UK-based Tech Companies

Alison Taylor Excerpts

Wednesday 11th March 2026 Westminster Hall

[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

It is a pleasure to serve under your chairship today, Mr Betts. I thank the hon. Member for Bromley and Biggin Hill (Peter Fortune) for securing such an important debate—a debate that is of significance to my constituency and the role it plays in supporting UK-based tech companies.

In my former career as a chartered surveyor, I worked on a project in the constituency to create an innovation zone around Glasgow international airport, funded in part by the UK Government’s city deal. The Chancellor has now committed to further support with £30 million of direct investment from the UK Government to expand that project. This Labour Government’s commitment to continue to invest directly in such long-term initiatives is most welcome, and it has made a huge impact on the economic and upskilling opportunities for generations of residents in my constituency.

The zone, which includes the Advanced Manufacturing Innovation District Scotland—also known as AMIDS—would not be there without UK Government support, which has helped to fund large infrastructure works including two new bridges, land reclamation, decontamination and active travel routes. All that preparatory construction work paved the way for the iconic anchor building, the National Manufacturing Institute Scotland, to be completed. Its completion has already acted as a catalyst for future investment. It is helping to make tech companies more productive, resilient and sustainable. It also pioneers and harnesses AI to drive smarter, data-led production, turning breakthrough ideas and inventions into high-impact industrial products. The National Manufacturing Institute Scotland is also a leader in the circular economy and in recycling industrial products such as wind turbine blades.

Working in conjunction with academia from across Scotland and the local West College Scotland, that collaboration drives innovation and new technologies. The new innovation zone supports emerging sectors such as photonics, which is important for medical imaging, solar power and high-speed telecoms. Advanced manufacturing in the zone will also support sectors such as net zero shipping, energy-efficient aerospace, the circular economy and green jobs. It is a model for how the Government can drive growth and support innovation in the tech sector.

I will conclude by thanking the Government for undertaking recently to identify barriers to growth, including considering further measures to support access to finance, which is crucial for the emerging tech sector. All those measures are most welcome.

--- Later in debate ---

[Edward Morello (West Dorset) (LD)]

It is an honour to serve under your chairship, Mr Betts. I congratulate the hon. Member for Bromley and Biggin Hill (Peter Fortune) on securing this important debate. I suspect that, at this point, I am in danger of labouring the points already made by other hon. Members, but I will persist. Perhaps it is a sign that we all know what needs to happen. I am sure the Minister will speak to those issues.

The UK tech sector employs more than 1.7 million people and contributes more than £150 billion to the UK economy. Our technology ecosystem has created more than 185 unicorn companies, which are start-up companies valued at more than £1 billion. I suspect that, at the end of this debate, a word cloud would have the word “ecosystem” as the largest word, but there is good reason for that.

Innovation does not happen on its own; it requires the right conditions, such as access to funding, clear regulation, market confidence, skilled workers and a Government who understand the importance of helping companies grow. That is particularly important for small and medium-sized businesses, which form the backbone of the UK economy. In the UK, there were 5.7 million SMEs, including 5.4 million microbusinesses, in 2025. Those companies often develop some of the most exciting ideas, but they also face the greatest challenges when trying to scale up.

One area where the UK has a huge opportunity is climate technology. As the chair of the all-party parliamentary group on ClimateTech, and having spent nearly a decade working in renewable energy finance before entering Parliament, I have seen how much potential this sector has. Between now and 2050, the world will need to remove 165 billion tonnes of carbon dioxide from the atmosphere, with annual removals reaching about 10 billion tonnes a year by the mid-century if we are to limit global warming to between 1.5°C and 2°C. The Intergovernmental Panel on Climate Change has made it clear that without carbon-removal technologies, those goals will not be met.

[Alison Taylor]

The hon. Member mentions a specific sector of the tech economy. Does he agree that tech companies do best when they are clustered together, particularly in innovation zones, so that they can share emerging knowledge and technologies, and link in with academia?

[Edward Morello]

I certainly agree that, if we want to become a market or world leader in a particular technology space, it is vital that we channel funding and support into those areas where we have the most opportunity and a competitive advantage.

Climate technology is not only an environmental priority, but a huge economic opportunity to lead a sector the world will need for decades to come. The UK’s greenhouse gas removal sector alone is now valued at £1.2 billion, with investment increasing by more than 39% in 2024—faster than the technology sector as a whole. According to analysis aligned with the Climate Change Committee’s seventh carbon budget, greenhouse gas removal technologies could support over 60,000 high-quality jobs in the UK by 2050. The Government have already taken some positive steps: funding for carbon capture and storage clusters, investment in innovation programmes, such as direct air capture and bioenergy carbon capture, and plans for new clean tech innovation challenges. Those are all important developments.

However, challenges remain, particularly when companies try to move from early innovation to large-scale deployment. Many climate technology companies face what is often called the valley of death. Early-stage funding can help to get ideas off the ground, but when companies reach pilot or demonstration stage, that funding often disappears. Data shows that although almost all seed-stage companies move forward, only one third successfully progress beyond series B investment. At that point, the technologies often require significant capital investment to scale, which requires the Government to project confidence to the sectors and investors. Without stronger support mechanisms, whether through the National Wealth Fund, the British Business Bank or other targeted policies, many promising technologies risk stalling before they ever reach market.

In other sectors, there is more the Government can do. A fantastic company called Sintela in Dorchester in my constituency develops advanced fibre-optic sensing systems capable of detecting movement and activity across long distances of infrastructure. The technology has applications in security, energy systems and environmental monitoring. Last year, the company secured orders from US Customs and Border Protection worth more than $90 million. That contract has now been expanded to $200 million through to 2028, which represents the largest contract globally for distributed fibre-optic sensing technology.

Small companies like Sintela can struggle to gain the same level of access to Government support and trade opportunities as larger firms. When business delegations travel abroad with Ministers or during state visits, the companies included are often the same large multinational businesses, but SMEs are often where some of the most exciting innovation is happening. If we want to support British tech companies properly, we must also ensure that small and medium-sized firms are included in trade missions, international delegations and export promotion.

The UK needs a clear long-term approach to science and technology. That includes raising research and development spending to 3.5% of GDP, investing in digital infrastructure, supporting local government capacity and ensuring that the benefits of technology are spread around the country. It also means continuing to invest in green technologies, which is essential if we are to tackle the climate crisis, while creating new industries and job opportunities. The UK has many of the ingredients needed for success: world-class universities, strong research institutions and an entrepreneurial technology sector. What we must do now is make sure that the environment is right for those companies to grow.