Promises must underpin tech’s ambitions – Daily Business Magazine

Support for the tech sector must translate into investment to overcome the biggest barrier to growth, says NICOLA TAYLOR

Scotland has no shortage of ambitious founders, technical expertise and innovative companies, but access to investment is one of the biggest barriers to growth and scaling, particularly in the tech sector. While the UK Budget announcement contains many positive signals, more concrete and practical measures are needed to ensure support is accessible this side of the border.

Chancellor John Healey’s recognition of technology, AI and innovation as drivers of economic growth is welcome, as are the measures he’s announced to ease business costs and improve access to financial support – particularly for entrepreneurs and women in tech.

At ScotlandIS, we have long championed greater participation and’progression for women in technology, as well as stronger pathways between education and digital careers. Seeing these priorities reflected in government policy is a crucial step towards a thriving digital economy.

For many of our members, the biggest challenge isn’t necessarily starting a business but scaling it. Improved access to finance and growth opportunities for founders and start-ups is important, but there must also be a focus on providing better access to investment, public sector procurement and innovation programmes that help businesses grow, compete and remain in Scotland.

The £18 million investment in advanced chip design at the University of Edinburgh and £6m for Glasgow’s Scottish Event Campus are positive direct commitments to Scotland’s technology ecosystem.

We also strongly support the developments targeted at data centres and AI Growth Zones. Investment in these is critical to Scotland unlocking its AI ambitions. But cutting-edge development is only part of the picture. Policy also needs to address the accompanying challenges around energy costs, grid connectivity, infrastructure and business confidence.

Businesses need practical support to adopt AI, while workers need opportunities to upskill. We’re already seeing progress in education with the recent introduction of Scotland’s first principal teacher of AI literacy, but this must extend across all sectors. Cybersecurity must also remain a priority.

Digital and physical defence go hand-in-hand and, as digital threats become more sophisticated, we must see investment in one correlate with investment in the other. Scotland’s established cyber ecosystem can play a vital role in strengthening our national resilience.

Other measures including the alcohol duty relief for brewers and cider makers may seem unrelated to the technology sector – but with AI and cybersecurity becoming increasingly embedded across every sector, every business will eventually be a technology business in some way. Measures that allow other sectors to invest in their digital transformation will benefit our industry too, so we support any policies that relieve pressure from businesses during a turbulent economic period.

Ultimately, from a Scottish perspective, the success of the measures announced today will depend on how effectively they translate into investment, innovation and sustainable growth for Scotland’s digital economy. With the Scottish Budget still to come in December, we hope to see greater clarity on how both governments will support these ambitions.

Nicola Taylor is chief operating officer at ScotlandIS

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