The challenge: Regulation is a vital enabler of trust, investment and innovation — but when it becomes overly complex, fragmented or difficult to navigate, it can slow progress and hold back UK growth. A recent techUK & Public First poll found that regulatory burden is now one of the top barriers to growth for tech firms, limiting their ability to scale, innovate and compete.
techUK Report - Evolving Digital Regulation for Growth and Innovation
techUK is excited to announce the publication of our latest report, ‘Evolving Digital Regulation for Growth and Innovation.’
This report is available to everyone. Log in or sign up for free to download the full report.
As a membership body representing over 1,100 technology companies, techUK recognises the crucial role regulation plays in creating the conditions for economic dynamism. Effective and proportionate regulation is a vital enabler of trust, innovation, and long-term investment. However, when regulation becomes overly complex, fragmented or burdensome, it can stall innovation, deter investment, and hinder growth.
While the UK has one of the strongest reputations for being a well-regulated market - the regulatory environment in the UK for companies working across the digital economy has become more complex in recent years. A recent techUK and Public First poll of 250 senior tech sector decision makers revealed that they now regard the regulatory burden as one of the most significant barriers to growth. The challenge, as ever, is to get the balance right. This paper sets out some recommendations that build on the UK’s strengths both as a well-regulated and highly innovative economy.
At the same time, businesses have faced mounting regulatory compliance costs, which Government estimates could potentially be as high as 3-4% of GDP, or around £70bn, annually. This burden places a strain on company finances, making it harder to invest, innovate, and grow in the UK. That is why the Prime Minister’s announcement of his Government’s intention to cut administrative costs of regulation for businesses by 25% by 2029 is welcome.
This report sets out techUK’s 10 recommendations to improve the effectiveness of the UK’s regulatory regime. To deliver on this ambition, we focus on four areas: Firstly, adopting a shared growth mindset between industry and regulators; secondly, supporting innovation and market dynamism; thirdly, improving information flows between regulators and industry, and finally; unlocking opportunities in key sectors.
The opportunity: The Government has rightly renewed focus on regulatory reform — including the HMT Regulatory Action Plan and the creation of the Regulatory Innovation Office — creates a unique opportunity to reset the UK’s regulatory approach. This report sets out how we can seize this focus to make the UK the most appropriately regulated market.
The UK has the opportunity to be a world leader in tech innovation, but only if we get regulation right. Better, pro-growth regulation isn’t about deregulation; it’s about doing regulation differently. Our report shows how we can build a regulatory system that fuels innovation, protects the public, and drives economic growth. By working together across policy, regulation and industry, we can deliver a regulatory framework that empowers the UK’s digital economy for decades to come.

Julian David, CEO, techUK
We hope you find the report insightful, and encourage you to get in contact with the team regarding any quesitons.
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