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Technology sector is growing twice as fast as UK economy - PC Retail

Technology sector is growing twice as fast as UK economy

The UK tech industry is growing faster than the overall economy
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The UK’s technology sector is leading the way in terms of economic growth. Hailed as a ‘great British success story’ by prime minister Theresa May, the industry is growing faster than the UK economy with 72 per cent of investment coming from outside London.

A report by Tech Nation revealed that £9.2 billion of capital and private equity investment in digital businesses came from outside the capital. Growing at twice the rate of the wider economy, the digital economy is now contributes a staggering £97 billion a year to the UK. UP 30 per cent in five years, the UK tech sector is also outperforming all of its European neighbours. 

"The number of digital tech jobs across the UK has grown at more than twice the rate of non-digital tech sectors," said May. "From analysts to web developers to software architects, these pioneers of our digital economy are at the forefront of a great British success story." 

She added: "We will expand the scope of our digital tech industries, funding artificial intelligence, robotics, 5G, smart energy and more."

The report – which surveyed 2,700 workers and investors – also revealed that different regions specialise in different fields. For example, Belfast excels in cyber security, Edinburgh leads the way in data analytics, and London and Cambridge in artificial intelligence. While London has the highest concentration of ‘high growth’ tech companies, Bournemouth, Poole and Newcastle are also major ‘tech cities’.

With one in 10 UK tech companies receiving investment from outside the country, many industry experts are concerned that Brexit will put the breaks on the sector’s growth. However, high salaries in the industry may be its saving grace, with Gerard Grech, chief executive Tech City UK, claiming the industry will continue to grow despite exiting the EU.

"The average salary in the digital industries is 44pc higher than the national average," he said. "That's very good to know for school leavers and university graduates looking for a good career. This is obviously a good destination for them." 

On average tech workers are paid £50,663 a year. 

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