK investors, leading them to explore international markets and navigate complex regulatory environments[5].
• Access to Finance: There is a notable lack of institutional capital to drive growth, impacting businesses' ability to expand within the UK and compete globally[5].
• Access to Talent: Scale-ups face stiff competition from larger tech companies in attracting and retaining top talent, making it difficult to meet growing customer demands while developing managerial and leadership skills[5].

techUK's Recommendations for Government Support

To address these challenges, techUK has outlined several key recommendations for the government:

• Dedicated Support Package: Launch a dedicated support package for tech scale-ups, including a concierge service that connects scale-ups with relevant experts across government and industry[1][5].
• Market Access: Provide scaling businesses with more opportunities when buying tech, and utilize the Regulatory Innovation Office to complement regulatory sandboxes and test beds[5].
• Financial Support: Review, streamline, and integrate different types of government financial support to make it easier for scale-ups to access capital. Additionally, bolster world-leading EIS and VCT schemes to better support regional tech start-ups and scale-ups[5].
• Talent and Skills: Better promote the Enterprise Management Incentive (EMI) as an option for scaling firms to access talent. Make the scale-up worker visa more competitive by removing complexities and reducing costs[5].
• Diversity and Inclusion: Continue the Science and Technology Venture Capital Fellowship Programme to grow the network of women and ethnically diverse investors, addressing the underfunding of female and ethnic-minority led businesses[1][5].

The Role of the Department for Science, Innovation and Technology (DSIT)

The Department for Science, Innovation and Technology (DSIT) has been instrumental in launching initiatives to support scale-ups. This includes the Scale-up Sprint initiative, which aims to make the UK a "scale-up powerhouse" by providing targeted support to the most promising tech companies[2][3]. DSIT's efforts also involve creating a new Scale-up Forum to co-design business policies with scale-ups and a science and tech-focused support service to help navigate regulatory barriers[2][3].

The Impact of Invest 2035

Invest 2035, the UK's modern industrial strategy, presents an immediate opportunity for the government to support tech scale-ups. By focusing on diversity and inclusivity, this strategy can unlock economy-wide benefits, strengthen supply chains, and raise living standards across the UK[1]. The strategy's emphasis on technology at its core aligns with techUK's vision for nurturing ultra-growth companies that bring unparalleled dynamism to the economy.

Conclusion

techUK's call for enhanced government support for scale-ups highlights the critical role these businesses play in driving economic growth and innovation in the UK. By addressing key challenges and implementing targeted support measures, the government can foster an environment where tech scale-ups thrive, contributing significantly to the UK's ambition to become a leading global tech hub.