More than 260 founders, investors and tech leaders have signed an open letter urging Prime Minister-in-waiting Andy Burnham to put British tech at the heart of the UK’s economic future, with calls to unlock investment, embrace AI, reform regulation and give homegrown start-ups and scale-ups greater support.
Led by advocacy group Startup Coalition and Founders Forum Group, the ‘Rebuild Britain’ open letter argues that while the wider British economy has experienced “slow but vicious decline” over the past two decades, the tech sector has remained a standout success story.
It comes just weeks after Northern tech leaders told Prolific North they wanted a potential Burnham No 10 takeover to focus on regional investment, infrastructure and creating the conditions for tech businesses to scale outside of London.
READ MORE: ‘We need continuity’: Tech leaders reveal their priorities for Prime Minister contender Andy Burnham
The letter, signed by prominent leaders including UK Tech Week founder Stuart Clarke MBE alongside founders of major businesses across the UK such as Gousto, points to more than 50,000 new tech companies being incorporated in the UK last year, with the ‘fastest growth’ happening outside London.
They write: “For nearly 20 years, the story of the British economy has been one of slow but vicious decline. All the while, there has been a very clear bright spot: Britain’s tech startups and scaleups and the broader innovation economy. Over 50,000 new tech companies were incorporated in the UK last year alone – with the fastest growth happening outside of London.
“These aren’t ‘normal’ businesses. Yes, they create high-skilled jobs, empower staff through wealth-generating share options and pour vital revenue into our public services through the taxes they pay. But this is no longer enough. Tech is no longer just an engine of growth, it is a source of hard power in an increasingly volatile world.
“When governments can switch off AI, our traditional industrial base and our new technological one needs to be more closely intertwined than ever. To be truly sovereign in the AI age and for Britain to secure its place in the world, we must create the indispensable companies of the future.
“Progress has been made. There is much in the past two years that can be retained and built on. The policy foundation and the talent in Government is there, but we do not have the luxury of time.
“The coming years will be critical in making or breaking Britain as a tech power.”
The key asks for Burnham include measures to: incentivise and support ambitious firms across the UK through the tax and investment landscape; to unlock the capital to back high-growth companies, especially in pension funds; ‘bulldozing’ the ‘computer says no’ regulatory mindset approach to AI; backing British tech with real procurement spend; and prepare for an AI future by retaining talent in government and institutions like AISI and the Sovereign AI Fund.
READ MORE: From Manchester to Number 10? What business wants from an Andy Burnham premiership
That call for a more ambitious approach to AI also echoes comments Richard Potter, GM and VP at UiPath has previously made to Prolific North. He recently said the next prime minister has an opportunity to be “even more ambitious” in creating the conditions for technology businesses to scale, while striking the right balance between AI growth and regulation.
The open letter also states that the challenges facing the tech sector cannot be separated from the wider issues affecting the economy.
“We want to be clear we do not see these are options to trade off against each other. We all need to see progress together,” the letter continues.
“Our teams can’t afford to live near the great jobs we’re creating because we can’t build.
“Our sky-high energy costs mean we risk being left not only with an uncompetitive industrial base but without the AI infrastructure we’ll need too.”
The letter also suggests Britain risks losing entrepreneurial talent overseas through what it describes as a ‘doom loop of rising tax and failing public services’.
Despite those concerns, the letter ends on an optimistic note, arguing that Britain has the opportunity to become a global tech leader if government and industry work together.
“We are at a precipice. Yet, each and every one of us believes in Britain and what we can achieve. We have every opportunity to lead the world in the key industries of the future, and in doing so spread wealth throughout each and every part of our great nation.
“All of us stand ready to help. We’re ready to build with whoever wants to build with us.”
Did you know Prolific North has a weekly tech newsletter? Sign up for free here!
