What’s driving rapid growth in the UK tech industry?

Fri 18 Aug 2023

The world of tech is big business. And it’s about to get even bigger.

The UK tech sector employs over 1.7 million people and adds over £150bn to the UK economy every year. Under the right conditions, UK tech could add a further £41.5 billion to the UK economy and create a further 678,000 jobs by 2025.

This hasn’t gone un-noticed by the UK government. Over the last 24 months we’ve been inundated with a proliferation of Parliamentary policies, frameworks, and roadmaps, all with the aim of putting the UK at the forefront of advancements in tech and AI and keeping us there.

So now is the ideal time to start a career (or upgrade your existing skills even further) in tech. Here are just a few of the reasons why:

  • Record levels of venture capital are being invested in tech startups
  • The UK has the highest number of tech unicorns in Europe
  • The rapid growth of UK tech in cities outside of London: Cambridge, Manchester and Edinburgh to name just a few
  • There’s strong support for UK tech from UK government (see below for a breakdown of strategy documents)
  • The establishment of the Digital Skills Council to ensure that digital skills are being enhanced in line with the needs of business.

It’s clear that the future of UK tech is bright. Here’s a summary of the UK government’s plans to make it happen:

2022 Digital Strategy

This document identifies and prioritises four key areas: digital foundations / security, ideas and intellectual property (IP), digital skills and talent, and financing digital growth.

While the document was welcomed in the tech sector, particularly for streamlining the regulatory process for innovation, it was criticised for being too short-term; most of the key actions end by 2025.

Digital Skills Council

As a result of the third key area in the 2022 Digital Strategy, ‘digital skills and talent’, the Digital Skills Council was set up. The Council brings together government and industry to drive forward industry led action, which addresses industry’s current and future demand for digital skills.

Digital and Data Strategy (2022-2025)

Another strategy that leads us to 2025, the UK Digital and Data Strategy focuses on government digital services and sets actions for better use of data, more efficient government, more digitally accessible government and the growth of digital skills.

National AI Strategy

The National AI Strategy was also written in 2022, but this time lasts for 10 years, rather than just to 2025. The strategy identifies AI as the fastest-growing deep technology in the world and addresses investment in AI, ensuring that all sectors and regions benefit from the growth of AI, and finally that AI is ‘governed effectively’.

However, this strategy is more of a statement of intent, with quantitative indicators, targets and actions set to be published at a later date.


These documents just begin to scratch the surface of how the tech sector is about to grow. In addition to these, the UK government has an International Technology Strategy, a UK Innovation Strategy and a Cyber Security Strategy which also indicates that the IT boom is here to stay.

It’s clear that those businesses employing staff with the most up-to-date tech skills will have a competitive edge going forward.

If you’re interested in upskilling yourself or investing in the future of your team, learn about our IT qualifications in disciplines such as cyber security, ethical hacking, software development and data & business intelligence analytics, or call 0330 057 1639.

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