tech2035: techUK analysis of government Digital and Technologies Sector Plan
Today, Monday 23 June, the UK Government released its Digital and Technologies Sector Plan, aiming to make the UK one of the top three global destinations for creating, investing in, and scaling tech businesses. The goal? To secure the UK's first trillion-dollar technology company.
This is one of the IS-8 sector plans and a key piece to accompany the wider Industrial Strategy (see more on this through techUK’s analysis). The plan centres on using frontier technologies to enhance UK security and sovereignty while driving economic growth in key clusters across the UK. It includes both sector-specific and economy-wide policies supporting the government's broader growth mission.
techUK welcomes the plan's release and, on behalf of our members, stand ready to support the government deliver on both this plan and related sector plans.
Executive summary:
This plan aims to strengthen the UK's tech sector, which currently boasts metrics including £1 trillion market capitalisation, 185 unicorn companies, £207 billion in gross value added, 2.6 million jobs, and 19% higher productivity than average.
The plan focuses on two main objectives: driving increased private investment and maintaining the UK's competitive edge in frontier technologies. These key technologies include advanced connectivity technologies (ACT), AI, cybersecurity, engineering biology, quantum technologies, and semiconductors - each with dedicated action plans.
The government also wants to make the UK the optimal location for tech businesses to grow and remain, by improving the regulatory environment (committed to reducing the administrative costs of regulation for businesses by 25% by the end of this Parliament), improving access to finance, and rolling out key infrastructure.
Importantly, the plan recognises that these frontier technologies aren't standalone verticals but enabling technologies that will boost other high-growth areas like advanced manufacturing, clean energy, defence, and life sciences – each with their own sector plans.
This plan builds on recent Spending Review funding announcements and represents a key component of the government's broader growth strategy, providing specific direction on priority areas for development.
Supporting the foundations for future growth with ease, speed and long-term stability for business
There is recognition that, while the UK has a strong pipeline of private investment, more must be done to support digital and technology businesses to scale and stay in the UK – with tech giants often listing elsewhere.
Key foundations to improve the business environment for digital and technologies cut across (1) boosting R&D investment, (2) increasing access to finance, (3) creating a skilled workforce, (4) enhancing infrastructure, (5) delivering pro-innovation regulation and (6) securing international partnerships.
techUK welcome these pillars of activity and have long called for specific actions to drive change within our industrial strategy response and Growth Plan.
A few measures we were particularly pleased to see, some of which techUK have long called for, include:
To boost R&D investment:
The government willreform and streamline UKRI funding routes to make it easier for businesses to navigate different funding streams and reducing the length of time between applications and funding decisions
Increasing access to finance:
Providing more support for companies scaling up in the UK and for companies in emerging sectors through new Industrial Strategy funding from the BBB. The BBB is committing to an additional £4 billion of Industrial Strategy Growth Capital. It is said that this catalyse investment in the Government’s eight growth-driving sectors, including the Digital and Technologies sector, crowding-in £12 billion of private sector capital.
Creating a skilled workforce:
Attracting top tech talent to the UK. A new Global Talent Taskforce will focus on sectors which have top talent requirements, such as digital and technologies. The government are also launching a Global Talent Fund designed to attract world-class researchers, together with their teams, to move to the UK.
Enhancing infrastructure:
Announced in the 10-Year Infrastructure Strategy, the UK will launch a Connections Accelerator Service which will boost connections support for demand projects, including prioritising those that guarantee high-quality jobs and bring the greatest economic value.
Delivering pro-innovation regulation:
Encouraging innovation and adoption of technology by developing and implementing a Digital Standards Strategy to improve co-ordination and coherence around objectives.
Securing international partnerships:
Building new international partnerships in digital and technologies such as the UK-US economic deal opening the way to a future transatlantic technology partnership.
Supporting frontier technologies
The six frontier technologies build on UK strengths and comparative advantage. These include ACT, AI, cyber security, engineering biology, quantum technologies and semiconductors. techUK recommended the government maintain support for the five key technologies from the Science and Technology Framework, as well as include cyber security as an additional technology, and we are very glad to see our recommendation on this adopted.
The government has outlined action plans and key measures to support each technology, with interventions to do so. To read full analysis on frontier technologies, from p.29 to p.51.
The government will also support foundation industries going forward including key minerals like gallium, germanium, silicon, and copper are crucial for semiconductors, and fibre optics for AI and communication networks.
A few measures we were particularly pleased to see, and techUK have long called for, within this section include:
Advanced Connectivity Technologies:
Demonstrating the strength of the ACT sector, initial market analysis identified over 11,800 UK telecoms firms, with 2,800 firms undertaking ACT-related work either as part of their core or wider (hybrid) business, contributing an estimated global GVA £11.1 billion in 2024.
ACT is estimated to deliver £14.6 billion productivity benefits to the UK’s GDP by 2035.
Welcome measures to support ACT include additional funding to commercialise solutions and expand lab infrastructure capabilities, ensuring spectrum availability to support ACT and deepening international collaborations with other leading ACT developing countries. There is a question on how this will build on existing coalitions.
AI:
Recognition that AI is playing an increasingly crucial role in driving technological advancements and economic growth, transforming entire industries and the wider economy. The UK’s AI footprint is growing rapidly, with more than £44 billion in private sector investment in UK AI businesses since July 2024.
Building on the AI Opportunities Action Plan and assigned funding of £2 billion through the Spending Review, the government outline how they will deliver an AI and copyright framework that supports AI development in the UK, along with a new AI adoption fund. Greater clarity is needed on what exactly this fund will support and how this will be delivered.
Cyber Security:
Recognition that cyber security is crucial for economic stability and to protect businesses from financial losses. The UK’s cyber security industry generates £13.2 billion in revenue across more than 2,000 firms.
Of note, the government is publishing a Cyber Growth Action Plan in Summer 2025 to provide a roadmap for future growth. This will be based on independent advice from experts at Bristol University and Imperial College London.
Engineering Biology:
The UK retains its position as Europe’s leading biotechnology hub attracting 40% of total VC investment across the continent. In 2024, the UK biotechnology sector experienced substantial growth in equity financing, raising £3.7 billion – an increase of 106% compared with 2023.
Great to see acceleration of regulatory reform to support the growth of engineering biology. This will build on the success of the engineering biology regulatory sandbox and partner with the RIO to smooth the path for responsible adoption of engineering biology products and services, including through new projects under the Engineering Biology Sandbox Fund.
Quantum technologies:
Recognition that the UK is already a global leader in quantum technologies. Our quantum footprint ranked second worldwide in 2023 and continues to attract significant private investment. It has benefited from consistent government investment.
techUK have long called for measures to prepare for the growth of this transformative technology and bring at the forefront of discussion about the UK's quantum future and how we plan for success.
We are pleased to see the government are providing a 10-year funding commitment for the UK’s flagship National Quantum Computing Centre (NQCC). This will expand its work on quantum computing development, readiness and adoption.
Semiconductors:
The UK’s semiconductor industry has grown at an annual rate of 8% over the past decade, and revenues are estimated to reach up to £17 billion by 2030.
techUK outlined our thoughts for bolstering semiconductors in our UK Plan for Chips.
We are particularly pleased to see the commitment to establishing a new UK Semiconductor Centre aiming to bring together industry, academia and government, and provide cross-sector leadership on semiconductor innovation, alongside ecosystem building and business services. With funding of up to £19 million, the Centre will look to develop long-term R&D and infrastructure roadmaps to guide future investment in semiconductors.
There is a focus on working with industry on the standards, norms and values that are essential to safe and effective adoption of new technologies, i.e., through the Regulatory Horizons Council and accelerated investment in AI assurance.
Going forward, create a truly enduring partnership with business to implement effectively and provide accountability
To ensure the government can deliver on the digital and technologies sector plan, techUK continue to reiterate the power of a partnership between the UK Government and the tech sector. Ultimately, true partnership will boost growth and productivity.
The UK Government and private sector must be pulling in the same direction to deliver change - particularly important to deliver on the upskilling needed for UK to seize the digital economy and make the UK an attractive and accessible place for the brightest and best researchers in the world through the Global Talent Taskforce.
We welcome the focus on accountability for delivery across government – with a specific table outlining action and responsibility across Whitehall. Along with the timeline of delivery from 2025 through to 2035.
For a robust approach to measuring the impact of this Sector Plan, the government will use official data and established economic statistics, combined with ‘innovative approaches and experimental methods to capture the dynamic nature of the sector and the complex relationship between technology and growth’. Along with drawing on a range of sources, including sectoral and regional data, and develop new datasets and surveys where appropriate to fill evidence gaps.
We welcome the use of a monitoring and evaluation framework to track progress and delivery, with key performance indicators. Currently metrics are illustrative and subject to the definition of the Digital and Technologies sector.
Alongside this, to support the ‘evidence gap’:
techUK point to our Local Digital Index, developed with The Data City and Open Innovations have worked with techUK and BT Group to build this tool. This is a vital source for the government to fill evidence gaps and develop a deeper understanding of how digital innovation is transforming economies and communities throughout the UK.
Our LDI brings together expanded data sets to create a multi-layered map of our digital ecosystems is to turbo-charge the Index as a tool for policy makers and partners across the public and private sectors. techUK will be building on this Index in 2025 to provide a robust evidence base for the UK government.
techUK continued action
Overall, the plan marks a welcome step to recognising the role of digital and technology. However, this is just the start, and now onus will be on delivery.
techUK call for the government to lean on industry bodies whose members hold the deep institutional knowledge as to what will, and won’t, work for delivery. Along with how the government could revise SIC codes to better measure, and capture, the digital economy.
techUK will be providing a full response and analysis of today’s announcements in due course, which will be uploaded to our Industrial Strategy Hub. For members, we are also hosting a webinar on Friday 27 June to discuss the strategy in more detail.
For more information, please contact:
Antony Walker
Deputy CEO, techUK
Antony Walker
Deputy CEO, techUK
Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
techUK bring members, industry stakeholders, and UK Government together to champion emerging technologies as an integral part of the UK economy. We help to create an environment where innovation can flourish, helping our members to build relationships, showcase their technology, and grow their business. Visit the programme page here.
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Sue leads techUK's Technology and Innovation work.
This includes work programmes on cloud, data protection, data analytics, AI, digital ethics, Digital Identity and Internet of Things as well as emerging and transformative technologies and innovation policy.
In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List.
She has been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and in 2021 was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the data agenda in the UK, Sue was co-chair of the UK government's National Data Strategy Forum until July 2024. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries for 2020 Sue has also been shortlisted for the Milton Keynes Women Leaders Awards and was a judge for the Loebner Prize in AI. In addition to being a regular industry speaker on issues including AI ethics, data protection and cyber security, Sue was recently a judge for the UK Tech 50 and is a regular judge of the annual UK Cloud Awards.
Prior to joining techUK in January 2015 Sue was responsible for Symantec's Government Relations in the UK and Ireland. She has spoken at events including the UK-China Internet Forum in Beijing, UN IGF and European RSA on issues ranging from data usage and privacy, cloud computing and online child safety. Before joining Symantec, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Masters Degree on International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
Associate Director - Technology and Innovation, techUK
Laura Foster
Associate Director - Technology and Innovation, techUK
Laura is techUK’s Associate Director for Technology and Innovation.
She supports the application and expansion of emerging technologies, including Quantum Computing, High-Performance Computing, AR/VR/XR and Edge technologies, across the UK. As part of this, she works alongside techUK members and UK Government to champion long-term and sustainable innovation policy that will ensure the UK is a pioneer in science and technology
Before joining techUK, Laura worked internationally as a conference researcher and producer covering enterprise adoption of emerging technologies. This included being part of the strategic team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University, focussing on regional social history. Outside of work she loves reading, travelling and supporting rugby team St. Helens, where she is from.
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.
Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign.
Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech.
Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
Programme Manager - Digital Ethics and AI Safety, techUK
Tess Buckley
Programme Manager - Digital Ethics and AI Safety, techUK
A digital ethicist and musician, Tess holds a MA in AI and Philosophy, specialising in ableism in biotechnologies. Their professional journey includes working as an AI Ethics Analyst with a dataset on corporate digital responsibility, followed by supporting the development of a specialised model for sustainability disclosure requests. Currently at techUK as programme manager in digital ethics and AI safety, Tess focuses on demystifying and operationalising ethics through assurance mechanisms and standards. Their primary research interests encompass AI music systems, AI fluency, and technology created by and for differently abled individuals. Their overarching goal is to apply philosophical principles to make emerging technologies both explainable and ethical.
Outside of work Tess enjoys kickboxing, ballet, crochet and jazz music.
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on Semiconductors and Digital ID.
He previously worked at an advocacy group for tech startups, with a regional focus on Wales. This involved policy research on innovation, skills and access to finance.
Elis has a Degree in History, and a Masters in Politics and International Relations from the University of Winchester, with a focus on the digitalisation and gamification of armed conflicts.
