Backing Britain's tech stars is the way to transform sluggish growth: ALEX BRUMMER
A remarkable aspect of British life is how well critical sectors of the economy are doing despite Labour’s efforts at sabotage through high taxation and spiteful targeting of aspiration and entrepreneurship.The narrative that those with the broadest shoulders must bear the greatest burden may work wonders on the rebellious backbenches in the Commons for the Left.When it comes to industrial policy, the Government finds it easy to throw money at sunset industries such as steel and the railways.But it is incapable of understanding how the real opportunity is to become the next Silicon Valley or California’s bridgehead in Europe.When, in the dying days of the Tory government, the then Chancellor Jeremy Hunt tried to enthuse over this mission he was mocked. Yet there is growing statistical and physical evidence that this is happening.The diagnosis of Brexit doomsters such as Wes Streeting, that getting closer to a moribund EU trading bloc will boost flat output, could not be more wrong.The solution to Britain’s sluggish growth is to make research, innovation and technology a core mission of the economy – not worrying about potholes. Made in Britain: To boost growth we must back the British tech star firms that are among the world's bestThe bits of national infrastructure which really work are our great research universities and scientists – people such as 2024 Nobel chemistry prize-winner Demis Hassabis, of University College London.This is not just me fishing around for some end-of-year good cheer – it already is under way.Despite the effort of Rachel Reeves to make us all feel miserable, latest data shows that in 2025 the UK tech sector outpaced France, Germany and Switzerland to grab the greatest share of start-up venture capital funding at a whopping $21bn (£15.6bn).As Saul Klein, executive chairman of venture investor Phoenix Court noted in The Observer, the UK sits on an ‘underpriced long-term asset’. That explains why Britain has become such an easy target for overseas predators seeking shortcuts to the nation’s discoveries.In a recent conversation with the boss of one of Britain’s home-grown real estate giants, I heard a degree of optimism about Britain’s tech prospects never articulated by politicians: Reeves likes to trumpet corporate vulture Blackstone’s promised £10bn investment in the UK but we know from experience with care homes and much else how badly that can work out.Along the Euston-King’s Cross corridor, with easy access to London’s research universities, a revolution is taking place.At Triton Square, British Land has refurbished a building as a science and tech park and is understood to have 60 per cent of the new space almost immediately under offer.Next on the list is to rebuild and refurbish the architecturally suspect 1960s Euston Tower for New York and Californian tech champions thirsting to head to London for a share of the AI revolution.If Business Secretary Peter Kyle had imagination, he would press the Chancellor to shift the tax burden away from tech and innovation. A big chunk of the £150bn promised in capital spending should fund R&D support and science infrastructure.Failure to do so will condemn Britain to Continental-style stagnation.AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Backing Britain's tech stars is the way to transform sluggish growth: ALEX BRUMMER
