UK ahead of European rivals on digital-tech investment as sector value hits £97bn

The value of the UK’s booming digital sector has leapt by 30% in the last five years, according to new data from Tech City UK.

Published today (March 22), the Tech Nation 2017 report shows that digital-tech now contributes £97bn to the UK economy, with salaries around 44% higher than those in other sectors.

The average advertised salary for a digital-tech job is now £50,663 a year, well above the £35,155 average for a non-digital role.

Since 2012, the advertised salaries of digital-tech posts have risen by 13% in comparison to 4% growth for non-digital.

It is estimated that over 1.6m people are employed in the UK’s digital-tech scene.

Elsewhere, the report has demonstrated how the UK continues to lead the way in Europe when it comes to investing in its digital economy.

In 2016, investors drove £6.8bn into the UK’s digital sector – more than double its closest rival France (£2.4bn) and well ahead of Germany (£1.4bn).

It was also found that opportunities for those with the right digital tech skills exist all over the country, not just in London.

Although the sector’s highest salaries are still seen in the capital, most regional clusters have achieved strong growth in their digital-tech salaries. This is particularly the case in Newcastle, Leeds and Sheffield, where average salaries leapt 25% in five years.

For the first time, more investment from venture capital or private equity funds went to businesses headquartered outside London, with the UK’s regions attracting 68% of the total.

Karen Bradley, Secretary of State for Culture, Media and Sport, said: “This Tech Nation report highlights the fantastic performance of the UK’s digital sectors which are driving growth across the whole country and creating well-paid and highly skilled jobs at twice the rate of other industries.

“Earlier this month Government published the UK Digital Strategy which will help secure the UK’s place as a world-leading digital economy, attracting the best and brightest of global talent and making Britain the best place to start and grow a digital business.”

Gerard Grech, chief exec of Tech City UK, commented: “Tech Nation 2017 shows how rapidly the UK’s tech innovation and productivity are gathering momentum.

“There are now significant tech hubs all over the UK, attracting both international investment and overseas talent. Tech careers now pay 44% more than the national average wage. These foundations will be crucial as we prepare to leave the EU.”

He continued: “We need to maintain access to skilled workers while doubling down on home grown tech talent. And we need to think big. This report is all about working together on a common vision: the UK as a global leader in tech.”

Tech City UK surveyed over 2,700 people who work or invest in the digital-tech community for the report.

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