Partner Article

Budget 2014 reaction: We must support the technology sector

Technology is a fast-growing sector with tremendous potential to contribute to the wider UK economy.

Although a reduction in the corporate tax break has been a positive sign, this year’s Budget hasn’t gone far enough to encourage business investment in tech-based SMEs in the North West.

Despite recovery in the UK economy, small business owners in the tech sector are struggling to maintain the financial resources necessary to capitalise on market opportunities and overcome hurdles created by government regulations.

It’s difficult to develop a strategy for innovation or growth when you’re struggling to navigate red tape or get the information that you need to ensure your business is compliant.

In most cases, North West SMEs with limited funds are being forced to choose between maintaining their existing cash flow and investing in equipment and innovation that will ensure these companies will still be around in five years.

When the economic crisis hit in 2008, companies reduced IT budgets to weather the storm. Now that growth is on the horizon, we’d like to see the government do more to collaborate with SMEs in the technology sector. In addition to contributing to the growth of the UK economy, tech companies create value across the board by driving demand for skilled workers and delivering solutions that can help other SMEs reduce business costs and strain on staff resources.

Manchester is a great place for start-ups, as the environment is very supportive and willing to invest in innovative companies with a good business plan. With Media City just around the corner and great links to the rest of the UK, the digital businesses have great access to connections and opportunities – on both a national and international level.

Ultimately, we’d like to see the UK government and local authorities support the technology sector by leading from the front and openly adopting innovative technologies. Three years ago, we identified an opportunity to save a local council in the North West £500,000 annually on their postal spend at the height of the recession, however, the project still hasn’t moved forward.

By embracing technology solutions that save them both time and money, public sector organisations can free up resources for additional public services, as well as supporting SMEs that are driving growth and innovation in the UK economy.

This was posted in Bdaily's Members' News section by cloudSMART .