(Bloomberg) — The UK is planning to update its digital strategy for the first time since 2017, in an attempt to address the “skills deficit” in the tech sector.
Post Brexit, the British government wants to “capitalize on the freedoms we now have to set our own rules and regulations,” said Nadine Dorries, the Secretary of State for Digital, Culture, Media and Sport, at the opening of London Tech Week.
The new strategy, which has yet to be revealed in any detail, comes at a time when tech startups are cutting jobs after facing pressure to focus on profits rather than growth.
Getir, Gorillas, and Klarna, some of the largest European startups with a significant presence in London, are cutting jobs, while UK rapid grocery startup Zapp is also planning cuts of up to 10% of staff.
Despite the recent cuts, venture capital funding into London rose at the start of 2022 to $11.3 billion through the end of May, a rare increase that makes it an outlier among top competitors, which saw their levels drop amid a broader slowdown.
The UK capital ranked as the third-highest city globally for attracting venture financing through the start of this year, according to a report from the capital’s promotional company London & Partners and data provider Dealroom.co.
However, it was the only city in the top four to post an increase this year over first-half 2021, when tech markets surged.
London’s $11.3 billion in venture capital investment this year through May topped the $10.5 billion in the first half of last year.
That figure trailed only the San Francisco Bay Area and New York, according to the report.
Private technology investment is playing an increasingly prominent role in London’s financial sector, while venture capital firms have become an attractive place to work.
Read more: Venture Capital’s Billions Are Taking Over London Finance
(Updates with additional context.)
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