ARTICLE
4 July 2025

UK Government Issues Tech And Digital Sector Plan

LS
Lewis Silkin

Contributor

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In the latest of our articles about the UK government's industrial strategy and sector plans, we're now taking a look at its tech and digital sector plan.
United Kingdom Technology

In the latest of our articles about the UK government's industrial strategy and sector plans, we're now taking a look at its tech and digital sector plan.

The government says that the digital and technologies sector has experienced sustained growth globally in the past decade, with imports of digital services growing by 116% and reaching £0.5 trillion in 2023.

The government has a grand vision that by 2035, the UK will be one of the top three places in the world to create, invest in and scale-up a fast-growing technology business. It aims to secure the UK's first trillion-dollar technology business. Achieving this vision means:

  • Boosting R&D investment
  • Increasing access to finance
  • Creating a skilled workforce
  • Enhancing infrastructure
  • Delivering pro-innovation regulation
  • Securing international partnerships

The government will prioritise the so-called frontier technologies that it believes have the greatest growth potential for the UK and that also support UK security and sovereignty. These are:

  • Advanced connectivity technologies
  • AI
  • Cybersecurity
  • Engineering biology
  • Quantum technologies
  • Semiconductors

Frontier technologies related to Advanced Manufacturing, Clean Energy, Defence and Life Sciences sectors are excluded as they are covered in separate sector plans.

As with the wider industrial strategy, the government highlights the regulatory burden. It has received feedback that regulation lacks flexibility and adaptability and says that it will reform its regulatory approach. It has committed to reducing the administrative costs of regulation for businesses by 25% by the end of this Parliament. This aims to help digital and technology businesses and increase opportunities to use AI. It has also launched a dedicated Regulatory Innovation Office (RIO) that will work across government to identify and address significant regulatory barriers.

The Government is reforming regulation of nuclear power to support the delivery of new nuclear technologies such as small and advanced modular reactors which could enable co-location of new nuclear technologies with energy-intensive facilities such as AI data centers. More broadly, it is exploring opportunities to clarify and provide greater certainty in digital regulation. It will assess how to improve regulatory coordination, support for small businesses, and pathways for frontier technology developers.

It is also committed to regulatory frameworks for data that allow digital and technology businesses to access reliable data in an ethical manner. The new National Data Library will also be an important resource to support businesses, helping join up data across the public sector.

Tech and business players should review the strategy and look for finance and other help that may be available to them.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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