Clare Barclay, CEO, Microsoft UK, welcomes the Government’s emphasis on driving economic growth, but argues that we need an “advanced, reliable and robust digital infrastructure” if that ambition is to be fulfilled.
With the King’s Speech, the new Labour Government reinforced its mission to deliver economic growth by taking the brakes off Britain.
Its message is a strong signal that the UK is open for business and ready to unlock investment. And if successful, this much-needed growth will help fund public services, ease the cost-of-living crisis, and create opportunities for all.
I welcome its ambition.
Government has the power to reform planning, support critical infrastructure, and attract private investment. And while the challenges our country faces are considerable, it is encouraging to see our new leaders address them with energy and impetus so early in the parliament.
Where we do have strength, and where we must continue to invest, is in our digital economy.
Recent research from Public First gives us a sense of the size of the prize, showing that digital technologies could add £550bn to the UK’s GDP by 2035. What’s more, the UK already has the most advanced digital economy in Europe.
Securing leadership
But that place on the podium is by no means guaranteed. Our global competitors are far from idle and, if we fail to invest enough or create the right regulatory environment, we risk sliding down the rankings.
So how do we secure the UK’s leadership in an increasingly digital global economy? I believe it comes down to how we regulate, facilitate and educate.
Let’s start with how we regulate. Our new government has limited financial room for manoeuvre, but there’s one low-cost lever it can pull immediately: regulation.
A world-leading digital economy needs world-leading digital infrastructure, and government can use pro-growth regulation to accelerate investment in datacentres, ultrafast broadband, and 5G networks.
These technologies are the backbone of advanced AI-enabled economies.
I was encouraged to hear the recent announcement that two planning appeals for datacentres are already being reviewed by the Deputy Prime Minister.
The new government will have to facilitate better connectivity, too: by upgrading the national grid to connect datacentres to clean sources of energy, for example, and by signalling very clearly that the UK is pro-business and pro-growth.
That means not only relying on our existing strengths, such as our world-class universities, rule of law, and talented workforce, but by building on them.
Government can facilitate this, creating a pro-competition environment that attracts existing businesses and encourages the creation of new ones.
A predictable, stable operating environment will be a magnet for business investment.
Digital skills
We must also focus on how we educate people across the UK. A digital economy needs a digital workforce, one that has the right skills to take advantage of innovations in technology.
Advances in areas like AI are completely changing the nature of work and business, and public sector leaders are worried that a lack of skilled talent is holding back their ability to deliver better services.
Improving connectivity with gigabit broadband and 5G can help on both sides of the skills equation. It joins up talent with opportunity, be that opportunity to learn digital skills, or opportunity to participate in the digital economy.
And each of these skilled workers will help the UK succeed.
‘Brighter future’
In my day job as CEO of Microsoft in the UK, I get to see first hand how organisations across the UK are using technologies, including AI, to be more creative, save time, serve their customers in new ways, speed up product development and, ultimately, grow.
But none of this is possible without an advanced, reliable and robust digital infrastructure. Get that in place, and it will unlock investment, drive growth, and help build a better, brighter future for the UK.