Spring Statement promises digital skills backing

Philip Hammond’s latest Spring Statement has reconfirmed the government’s commitment to the UK’s tech businesses, with funding and support confirmed for new 5G networks, full-fibre broadband services and digital skills projects.

In the Chancellor’s most recent announcement, he confirmed existing plans to “keep Britain at the forefront of new technologies” and maintain its status as a “digital leader” thanks to new qualifications called T-levels, announced last year, as well as new funding commitments.

Hammond threw the country’s shortage of digital skills into sharp focus throughout his speech this week, including further information about T-levels, the first in a series of three technical qualifications that will prioritise tech-related skills. He also revealed the creation of a £50 million fund “to help employers prepare for the roll-out of T-level placements”.

He added: “Our tech sector is attracting skills and capital from the four corners of the earth, with a new tech business being founded somewhere in the UK every hour, producing world-class products including apps like Transferwise and Citymapper.”

Elsewhere, the government doubled down on its commitment to a world-beating 5G network around the country with a £25 million grant from the National Productivity Investment Fund (NPIF) to kick off testbed programs.

It also confirmed a £41 million fund for six SME projects that will investigate the potential benefits of 5G in rural areas, tourism and healthcare in the private and public spheres.

The statement also delved into plans to roll out £95 million of funding for full-fibre broadband services for 13 areas of the UK, including Blackpool, Cambridge and Coventry, as part of a wider £190 million pot released through the Industrial Strategy Challenge Fund.

Corporate tax as it applies to digital businesses was also singled out for change as Hammond described a need to “respond to the modernisation of the economy” and ensure firms that “generate value in unique ways” are taxed appropriately.

Commenting on the announcement, techUK CEO Julian David said the trade body supports the funding.

"T-levels can have a positive impact on improving digital skills. However, they won’t be successful unless businesses of all sizes have the capacity to engage effectively in their delivery," he said.