Industry Leaders Advocate for Stronger UK Government Backing of Software Sector
In a significant move, over 120 industry leaders have rallied to call on the British government to enhance support for the European software industry. This push for government intervention includes suggested measures such as tax incentives and specialized talent visas to bolster the sector’s growth and competitiveness.
Europe’s challenge in nurturing tech companies to scale on par with their US counterparts has been a persistent issue. Many European startups find themselves looking overseas for investment opportunities as they grow. A stark illustration of this challenge is evident in a recent study cited by Boardwave, an industry body, which found that only one software-focused company, Sage (SGE.L), is listed among Britain’s top 100 publicly-traded companies. This contrasts sharply with the numerous software firms that populate the US market.
Boardwave founder Phill Robinson, who has previously held executive roles at software behemoth Salesforce, has taken the initiative to share these concerns with Britain’s technology minister Michele Donelan. Robinson emphasized that mid-sized software firms are often overlooked by government policies that tend to favor larger tech corporations and startups backed by venture capital.
Despite these concerns, a spokesperson from the Department of Science and Technology defended the government’s track record, claiming that the tech sector is thriving and surpassing European rivals. The spokesperson highlighted that billions of pounds have been invested to support high-growth firms and encouraged British investors to support promising scale-ups.
Boardwave, established by Robinson in 2022, boasts a membership of 1,300, including software founders and CEOs from across Europe. Robinson, in an interview, stressed the importance of software in underpinning the future digital economy and expressed concern over its current neglect.
The white paper produced by Boardwave lays out several proposals for future legislation. Among these are the expansion of talent visa schemes to attract international workers and increased tax allowances for research and development. Additionally, the report suggests exploring the idea of a “European NASDAQ” to facilitate a unified stock exchange for the continent.
Elona Mortimer-Zhika, CEO of IRIS Software Group, highlighted the potential for the UK and Europe to lead in the global tech landscape over the next decade. She urged the government to provide more substantial support to companies like hers to foster growth within the region.
The campaign has garnered support from various industry figures, including Rishi Khosla, CEO of Softbank-backed Oaknorth Bank, and Adam Hale, a venture partner at Notion Capital. Following the presentation of the report to British officials, Robinson disclosed that Boardwave is engaging with French and German governments to discuss ways they can support the software industry.
