Why Technology is the Keystone of the Labour Government’s Growth Mission
Ahead of the Labour Party Conference, techUK’s Head of Digital Economy, Samiah Anderson sets out the important role that tech will play as the new Labour Government aims to achieve its most important mission, economic growth.
In today’s rapidly evolving economic landscape, the Labour Government's vision for growth hinges on the success of one of the fastest growing ecosystems in the UK: technology.
The UK tech sector is the UK’s modern economic success story, with its Gross Value Add (GVA) contribution to the economy rising by over 25% from 2010 to 2019 and now exceeding £150 billion per year. The UK’s digital sector is also on track to become the biggest single sector contributing to GVA, due to its size and a faster growth rate than other sectors and the wider UK economy. Artificial Intelligence (AI) technologies alone are projected to boost UK GDP by up to 10.3% by 2030 and bring significant benefits for UK businesses including increased productivity, efficiency and technological possibility.
As the sector advances at an unprecedented pace, its integration into every facet of industry and daily life becomes increasingly critical. Here’s why technology is not just an enabler but a driving force behind the Labour Government's growth agenda.
Digital Transformation Across All Sectors
One of the most significant trends shaping the current economic environment is the digital transformation of various industries. No sector is immune from this shift; whether it's healthcare, manufacturing, finance, or education, digital technologies are redefining how businesses operate and deliver value.
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Healthcare: Digital health solutions, such as telemedicine and AI-driven diagnostics, are revolutionising patient care and operational efficiency.
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Manufacturing: Industry 4.0 technologies, including IoT and robotics, are enhancing productivity and creating smarter supply chains.
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Finance: Fintech innovations are disrupting traditional banking models, offering more personalised and efficient financial services.
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Education: E-learning platforms and digital tools are making education more accessible and adaptable to individual needs.
The widespread digitisation across sectors underscores a broader trend: technology is not merely an add-on but a fundamental component of the economic growth mission.
Driving Innovation and Competitiveness
Investing in tech infrastructure and fostering a culture of innovation are crucial for maintaining and enhancing national competitiveness. Countries that lead in technological innovation often set the standards for global markets, attract top talent, and drive economic growth.
Moreover, technology fuels innovation by providing tools and platforms that enable new business models and services. For instance, while advancements in cloud computing have democratised access to digital services and applications that can businesses to become more adaptable, resilient and competitive.
Enhancing Productivity and Efficiency
Technological advancements are pivotal in boosting productivity and operational efficiency. Automation and AI, for example, can streamline repetitive tasks, allowing SMEs and human resources to focus on higher-value activities. Enhanced digital adoption for UK SMEs could add an estimated £232 billion to the economy, while helping solve the productivity challenge, and create a return on investment on public money.
Fostering a Tech-Driven Ecosystem
To capitalise on the potential of technology, the Labour Government is focusing on creating a conducive ecosystem for tech growth. This includes supporting research and development, providing incentives for tech startups, and fostering collaboration between the public and private sectors. Such an ecosystem encourages innovation and ensures that technological benefits are widely shared across the economy.
Technology should be seen as a partner on the road to accomplishing the Labour Government’s growth mission, driving transformation and progress across every sector.
TechUK is working closely with our members to ensure that this message is heard loud and clear at the Labour Party conference. In the run up to the Budget on October 30th, we’ll be setting out more details about how technology can contribute to that growth mission through techUK’s Growth Plan and the creation of a new member led Growth Council.
Samiah Anderson
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.