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Britain's success depends on its openness - to the single market, to global talent, to investment, to collaboration and to data flows.

Speaking at the techUK Annual Dinner, our president Jacqueline de Rojas told guests that the UK must be open for business with the tech sector the beating heart of the UK economy.

 

 

 

 

 

 

 

 

 

 

She said:

Good evening Lords, Ladies, gentlemen, honoured guests.

Welcome to the techUK annual dinner. You all look absolutely lovely! As usual the technology gliteratti have done us proud.

Personally I am channelling my inner dragon this evening in support of the Welsh team against, I was going to say Portugal, but it is rather a one man show in Ronaldo.

So anyway, back to business....

I would like to start by saying that the UK is open for business.

These have been a dramatic few weeks and in many ways without parallel.

So much has changed. So much is changing and so much is unknown.

Many across the world may be looking at the UK with some puzzlement.

And I would say to them, don’t think for a single minute that the UK is turning in on itself or turning away from the world.

Our instincts to be open and innovative are far too strong for that.

The people in this room, across this amazing city and across this nation are the same smart, entrepreneurial, innovative and open-minded people that they were two weeks ago.

The UK will bounce back. We will find our way. We will be true to ourselves. And we will play our part in the world.

But for us here this evening, I suggest there is a little work to be done.

We can’t understate the challenge that stands before us.

Two weeks ago the British public tore up the rule book & voted to leave the EU. Defying the advice of the experts. Including many of us in this room.

But however you feel about the Referendum result, this is an opportunity not to be wasted.

We must adapt to this new reality and work out how we can turn it into an opportunity.

Do I have all of the answers?

I don’t

But we tech leaders are an optimistic and resilient bunch and already some of the conditions for success are becoming clear;

From the many conversations that techUK has had with its members one word resonates: openness

We need to secure open access to the single market and ensure we’re open to the best global talent.

We need an open borderless world for data and we need to open the gates to investment in our digital infrastructure.

Finally, perhaps most importantly, be open to collaboration as we forge this new future.

So let’s unpack those five points.

Beginning with the first:

Open access to the single market matters.

Whilst some suggest that the benefits of the single market are a myth. Our members believe otherwise.

They have consistently argued that single market access matters.

It matters because it is easy to do business, forge partnerships and compete on an equal playing field.

It matters to their customers – banks, insurance companies for example– who depend on the EU financial services passport to work across the EU.

If we are out of the single market then business will flow out of the UK. We are witnessing that already.

So we need to quickly know what the options are, what the alternative arrangements could be, and the extent to which business could, not only be retained in the UK, but thrive as we move forward.

I can’t stress the importance of this enough. Single market access isn’t a vague term. It has precise meaning and broad implications for a sector that is deeply integrated across Europe.

My second point is about people:

Staying open to global talent also matters.

Look at any successful UK tech business. From the multi-national to the boot strapped start-up, and you will find brilliant people from around the world.

It is people that drive innovation and build successful businesses, not technology.

Tech businesses need reassurance now. Not only that they will be able to retain their staff but also that the UK will remain open to the very best global talent.

It seems likely that a line has now been drawn under free movement.

If this is the case, then our sector, the tech sector, the UK’s fastest growing sector needs to be at the forefront of a smart immigration system.

One that is smart not just in the way key skills are defined and prioritised, but one that is frictionless. Let’s start designing this now.

In parallel it is up to us, the leadership in tech to focus on growing or own talent domestically. Build our own skills pool, invest in young people, and engage right across the diversity spectrum to train, retrain and encourage more people to join the tech & digital industry. This is our responsibility, it is personal and we can make a very real difference here.

But if I were to look for help it would be to a call to action to immediately review the Apprenticeship Levy.

Simply put – it does not work.

Not for tech businesses nor for the young people we want to see come into the sector. Dialogue must improve between government and industry to address the design of the platform and the way in which digital skills are embedded and delivered by the scheme. Let’s not wait for it to fail before we tackle it.

My next point is about data.

A modern economy cannot thrive unless we have an open borderless world when it comes to data.

We know that data must flow freely around the world and that regulation will struggle to keep pace with change.

However, we must find a way to align with the rules of our near markets in Europe on data protection. If we don’t, we risk failing EU data protection adequacy assessments, and finding ourselves cut off from EU markets.

We simply can’t allow this to happen and smart minds must understand the enormity of this data challenge both in priority and consequence.

GDPR, Equivalency, Adequacy and Privacy Shields are all terms the Brexit unit will need to become very familiar with if we are going to remain a world leading connected digital economy.

This is not just a tech issue, it impacts the whole services sector. Failure to secure the free flow of data could the biggest single trade barrier facing the UK economy in a post Brexit world.

This is equal in importance for the UK economy as the financial services passport.

My fourth point is about investment

We need to open the gate to investment, for example in our digital infrastructure.

The UK has always been one of the most competitive markets anywhere for communications services.

To ensure this continues, we must invite international investment if we are to drive fibre deeper into our networks and be an early mover on 5G.

Firstly, in this new environment we need to move fast to remove cost barriers, such as planning rules and way leaves, that are holding back infrastructure deployments in hard to reach areas. Here we strongly support the proposals in the Digital Economy Bill.

Secondly we need to be careful to avoid adding new cost burdens that may now be inappropriate. There are some other aspects of the Digital Economy Bill that may need to be re-considered in that respect.

Thirdly, Ofcom must now think about what it can do to offer confidence and support investment.

My last point is about how we work together
We must be open to collaboration as we forge this new future.

Matthew Hancock recently set out a powerful call to arms for the digital transformation of government. We mustn’t hold back, we must redouble our efforts to deliver this vision and we need it faster than ever before.

But there is also a need for business as Unusual. Together we need to be asking what can we do differently? Where are the opportunities to differentiate? How can we make this country even better than before?

So there is a need for us to think about things we can do at pace. To signal to the world that the UK is open to investment and innovation - determined to maintain its tradition of inventing the future. This is a job for all of us, working together, through techUK.

I believe that culture trumps strategy every time. No matter how good the plan is, if we get the culture wrong we will spoil the opportunity that stands before us.

As a nation, as a thriving tech industry, as a room full of leaders, as people, we have to get better and faster at working together to face these challenges.

We set the tone for our country and our industry. Let’s encourage and invite collaboration, inclusion and partnership

So, to finish

Just over a month ago EY published a survey of tech leaders that said the UK is the place most likely, after California, to give birth to the next tech giant.

These ideas, these aspirations, this ambition must not be lost.

The world needs to know that the UK is one of the best places in the world to locate and grow a technology business. This is a digital nation of significance and we are a nation of entrepreneurs

Let’s remain open.

Open to the single market, open to global talent, open to data led innovation, open to infrastructure investment and open to big bold and ambitious ideas.

Lords, ladies and gentlemen: the UK is indeed open for business.