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What the TECH? a Look at What This Election Could Mean for the Technology Sector Cicero Group | December 2019

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What the TECH? a Look at What This Election Could Mean for the Technology Sector Cicero Group | December 2019 What the TECH? A look at what this election could mean for the technology sector Cicero Group | December 2019 What the TECH was in the manifestos? Technology and innovation were a theme in all of the major manifestos with each Party professing a desire to take the UK into a future technological revolution. Broadband was almost certainly at the top of the policy charts, with all four major Parties promising the roll out of full fibre broadband and increased internet connectivity to all corners of the UK by 2030. Labour has even promised to renationalise BT in order to deliver this. While the ambition and execution of each Party’s broadband policy may differ, it seems all Parties, whether explicitly or tacitly, believe internet access should now be considered a basic utility available to all. For the digital economy, the promise of increased internet access should be a cause for celebration. More people online means more potential users, customers and shoppers to target. As well as enhancing access and speeds, all major Parties want to ensure our online experiences happen in a safe environment, with each committing itself to tackling the scourge of ‘online harms’, particularly for children. The SNP has even gone as far as to promise the introduction of a new ‘online regulator’ to impose fines and block access to offending platforms, something the previous Conservative Government had only begun to consult on. Away from the internet, it’s clear each Party wants the UK to also lead The number the world in innovative research and manufacturing. Here, traditional of times Party ideologies appear to play more of a role. Labour is clear that the adoption of innovation must not come at the expense of the ‘technology’ current workforce, whereas the Conservatives are seemingly keener 89 and ‘innovation’ to embrace the jobs “transformation” created by innovation, with were referenced promises to make the UK a leading force in future industries such as across the Labour, life sciences, clean energy, space, design and robotics. Meanwhile Conservative, Lib the Liberal Democrats are the only Party who talk at length about the importance of ‘tech ethics’. Their plans to introduce a code of ethics Dem and SNP for artificial intelligence and give the Centre for Data Ethics and manifestos. Innovation (CDEI) more ‘teeth’ touches on many of the themes discussed by current sector regulators. While technology and innovation, in the broadest sense, got a warm billing from across the major Parties, the digital services sector may have cause for greater concern. Regardless of which Party gets the keys to No.10 in ciceroelections.com Cicero Group | 1 What the TECH? December, it appears that the tax collectors are coming for the digital platforms and large multinational techs, such as Google, Facebook and Amazon. Given broader international efforts to levy tax upon the online world, this should not come as a surprise. However, it’s important to take note of how aggressively each Party plans to pursue the revenues of the online giants. For example, Labour plans to use their ‘tech tax’ to fund their ambitious spending and renationalisation programme, while the Lib Dems plan to triple the tax rate, proposed by the previous Conservative Government, from 2% to 6%. What the TECH does this all mean? Announcements that caught our eye Regardless of their political ideology, all major Labour: Free superfast broadband for all Parties want to promote the tech sector and by 2030 allow innovation to flourish. Whether you’re an innovative manufacturer, a biotech start- up or a leader in digital services, this should Labour: Charter of Digital Rights be a welcome signal. However, the sector must remain cautious in its approach. While any future Government will want to promote SNP: New Online Regulator the UK tech sector, a degree of scepticism over the merits of tech and the broader benefits of innovation remain rooted within Liberal Democrats: Introduction of the some Parties. For example, it’s clear that the ‘Lovelace’ Code of Ethics for data Labour Party remains concerned about the impact future innovation will have on jobs. The days of championing technology and 13% Conservatives: Increase R&D tax credit innovation for the sake of it are gone and, like rate to 13% (currently 11%) any other sector, it’s incumbent on the techs to prove their importance to each Party’s vision for the UK. Who the TECH: which candidates could be important for the sector? Darren Jones Labour Bristol North West Jones was elected as the MP for Bristol North West in 2017, winning the seat from the Conservative incumbent. Although new to Parliament, Jones was quick to establish himself as a leader in tech through his work with the Parliamentary Commission on Technology Ethics. Through this role, Jones sought to understand how Parliament could better keep pace with innovation and ensure ‘ethics’ remained central in the design of new technologies. If Jones is successful in retaining his seat, you can expect more from him in this area particularly as considerations around the interaction between ‘tech’ and ‘ethics’ continue to develop. Damian Collins Conservative Folkstone and Hythe Collins has been the MP for Folkstone and Hythe since 2010. In this time, he has successfully established himself as a leading interrogator of the tech sector through his role as Chair of the Digital, Culture, Media and Sport (DCMS) Select Committee. The Committee’s 2019 report into ‘fake news’ in the wake of the Facebook / Cambridge Analytica scandal provided a damning assessment of social media and called for the Government to establish a ‘code of ethics’ for big tech. If re-elected as an MP and returned as Chair of the Select Committee, we can expect Collins to continue his keen scrutiny of the tech sector, particularly in light of the criticism aimed at the likes of Facebook and Twitter for the role they have played in facilitating political advertising during this current election. ciceroelections.com Cicero Group | 2 What the TECH? Lee Rowley Conservative North East Derbyshire Rowley has been the MP for North East Derbyshire since 2017. In his short time in Parliament, he has made a significant impact in raising the profile of issues related to technology and innovation. Alongside Darren Jones, Rowley Co-Chairs the Parliamentary Commission on Technology Ethics. He also works alongside Labour MP, Daniel Zeichner who is chair of the All Party Parliamentary Group (APPG) on data analytics, co-chairing the Data and Technology Ethics Inquiry. Rowley has stressed the importance of establishing universal principles in tech ethics, and advocates establishing an “appropriate” framework sooner rather than later. Daniel Zeichner Labour Cambridge Zeichner started his working life in IT as a computer programmer, working for both the public and private sector, and eventually running his own IT business. In Parliament, he has consistently championed tech and innovation. He is the Chair of the APPG on data analytics. Recently, he has highlighted the importance of further research and development in the tech space and said that any future outside of the EU should prioritise the maintenance of standards and participation in innovative EU research. Nicola Horlick Liberal Democrat Chelsea & Fulham Horlick is running in the Conservative held Chelsea and Fulham constituency. The seat is currently held by Greg Hands, former International Trade Minister. Horlick has had a successful career in investment management, starting and directing her own Asset Management fund. She has since founded and led Money&Co, a digital marketplace lending business that focuses on business loans. She is also the Chairman of film finance fund Glentham Capital, which raised its funds on the crowdfunding platform, Seedrs. If elected, she would likely demonstrate an interest in FinTech and digital platforms in Parliament. Flick Drummond Conservative The Meon Valley Drummond was announced as the prospective parliamentary candidate to represent The Meon Valley in November. She replaces the incumbent Conservative MP, George Hollingbery, who held a comfortable 47.4% majority in the seat. Drummond was previously the MP for Portsmouth South from 2015 until 2017 and was considered a rising star of the Party. She established the Cybersecurity APPG, which seeks to address developments in cyber security systems and technologies as they relate to the UK economy. In her time in Parliament, she supported a number of schemes and events related to tech-start-ups and innovation incubators, such as the SETsquared Partnership. If elected to this Conservative safe seat, Drummond would likely pick back up on tech and cyber security issues. ciceroelections.com Cicero Group | 3 What the TECH? The Parties’ announcements: compare and contrast CONSERVATIVES LABOUR LIBERAL DEMOCRATS SCOTTISH NATIONAL PARTY Which areas Broadband, healthcare, skills & Broadband, healthcare, climate Broadband, climate change, skills, Broadband, online protection and are they talent, biotech and life sciences, change, cybersecurity, digital rights ethics, investment. climate change. focused on? climate change and protection. and protection and taxation. Specific policies in detail Press the UK Government to invest in digital connectivity including superfast broadband and 5G technology. Press for Scotland to get its fair share of the £5 billion UK Establish a programme of installing Bring full fibre and gigabit-capable Deliver free full-fibre broadband Government funding to roll out Broadband & hyper-fast, fibre-optic broadband broadband to every home and to all by 2030, establishing British gigabit broadband to the hardest to across the UK – with a particular connectivity business across the UK by 2025. Broadband. reach areas. focus on connecting rural areas. Work with broadband and mobile service providers to make more affordable tariffs and packages more widely available – and call for the UK Government to legislate for a social tariff. Support the growth of new jobs and businesses in the tech sector by allowing companies to claim Increase national R&D spending to R&D tax credits against the cost meet the target of 2.4% of GDP.
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