Government promises support for UK tech scene as London named one of world's best tech hubs

 
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The Prince Of Wales And The Duchess Of Cornwall visit Yoox Net-a-Porter Group offices
London was the second best place for global connections (Source: Getty)

London's position as one of the leading technology hubs in the world was cemented yesterday as a new report ranked it alongside Silicon Valley and China.

The UK was in the top three countries for total capital investment in digital tech companies last year, behind only China and the US, according to the Tech Nation annual report.

Speaking at the launch of the report, culture secretary Matt Hancock said the government was “firmly committed” to supporting the sector as “we want the UK to be the location of choice for tech innovation and investment - so we can build our world-leading digital economy”.

London is still centre of the action, with digital tech sector turnover at £64.1bn in the capital versus £528m on average for the rest of the UK.

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Entrepreneurs with a global outlook are also flocking to the city, as London was named one of the most globally connected places on earth to run a tech business.

Some 25 per cent of entrepreneurs all over the world reported having at least two major contacts in London, making it only second to Silicon Valley.

Will Shu, co-founder and chief executive of Deliveroo said this had been vital to the company's success.

“Having contacts across the world has helped Deliveroo’s growth go from strength to strength, expanding to 12 markets since 2015 in Europe, Australia and the Middle East,” he said.

London is also teeming with new ideas, producing more than three times as many new businesses as the average for the rest of the UK.

But new hubs are emerging elsewhere in the UK, with the report highlighting “clusters” of innovation such as the “power path” from London down to Southampton and Portsmouth. Meanwhile Bristol was revealed to be the most productive local tech ecosystem, producing £320,000 per employee.

Writing in the report, Prime Minister Theresa May said that the tech sector “makes an essential contribution to local economies in our towns and cities”.

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