The UK must introduce more tax incentives for start-ups and invest in digital infrastructure if it is to remain competitive, the boss of North East software firm Sage has said..
Sage CEO Steve Hare said that while London has traditionally been seen as Europe's tech hub, there are concerns that it is losing ground to countries such as France. In a piece posted on Mr Hare's LinkedIn channel, he pointed to the "rapidly evolving global tech landscape" and suggests the UK should create a "single digital identity" that would allow streamlined access to public services and the private sector, doing away with the need for multiple passwords and reducing administration.
The idea has been successfully implemented in Estonia, where a state-issued digital identity system has been running for 20 years. Estonians can use their 'eID' to pay bills, vote online, sign contracts, shop, and access their health information, among other things.
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In January the Chancellor Jeremy Hunt set out long term growth ambitions for the country, suggesting Britain should become the "world's next Silicon Valley". Mr Hare thinks this should be backed up by prioritisation of digital identity system.
Mr Hare said: "While London has traditionally been seen as Europe’s tech hub, there are concerns that the UK is falling behind, particularly when it comes to access to financing and Government support. As a global company with a significant French business - we commend the intense focus on tech, but it’s a wake-up call for the UK Govt if the UK is to remain competitive in a rapidly evolving global tech landscape."
He added: "France’s success in the tech sector is not just down to government policies, but also its position as a driving force in the ambitious EU agenda to digitize its economies, known as the “digital decade.". The EU has set out targets and plans for things like e-invoicing all intra-EU business by 2028, which will accelerate the tech sector and create a more level playing field for all businesses in the EU.
"As a leader in the UK tech sector, I’m optimistic about the future, but we need to be proactive in addressing the challenges we face. We must work together with government, investors, and other stakeholders to create an environment that supports innovation and growth. Fully digitising the operating environment for SMEs would deliver £232bn of value to the economy. "
Mr Hare also joined North East tech growth champion Sunderland Software City in welcoming the creation of the new Department for Science, Innovation and Technology in last month's Government reshuffle. He said the upcoming Budget in March would be a crucial moment for the Government to demonstrate its commitment to the tech sector.
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