The UK is cementing itself as a hub for technology and as a clear leader in Europe when it comes to digital tech investment, digital skills and collaboration within ecosystems. This is set to continue as the latest Tech Nation Report revealed that digital tech investment is increasing — reaching £6.8 billion, 50 percent higher than any other European country. This rising of the UK’s tech credentials is now vital for business growth, connectivity and efficiency; and the the benefits aren’t exclusively being seen in London.
Technology allows businesses to transcend geographical boundaries and we’ve experienced this for ourselves. We founded the company in Wales, but can do business anywhere in the world. Tech Nation found that the digital tech sector has added nearly £400m to the Welsh economy and we at Delio are proud to be a part of that driving force. This impressive growth rate shows that perceptions about starting a tech business outside of London and specifically in Wales is changing.
We chose to locate in the South Wales cluster because of access to IT skills and support from the Accelerated Growth Program. Programs such as this are supporting technology and entrepreneurship in Wales and driving strong economic growth. With the affordable cost of living, availability of office space and support of digitally-focused government schemes, Wales is becoming an increasingly attractive place to locate.
Being based in regional hubs still allows you access to a number of other UK advantages, making it appealing for start-ups — tax relief being one. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) by UK government are designed to help smaller higher-risk trading companies raise finance by offering a range of tax relief to investors who purchase new shares in those companies.
We also have Entrepreneurs’ Relief which means that you’ll pay tax at 10 percent on all gains on qualifying assets up to £10 million. R&D tax credits also enable entrepreneurs to be rewarded for innovating in their sector. All of these benefits are encouraging digital start-ups to base themselves in the UK and this kind of support is vital for the success of these organizations — helping create a thriving UK tech hub.
This continued growth will likely be a great source of job creation across the regions. The growth rate of digital jobs in the UK was more than double that of non-digital jobs between 2011 and 2015. These jobs are skilled and well paid and there has been a steady increase in the salaries of technology professionals.
This has potential to have an accelerator effect as more jobs create more spending which will have positive effects on growth. Creating an established tech community in across the entire breadth of the UK and seeing the success that comes out of this can inspire a nation of innovators and encourage development in other sectors that can benefit from the expertise and resources in technology that are available.
Universities are essential to all digital economies. In the UK we have access to a number of great universities providing an educated workforce to help push forward developments in technology and business. The UK is home to eight of Europe’s top 20 universities which puts us in a strong position to compete internationally. Universities generate skills and innovation while attracting investment and talent. Not only are these graduates from top ranking Universities but they have experience using the latest in modern technology and bring a new way of thinking to the sector.
