Plans to pump £400million into the capital’s tech start-up industry will not solve some of the sector’s most pressing concerns, leading figures have warned.
In this week’s Autumn Statement, Philip Hammond announced plans to inject venture capital funding into the British Business Bank.
The Chancellor said that the additional money would be made available in response to concerns that an increasing number of the UK’s burgeoning technology companies are too often being bought up by larger competitors.
But several firms have argued that access to finance is not their only challenge and that something must also be done to address the critical skills shortage and layers of red tape which can frustrate many businesses looking to expand.
Russ Shaw, who founded the industry group Tech London Advocates, said that the plans did not get to the heart of many firms’ concerns.
“They will not be a silver bullet and crucially do not address the tech sector’s number one issue – access to talent,” he told the Evening Standard.
“The Prime Minister must take positive steps to safeguard our tech talent pipeline and allow companies to access workers with the right skills.”