How can the UK unlock the full potential of tech scale-ups?

How can the UK unlock the full potential of tech scale-ups?

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Published Apr 4, 2025
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The UK has firmly established itself as a leading tech and science nation. Our tech sector is now valued at over one trillion dollars and ranks first in Europe and third globally for AI innovation and VC investment. This is driven by a robust innovation and growth ecosystem, a thriving and entrepreneurial start-up environment, and solid building blocks for high-growth firms, including an outstanding science research base.

The UK also boasts a network of world-leading universities, a depth of technical talent, strong capital markets, the stability of law, and even a time zone favourable to supporting scaling tech firms globally. This gives tech founders a strong basis to start from and begin the initial growth stages of their business. However, as businesses scale, the UK’s business environment creates barriers to that growth.

The government can, and must, do more to support these ambitious growth-driving businesses driving vital innovations and creating jobs around the UK. Despite representing less than 0.6% of the SME population, scale-ups account for over 55% of UK SME output at £1.45 trillion. They were also, on average, 42% more productive than other firms in the same sector. Scale-ups are also tech-curious, and investment in tech and AI are defining factors in scale-up success. According to recent research, 90% of scale-up business leaders credit technology investment as a critical growth driver, with 23% already fully AI-integrated.

techUK and our members welcomed the well-thought-out initiatives within the AI Opportunities Action Plan to boost the UK’s capabilities. These will have positive effects across our society and economy. But now that the government has set out a plan, it is time to deliver. Tech scale-ups will also be crucial to this delivery, whether providing solutions for the public sector to adopt AI or working with the Regulatory Innovation Office and relevant regulators on pro-innovation initiatives.

The UK is also the market leader in emerging technologies, including quantum. The UK has 51 active, high-growth quantum technology companies, the largest amount of quantum start-ups in Europe, and 12% of global private equity investment into the technology. Many of these start-ups have the potential to scale with the right environment and government support to do so. The UK’s National Quantum Strategy Missions15 was a great start, but now action and sufficient funding must follow to enable delivery.

Ultimately, the government must use its full growth offer, most importantly the industrial strategy, to simplify operations and reduce costs for tech businesses to invest and scale-up in the UK.

In March, we released our Scale-up Action Plan where we set out how backing UK tech scale-ups will be vital to support the UK Government's ambition for growth. Our Plan has been developed with our members and Scale-Up Council, along with input from experts and stakeholders from across the scale-up ecosystem, including the BVCA and ScaleUp Institute.

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Robin Beattie

5mo

Great insights here from Mia Haffety, the Scale Up Council and wider team at techUK. As someone working with UK Start-ups, I see firsthand the incredible innovation happening here. The government initiatives mentioned in the Scale-up Action Plan show promise, but consistent execution will be key. 

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John Hill

A single candle in the darkness can light a room. Let’s plant a forest of candles with the truth to light the world

5mo

#27seconds #pipelineheros

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Pete Rai

Senior Project/Program Consultant | Telecoms | PMI®| CAPM®| PMP®| APM®| EITCI®| IOSH | ITIL v3

5mo

 A powerful and inspiring message from techUK. It is encouraging to see such a strong spotlight on the UK’s global leadership in tech, AI, and quantum innovation. The £1 trillion valuation and our position as Europe’s tech frontrunner are a testament to the ingenuity and resilience of our start up and scale up ecosystem. The emphasis on enabling high-growth businesses to thrive is crucial. These firms may be few, but their impact on the economy, productivity, and job creation is immense. With the proper government support and a clear industrial strategy, the UK can unlock even greater potential, driving innovation not just for economic gain but for societal and environmental benefit too. It is great to see techUK championing this agenda and pushing for action. Now’s the time to turn plans into progress and back the brilliant businesses shaping our digital future.

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Future Tech Jobs

5mo

Great insights on the pressing need for the UK to nurture its tech scale-ups and bridge the skills gap. At FutureTechJobs, we’re keenly focused on matching emerging tech talent with the high-growth startups and scale-ups that need them most. By aligning industry needs—like increased mentorship, access to funding, and supportive regulatory frameworks—with practical talent solutions, we can create a virtuous cycle that accelerates UK innovation. Excited to see more industry collaborations and government-backed initiatives that enable founders, technologists, and jobseekers to work toward a shared goal: bolstering the UK's position as a global tech leader

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Duncan Chapple

AR Leader for AI Innovation in Sustainable Manufacturing, Telecoms & Energy | Former Industry Analyst | Analyst Observatory Co-director

5mo

Neil Pollock

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