techUK’s Autumn 2025 Budget submission

The tech sector is at the heart of the UK’s growth engine. According to latest figures, the digital economy now represents around 13% of total GDP, contributing approximately £286 billion in annual gross value added (GVA) and employing over 2.9 million people.

At a time of fiscal constraint, the Government has already taken significant steps, such as through the UK‑US Tech Prosperity Deal and the Industrial Strategy, to recognise the importance of tech and innovation.

Now is the time to deliver. Global competition means the UK must combine clarity, confidence and pro‑investment signals if it is to maintain its global status as a world-leading tech economy.

Our submission to HM Treasury sets out how the UK can reshape its policy, tax, infrastructure and regulatory frameworks to support a thriving tech ecosystem. It is structured around three pillars:

1. Competitiveness

We must ensure the UK remains one of the world’s top destinations for founding, scaling and investing in technology businesses. That means:

2. Public Sector

Digital capability and AI‑driven transformation are essential if public services are to become more efficient, user‑centric and future‑proof. We are calling for:

3. Security & Resilience

In a more contested, tech‑intensive global environment, resilience is a non‑negotiable. Our recommendations include:

Why this matters for the UK economy

When the tech sector thrives, the effects are not just felt by tech firms. Instead, these are translated into cross-economy productivity gains as firms gain access to new products and services that enhance their efficiency and reduce their operating costs. They are felt through the creation of high-paying jobs across the economy, value-driving exports and increased inward investment. In these ways and more, the successes of the tech sector are compounded, producing economy-wide benefits.

When faced with the political and policy uncertainty of the past few years, however, this positive cycle can slow. As uncertainty increases, investment slows, and the UK risks losing talent and capital to global rivals.

What the tech sector, and indeed the whole of the economy, needs now is a focus on delivery. In the face of immense fiscal headwinds, increasing global competition, and an accelerating digital transformation, we are calling on the government to accept our recommendations and empower the UK’s growth-driving sectors.

Conclusion

These measures will help the government deliver a coherent, stable and pro‑investment environment across tax, regulation, skills, infrastructure and resilience so that the UK remains a place where technology can confidently drive productivity, growth and national strength.

We invite our members, industry stakeholders and policymakers to download the full submission here.

We would also like to encourage members to attend our members-only webinar after the budget on Friday 28 November, where our expert panel will outline what the budget means for the tech sector and for the government. You can find out more here.

techUK's Policy and Public Affairs Programme activities

techUK helps our members understand, engage and influence the development of digital and tech policy in the UK and beyond. We support our members to understand some of the most complex and thorny policy questions that confront our sector. Visit the programme page here.