How Will the Budget Affect the Technology Sector?

Many people have had much to say about the terms and implications of the spring Budget delivered by Chancellor of the Exchequer George Osborne on March 16 – and leaders in the UK’s tech sector have been no different. Here’s a summary of what they had to say.

Support for the Northern Powerhouse

The greater devolution that the Chancellor plans for the North has sparked hope in Matt Roberts, the CEO of Nonexecutivedirectors, an online network which brings top businesses and non-executive director candidates together.

He told Tech City News: “As part of the devolution we will hopefully see new powers given to regions in the North to enable us to have more power on key decisions”. He also gave positive talk about the pledged upgrades to the M62 and A66 roads, which he enthused will “increase the flexibility of movement across the North”.

Broad plans for broadband

Meanwhile, our co-founder Joe Giordano has had his say on the freshly-announced policies for boosting the UK’s broadband network. At ChargeApp, we know that many of the same people who can keep electronic devices’ batteries well-served with the help of our mobile app can also heavily depend on consistently fast and reliable broadband.

It’s unsurprising, then, that Giordano has remarked: “Our wish for better broadband to enable the benefits of the tech industry to be felt by all has been granted with the establishment of a Broadband Investment Fund, which will support the growth of alternative broadband networks.” Meanwhile, mobile networks will get a huge boost with Osborne’s promised delivery of a 5G strategy in 2017.

Lower corporation tax for SMEs

The government will further help the tech sector to form new businesses and encourage those businesses to grow. To be more exact, corporation tax is set to be cut for SMEs. Erki Kert, CEO of Big Data Scoring, has said that, in revealing this, “the government has further acknowledged the valuable contribution tech startups make to the UK economy”.

Kert observed: “The UK has cultivated a hub of technology innovation in London that attracts talent from all over Europe. This fast-growth sector creates jobs and is making positive contributions to the economy.” He noted his own company’s move to London from elsewhere in Europe, an example of the capital’s strong pull for tech firms.

Looking at the bigger picture

A variety of tech players have summarised the impact of the Budget on the country’s tech sector as a whole. In doing this, Marc Defosse, managing director at Ribbonfish, has expressed his hope that “the new high-speed rail lines will enable us to service clients better throughout the country”, adding that “Crossrail 2, in addition to the Elizabeth Line, will open up a pool of talent by providing an easier and quicker commute within the capital”.

Meanwhile, Laundrapp CEO Ed Relf has said that the to-be-enacted tax cuts and abolished business rates should lead to more jobs and innovation, not to mention “help Britain ‘put stability first’ and remain one of the world’s fastest growing economies”.