Amidst a challenging fiscal landscape, Chancellor Rachel Reeves delivered her first Budget under the Labour Government—the first Labour Budget in 14 years that will define the next few years in office.
The Chancellor presented the Autumn Statement focused on fixing the foundations, balancing the ambition to “return to economic stability” while trying to create the right environment for investment.
The Budget introduces a substantial and lasting rise in spending, taxation, and borrowing. Budget measures are set to boost spending by nearly £70 billion annually over the next five years, with around two-thirds allocated to current expenditures and one-third directed toward capital investments.
The Chancellor presented several different announcements aimed at increasing investment while setting out changes to the Government’s ‘fiscal rules’, with a new emphasis on stability and investment.
What did the budget tell us about the economic outlook for the UK:
According to the Office for Budget Responsibility (OBR), the outlook for the UK economy is forecast to grow by just over 1 percent this year, by 2 percent in 2025, before falling to around 1.5 per cent which is slightly below the estimated potential growth rate of 1 2/3 percent, over the remainder of the forecast.
There was positive news for inflation. The OBR forecasts inflation will rise by 2.6 percent in 2025 due to budget policies, before falling back to the BoE’s target of 2 percent. The next interest rates cut is expected from the Monetary Policy Committee (MPC) next week.
The Chancellor has recognised the potential technology will fundamentally reshape the UK economy and support sustained economic growth, as demonstrated by the promise of a Cross-government Review of Technology Adoption for Growth, Innovation and Productivity.
Additionally, for the next financial year, all government departments have a 2% productivity, efficiency, and savings target. There is no doubt, technology will play a role in supporting government departments reaching this target.
However, there was a significant rise in employer national insurance contributions that will have an impact on businesses and their ability to invest.
Below we provide an overview of:
What tech focused announcements were there in the budget sector
Details of the Government’s Corporate Tax Roadmap
Other announcements of note to techUK members
techUK’s take on the budget
What tech focused announcements were there in the budget?
Below, we outline key recommendations that the Chancellor has acted on to better seize the role of technology and digitisation to drive investment and growth:
Cross-Government review of technology adoption for growth, innovation and productivity.
Announced in the Budget, the government will task the government Chief Scientific Adviser, Professor Dame Angela McLean, with National Technology Adviser, Dr Dave Smith, to lead a review on barriers to the adoption of transformative technologies that could enhance innovation and productivity, with a focus on the growth-driving sectors identified in the Industrial Strategy green paper. Reinforcing the government’s growth mission, the review’s recommendations will directly inform the development of the industrial strategy and sector plans that will be published alongside Phase 2 of the Spending Review.
In techUK’s Growth Plan, we call for using digital and technology adoption to improve the resilience, efficiency and quality of our public services, delivering better outcomes for UK taxpayers. We note that virtually every other business sector has a ‘growth plan’ predicated on greater digitisation and the use of new and emerging technologies.
Taking steps to encourage digital adoption in SMEs through e-invoicing and a renewed Digital Adoption Taskforce, with a £4 million pilots’ package to encourage tech adoption for SMEs
Announced in the Budget, the government will publish a consultation in early 2025 to establish standards and increase the adoption of electronic invoicing.
techUK’s Growth Plan called for prioritising digital record keeping including e-invoicing that can result in savings and productivity gains. E-invoicing can have huge advantages for the Government. It supports international trade and boosts revenue for Governments and enables real time visibility of the state of the economy.
Alongside this, to support more small businesses’ digitisation efforts, the government will extend the SME Digital Adoption Taskforce, and it will produce an interim report early in 2025. The Department for Business and Trade will soon announce details of a £4 million pilots’ package to encourage tech adoption for SMEs.
Additionally, we called for addressing productivity challenges and enable SMEs to unleash the benefits that AI can bring with better SME digitisation support. This included deliver a comprehensive digital adoption plan with clearly defined targets by 2030.
Closing the tax gap through modernising IT and data systems within HMRC
The Budget noted that the government will invest in modernising IT and data systems to improve HMRC’s productivity and improve taxpayers’ experience of dealing with the tax system, delivering the modern and digital service businesses and individuals expect.
In the Growth Plan, we pointed to specific failure on customer service from HMRC on delivery of the R&D tax credit, resulting in additional cost for the taxpayer and Government. We call for the Government to achieve real transformation by addressing the UK Government legacy IT and data challenge.
An extension of the Innovation Accelerators programme to continue to bolster high-potential innovation clusters.
The Government will extend Innovation Accelerators into 2025-26 to continue to bolster high-potential innovation clusters in the Glasgow City Region, Greater Manchester, and the West Midlands.
In our Growth Plan, we called for the Goverment to take a place based approach to deliver globally competitive tech clusters across all regions of the UK. This will help to harness and foster a dynamic investment and digital economy.
Funding doubled for the Made Smarter Adoption Programme.
The Budget announced that funding for the Made Smarter Adoption programme will double to £16 million in 2025-26, supporting more small manufacturing businesses to adopt advanced digital technologies and enabling the programme to be expanded to all nine English regions.
Our Growth Plan called for expanding the Made Smarter Adoption Programme given the North-West Made Smarter pilot programme, supporting technology adoption in the manufacturing sector, injected up to £115m in GVA to the region. While we called for expansion across sectors other than manufacturing, this is still a step in the right direction.
Protection for the UK’s R&D budget and boosting innovation through stability and effective delivery of R&D tax reliefs.
The Budget confirmed protecting core R&D budgets, with a real terms increase in funding for the National Institute for Health and Care Research to support the NHS and wider health and care system in driving a revolution in research, life sciences, med tech and data. The Government also committed to £25 million in 2025-26 to launch a new multi-year R&D Missions Programme to solve targeted problems that will crowd in private and third sector investment to accelerate delivery of each mission.
The Corporate Tax Roadmap, released alongside the Budget, outlined enhancing the administration of R&D reliefs by establishing the R&D expert advisory panel, along with maintaining the generosity of the rates for the merged R&D Expenditure Credit scheme and the Enhanced Support for R&D Intensive SMEs.
Our Growth Plan called for using the R&D tax reliefs ‘Expert Advisory Panel’ to inform recommendations around HMRC’s administration, operation and delivery the R&D tax credit.
techUK also called for maintaining stability of the credit to instil business confidence so maintaining the generosity of the rates is welcome.
Clarifying how full expensing applies to computer software.
The Corporate Tax Roadmap further outlined clarity on what qualifies for different capital allowances. The government will provide businesses with greater clarity on what qualifies for capital allowances to help make investment decisions. HMRC has already issued several guidance changes following discussions with industry and tax experts on common areas of uncertainty such as the treatment of computer software and the interaction between the annual investment allowance and full expensing.
techUK’s Growth Plan called for encouraging business investment, and that the tech sector reaps the full benefits of the full expensing regime by clearly including technology products in upcoming guidance.
The Government’s Corporate Tax Roadmap
The Corporate Tax roadmap, released alongside the Budget, aims to provide clarity about the business taxes and highlights some areas where the government expects to consider changes to ensure the tax system remains dynamic.
This includes detailed plans for improving the operation, accessibility and targeting of key schemes, including further reducing fraud and error, and improving HMRC customer experience. This predicates around priority areas of: predictability, stability and certainty.
Major commitments made in the Roadmap include:
Corporation tax: Capped the headline rate of Corporation tax at 25% for this Parliament. Along with monitoring international developments with a view to ensuring that the UK’s regime remains competitive.
Digital Services Tax: A commitment to removing the Digital Services Tax (DST) once the Pillar 1 global solution is in place. A review of the DST is due next year, and the Government will consider the timings and the format of the review considering the progress made on Pillar 1 implementation in the coming months.
Capital allowances: Maintained permanent full expensing for this Parliament. Maintaining core features of the UK’s capital allowances regime including the £1 million Annual Investment Allowance. Further exploring how to provide greater clarity on what qualifies for different capital allowances to help make investment decisions.
Full expensing: Will explore an extension of full expensing to assets that are bought for leasing or hiring.
R&D tax reliefs: Maintained the current rates for the merged R&D Expenditure Credit scheme and the Enhanced Support for R&D intensive SMEs. Enhancing the administration of R&D reliefs by establishing the R&D expert advisory panel, continuing to improve signposting and guidance on R&D reliefs. Launching an R&D disclosure facility by the end for 2024. Launching a consultation on widening the use of advance clearances in the R&D reliefs.
Tax administration: The Government will develop and consul on a new process that will give investors in major projects increased advance certainty. Update in spring on how the government will take forward it ambitions on modernising the technology the CT system relies on.
Other announcements of note to techUK members:
Capital Investment: Capital investment will increase by over £100bn over the Parliamentary term. An increase in public services investment which includes £3.75bn on the NHS, £1.4 on schools, £1.2bn on prisons and £1.4bn in road maintenance.
Employer National Insurance contributions: Increased rate by 1.2 points to 15%, cut the Secondary Threshold to £5,000 until 5 April 2028 and uprate with CPI thereafter. Increase Employment Allowance to £10,500, remove the £100,000 Employment Allowance eligibility threshold.
National Living Wage: Increase the national living wage by 6.7% to £12.21 an hour.
Carried interest: Increased the rates of Capital Gains Tax on carried interest to 32% from 6 April 2025, then move the carried interest taxation regime to the income Tax framework from 6 April 2026 onwards.
Capital Gains Tax: Capital Gains Tax increase the main rates of CGT to 18% and 24% from 30 October.
Carbon Border Adjustment Mechanism (CBAM): Confirming sectoral scope of the UK CBAM from 1 January 2027 to be aluminium, cement, fertiliser, hydrogen, and iron and steel. On this, techUK had called for delivering a response on the design and delivery of UK CBAM as soon as possible following the March 2024 consultation.
Women in the economy: The Government made announcments aiming to maximise women's contribution in the economy. This includes the British Business Bank investing £50 million in women-led funds in line with the ambition of the Invest in Women Taskforce to expand access to funding for female entrepreneurs,
Health: The NHS budget will rise by £22.6 billion by 2025/26, amounting to a 4% real terms growth rate across two years. Capital spending will also rise by £3.1 billion by 2025/26. This will cover new diagnostic equipment and surgical hubs.
HMRC modernisation: To be announced in Spring 2025. Increasing tax receipts from modernising HMRC systems and data.
AI Action Plan: The Government will soon publish the Artificial Intelligence Opportunities Action Plan, outlining a roadmap to leverage AI for growth, productivity, and improved public services.
techUK’s take on the Budget:
Responding to the Chancellor’s Autumn Budget, techUK CEO Julian David said:
“We are pleased to see that the Chancellor has acted on recommendations from techUK’s Growth Plan that will help drive business investment and productivity increases in the medium term.
These include improving technology adoption in public services through clear targets, taking steps to encourage digital adoption in SMEs through new pilots, e-invoicing, a renewed Digital Adoption Taskforce, and protecting the UK’s R&D budget. Clarifying how full expensing applies to computer software and a cross-government Review of Technology Adoption have the potential to be significant.
However, heavy tax rises on businesses will have an impact now and come before seeing the Government’s complete offer on growth.
To help businesses have the confidence to invest against this background of increased costs, the Government must act fast and bring forward its plans for AI opportunities and the detail of the Industrial Strategy.
techUK and our members stand ready to work closely with the Chancellor and her team in the weeks ahead to achieve this.”
Julian David
CEO, techUK
Julian David
CEO, techUK
Julian David is the CEO of techUK, the leading technology trade association that aims to realise the positive outcomes that digital technology can achieve for people, society, the economy and the planet.
Julian led the transformation of techUK from its predecessor Intellect in 2014, putting an increased focus on the growth and jobs the technology industry offers in a global economy. He has since led its impressive expansion driving forward the tech agenda in key areas such as skills, innovation, business success and public sector transformation. He leads techUK’s 90-strong team representing a thousand British based tech companies, comprising global and national champions and 600 SMEs. In 2020, techUK joined forces with TechSkills, the employer-led organisation that aims to improve the flow of talent into the digital workforce and open up access for all to high value tech jobs.
Julian represents techUK on a number of external bodies including the Digital Economy Council, the National Cyber Security Advisory Council and the Department of Business and Trade’s Strategic Trade Advisory Group. He is member of the NTA Advisory Board of DIGITALEUROPE and is a member of the Board of the Health Innovation Network the South London Academic Health Science Network.
Julian has over thirty years of experience in the technology industry. Prior to joining techUK, he had a series of leadership roles at IBM including Vice President for Small and Medium Business and Public Sector. After leaving IBM he worked as a consultant helping tech SMEs establish successful operations in the U.K. His personal interests include Football (West Ham, Balham FC and Real Madrid) and Art.
Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
As Associate Director for Policy Neil leads on techUK's public policy work in the UK. In this role he regularly engages with UK and Devolved Government Ministers, senior civil servants and members of the UK’s Parliaments aiming to make the UK the best place to start, scale and develop a tech business.
Neil joined techUK in 2019 to lead on techUK’s input into the UK-EU Brexit trade deal negotiations and economic policy. Alongside his role leading techUK's public policy work Neil also acts as a spokesperson for techUK often appearing in the media and providing evidence to a range of Parliamentary committees.
In 2023 Neil was listed by the Politico newspaper as one of the '20 people who matter in UK tech' and has regularly been cited as a key industry figure shaping UK tech policy.
Samiah Anderson is the Head of Digital Economy at techUK, overseeing the Digital Economy programme, which promotes how the UK digital economy and innovation can drive sustained economic growth.
With over six years of Government Affairs expertise, Samiah has built a solid reputation as a tech policy specialist, engaging regularly with UK Government Ministers, senior civil servants and UK Parliamentarians.
Before joining techUK, Samiah led several public affairs functions for international tech firms and coalitions at Burson Global (formerly Hill & Knowlton), delivering CEO-level strategic counsel on political, legislative, and regulatory issues in the UK, EU, US, China, India, and Japan. She is adept at mobilising multinational companies and industry associations, focusing on cross-cutting digital regulatory issues such as competition, artificial intelligence, and more.
She holds a BA (Hons) in Politics, Philosophy, and Economics from the University of London, where she founded the New School Economics Society, the Goldsmiths University chapter of Rethinking Economics.
Mia works to ensure that the UK policy and regulatory environment promote investment into the tech sector, recognising the role of digital and emerging technology towards future growth and productivity.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Policy and Public Affairs - Team Assistant, techUK
Oliver Alderson
Policy and Public Affairs - Team Assistant, techUK
Oliver is the team assistant for the Policy and Public Affairs teams, joining techUK in November of 2023. He assists the teams admistrative support, communication, and event production.
Prior to working at techUK, Oliver studied at Swansea and Bristol universities, attaining a masters in Policy Research. During this time he competed in debating competitions around the country where he discussed and deliberated various policy issues. Between his studies Oliver acted as a student assistant in mental health research for the SMaRteN student network.
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.
techUK's Growth Plan
We are excited to announce our Growth Plan, which outlines how supporting the UK tech sector will drive growth for the benefit of every nation and region in the UK
Our members develop strong networks, build meaningful partnerships and grow their businesses as we all work together to create a thriving environment where industry, government and stakeholders come together to realise the positive outcomes tech can deliver.
Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
As Associate Director for Policy Neil leads on techUK's public policy work in the UK. In this role he regularly engages with UK and Devolved Government Ministers, senior civil servants and members of the UK’s Parliaments aiming to make the UK the best place to start, scale and develop a tech business.
Neil joined techUK in 2019 to lead on techUK’s input into the UK-EU Brexit trade deal negotiations and economic policy. Alongside his role leading techUK's public policy work Neil also acts as a spokesperson for techUK often appearing in the media and providing evidence to a range of Parliamentary committees.
In 2023 Neil was listed by the Politico newspaper as one of the '20 people who matter in UK tech' and has regularly been cited as a key industry figure shaping UK tech policy.
As Head of Public Affairs, Alice supports techUK’s strategic engagement with Westminster, Whitehall and beyond. She regularly works to engage with ministers, members of the UK’s parliaments and senior civil servants on techUK’s work advocating for the role of technology in the UK’s economy as well as wider society.
Alice joined techUK in 2022. She has experience working at both a political monitoring company, leading on the tech, media and telecoms portfolio there, and also as an account manager in a Westminster-based public affairs agency. She has a degree from the University of Sheffield in Politics and Philosophy.
Edward leads the Digital Regulation programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Samiah Anderson is the Head of Digital Economy at techUK, overseeing the Digital Economy programme, which promotes how the UK digital economy and innovation can drive sustained economic growth.
With over six years of Government Affairs expertise, Samiah has built a solid reputation as a tech policy specialist, engaging regularly with UK Government Ministers, senior civil servants and UK Parliamentarians.
Before joining techUK, Samiah led several public affairs functions for international tech firms and coalitions at Burson Global (formerly Hill & Knowlton), delivering CEO-level strategic counsel on political, legislative, and regulatory issues in the UK, EU, US, China, India, and Japan. She is adept at mobilising multinational companies and industry associations, focusing on cross-cutting digital regulatory issues such as competition, artificial intelligence, and more.
She holds a BA (Hons) in Politics, Philosophy, and Economics from the University of London, where she founded the New School Economics Society, the Goldsmiths University chapter of Rethinking Economics.
Audre joined techUK in July 2023 as a Policy Manager for Data. Previously, she was a Policy Advisor in the Civil Service, where she worked on the Digital Markets, Competition and Consumers Bill at the Department for Science, Innovation and Technology, and at HM Treasury on designing COVID-19 support schemes and delivering the Financial Services and Markets Bill. Before that, Audre worked at a public relations consultancy, advising public and private sector clients on their communications, public relations, and government affairs strategy.
Prior to this, Audre completed an MSc in Public Policy at the Korea Development Institute and a Bachelor's in International Relations and History from SOAS, University of London. Outside of work, she enjoys spending time outdoors, learning about new cultures through travel and food, and going on adventures.
Mia works to ensure that the UK policy and regulatory environment promote investment into the tech sector, recognising the role of digital and emerging technology towards future growth and productivity.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team as the Team Assistant in February 2023 and as Public Affairs Manager in September 2023
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Policy and Public Affairs - Team Assistant, techUK
Oliver Alderson
Policy and Public Affairs - Team Assistant, techUK
Oliver is the team assistant for the Policy and Public Affairs teams, joining techUK in November of 2023. He assists the teams admistrative support, communication, and event production.
Prior to working at techUK, Oliver studied at Swansea and Bristol universities, attaining a masters in Policy Research. During this time he competed in debating competitions around the country where he discussed and deliberated various policy issues. Between his studies Oliver acted as a student assistant in mental health research for the SMaRteN student network.
Catch-up with all of the discussion and insights from techUK’s recent event, ‘Data, which direction? How can the UK best reform its data protection regime?’.
