The pomp and circumstance of the King’s Speech is one of the constants of the UK politics, but the first look at the new Labour government it sets the tone for the next few years.
After a sometimes febrile eight years since the Brexit referendum (Sir Keir Starmer is the sixth Prime Minister since that vote in 2016), the size of Labour’s majority means that the policies announced may just be the foundation of what the tech sector will be working with in the years to come.
TFN got the views of a series of tech leaders on what the King’s Speech meant for things like the environment, growth, cybersecurity, AI, and entrepreneurship.
Green Economy and Climate Technology
Following the scepticism towards from green initiatives from some in the previous Conservative government, many have welcomed the Labour government’s commitment to the environment.
“A new government with green prosperity at its heart is helpful to give the business community the confidence it needs to make critical investments into future growth,” said John Hartley, the CEO of climatetech Lividian. Referring to their plans to invest heavily in their UK base and create hubs for their decarbonisation tech, he added, “now is the time to unleash UK climate technology as we build GB Energy, deploy new infrastructure and use this expertise to support at scale and create millions of green jobs.”
Digital Transformation and Smart Data
The government is proposing a Digital Information and Smart Data Bill, which, in part will create regulation — and through that more certainty — for smart data schemes. One sector is that expects to benefit is open banking.
“The future of open banking relies on a successful transition from the current competition remedy to a long-term regulatory framework,” said Open Banking Ltd’s CEO Henk Van Hulle. “Prioritising this legislation will unlock further benefits for consumers and small businesses.”
Open Banking Ltd’s Richard Newman also said the benefits could go further. “Consumer empowerment is core to open banking and one of its biggest achievements has been in supporting financial inclusion, expanding access to financial products and services to historically underserved citizens,” he said. “This legislation will allow the expansion of smart data into sectors beyond banking, for example in the energy and transport sector, unlocking further opportunities for consumers.”
Cybersecurity and Workforce Development
The Cyber Security Bill aims to support the UK as it faces a barrage of cyber threats, whether from criminals or other states. Code First Girls’ CEO Anna Brailsford pointed out how necessary it is. “Cybersecurity in the UK is a growing concern for individuals and businesses – plus national defence. 79% of businesses and 83% of charities reported phishing incidents in the past year alone,” she said.
However, she pointed out that the sector needs professionals. “There is still a chronic lack of professionals who are qualified enough to work in the sector,” she said. “The shortfall of suitably skilled workers in cyber is around 11,200 and only 17% of the cyber workforce is female.”
And for what will be a long-term problem, Brailsford suggests solutions to create a diverse and consistent workforce. “A way this can be achieved is through offering alternative pathways into tech, whether it be free education programs, reskilling initiatives, or upskilling opportunities for the current workforce,” she said. “This alone will help ensure the development of a robust and diverse talent pipeline. If we don’t do this, the problems will only increase.”
Workers’ Rights and Well-being
The Labour Party has, traditionally, been the party of the worker, and the King’s Speech included a commitment to improve workers’ rights with ‘security, respect and dignity at work’. But what ‘worker’ means has been transformed by technology.
Tanya Channing, Chief People and Culture Officer at Pipedrive, is waiting for more clarity on what the government will actually do. “With ongoing pressures around the work/life balance, there needs to be renewed focus on the ‘right to disconnect’,” she said. “Across Europe, France, Portugal, and Spain are leading the charge for employee empowerment. It’s critical for the UK to follow, and help promote positive change within business, allowing the flexibility and freedom to switch off, recharge, and come back more productive.”
She highlighted that while many are valuing the increased flexibility work can offer, it comes with risks. “Switching off from work is incredibly important, particularly as the lines between work and home blur with remote and hybrid roles,” she said.
AI Regulation and Future Skills
Although Sir Keir has not echoed his predecessor’s very light touch approach to AI, his government has shied away from introducing regulation. This might not be a positive for the industry, though.
Daniel Pell, VP and Country Manager for Workday said, “it’s important for the future, particularly as our new report finds that overcoming the trust barrier is essential for AI adoption.” He added that the Workday report showed it was a major barrier. “93% of both UK employees and leaders have concerns relating to trust in AI today. Overcoming this is critical, as AI can only reach its full potential if it is responsible, trusted, and aligned to business outcomes.”
Pell also said that supporting AI, potentially worth £119 billion to the UK economy was particularly important “at a time when the UK has struggled to make meaningful productivity growth for a decade and a half, we must do all we can to develop and implement the responsible AI technology that can unlock this productivity windfall.”
The need for upskilling was also highlighted by Buck Adedapo, International Expansion Lead at freelancing platform Fiverr. “It was promising to hear that the development of ‘Skills England’ will put employers at its heart. Putting policies in place that encourage upskilling, innovating and developing their AI skills is crucial,” he said. “Fiverr’s 2024 Future Workforce Index Report found that over 80% are willing to pay, on average, a 45% higher wage for AI skills. However, over 40% of business leaders also say they cannot find the skills they need amongst full-time workers — with 96% seeking out freelancer and self-employed contractors.”
Entrepreneurship and Economic Growth
The Prime Minister has said that economic growth is at the heart of his plans for the country. And that needs entrepreneurship, said Deann Evans, EMEA MD at Shopify. “A focus on energy, housebuilding and workers’ rights are fantastic first steps of getting the country back on track,” she said. “But with our data showing 61% of the UK are looking to start their own businesses, many of these in the next year or two, there’s an opportunity to put more focus in this area.”
“Entrepreneurship is a key growth driver for the UK,” she added. “As the UK looks to achieve stronger economic growth in the coming months and years, the relationship between government and business will be paramount to its success.”
Following their landslide election victory, the Labour Government’s first King’s Speech has generally been welcomed. However, that landslide means the government is in a rare position of Parliamentary strength, at least until the next election.
While it remains to be seen how they use that position, and how they will build on the foundations they have laid just a few weeks into a four- or five-year term of office, it would certainly appear they are enjoying a honeymoon with the tech sector.
