Ingenio Technologies, the IT support company based in Brighton, has responded to the Governments economic vision that is expected to help the UK economy.
The HMRC news story, published on 23rd January 2023, has several emphases but primarily talks about driving British investment into long-term tech advancements and using technological innovation to boost productivity, employment rates and average wages.
Hunt stated that he wants entrepreneurs, green energy providers and life science businesses to see the UK as the ‘best possible place’ to make their visions reality.
The Potential for Tech to Transform the UK’s Economic Prospects
Ingenio’s Managing Director, Simon Smyth commented: “The announcement is positive, albeit long overdue. We recognises that, despite current gloomy circumstances, and a year of forecast recession, the British tech sector has outperformed other industries consistently and substantially.”
In 2022, government figures show that tech-based businesses contributed £24 billion of investment capital to the economy, compared to £11.8 billion in France and £9.1 billion in Germany. As an outsourced IT support provider, Ingenio Technologies who also provides cyber security and hosted VoIP phone services across the South of England, fits directly within this core statistic.
UK companies also have higher investment from venture capitalists than competing EU countries and greater regulatory freedoms. They have hit a tech sector valuation of $1 trillion (roughly £830 billion) – an accolade only matched by China and the United States.
However, much of the vision seems to centre around attracting external investment or incentivising new start-ups to launch in Britain. The fastest outcomes might be best accomplished by investing in and supporting the existing SME sector to scale up and digitise legacy solutions, using that powerful tech sector to achieve results.
The government announced in June 2022 that it wanted to grow the digital economy by addressing skill gaps, infrastructure, and investment. Looking at effective, immediate ways to address these areas may be more economically viable than trying to reel in vast amounts of foreign investment when the baseline infrastructure still requires improvement.
Why Technological Investment is Imperative to SME Growth
Businesses in the UK (and globally) have faced significant challenges with a pandemic, political volatility, supply chain issues and economic turmoil. Those left standing have already proven their ability to adapt to ever more difficult circumstances.
The latest negative GDP projections indicate that speed is of the essence and supports the political focus on support for SMEs in need of resources, funding, skills and technology infrastructure to help them compete and thrive.
Investing in SMEs is doubtless an opportunity, with small and medium businesses comprising 99.9% of the total landscape, making enormous contributions to employment and economic health.
Even during a downturn, or perhaps especially so, tech is a critical factor, with 91% of small businesses surviving the pandemic due to tech investment and contributing an annual £216 billion to the economy, showing how tech is a catalyst for prosperity.
For many of the SMEs Ingenio Technologies works with, funding is the biggest barrier, with stretched budgets unable to include more advanced solutions that could be transformative in terms of productivity, competitiveness, and revenues.
While the treasuries endeavours to digitise the tax framework may have been stilted; with a little forward thinking, adept planning, and capable implementation, this may have been avoided and acted as a flagship case study in how tech can deliver real-world benefits.
Finding the Way Forward in UK Tech Implementation
Adding to his earlier comment, the Sussex IT Support Managing Director added: “For many SMEs, this step-change should be a call to action and the beginning of a movement to highlight the importance of technology and showcase how simplifying or automating processes and eliminating errors can be a pivotal factor in success.
Whether that means examining processes, identifying inefficiencies, investing in skills to take advantage of the rising prevalence of tech as a competitive resource, or looking for financing opportunities, the time is now.”
Reforms such as digitisation incentives or permitting tax deductible allowances for tech that enhances profitability could make a huge impact. If every British SME digitised their processes to match the efficiencies enjoyed by the top 20%, the treasury would benefit from an additional £232 billion a year in economic activity.
For now, skills and capacity are fundamental, and although Jeremy Hunt may have spoken passionately about his own experiences in small business, innovation and enterprise requires action.
“We will wait to see whether policy decisions align with the framework and hope that the March budget reflects a serious commitment to supporting those aims outlined – assuring businesses that, if they commit to advancement through tech, they will benefit from financial sector support to achieve their aspirations”, concluded Simon.
Publisher:
Woya Digital PR
Published by: Steve OBrien