- House of Lords committee raises economic concerns
- Drop in competitiveness if startups continue to be snapped up by foreign buyers
- Committee wants vision for how technology sector will be supported
The UK is at risk of becoming an ‘incubator economy’ as homegrown AI and tech firms flee overseas, a report has found.
A House of Lords committee said the UK faced weaker economic growth and a drop in global competitiveness if British startups continue to be snapped up by foreign buyers.
Cybersecurity giant Darktrace, one of the UK’s leading tech firms, was last year bought by US private equity outfit Thoma Bravo. Cambridge chipmaker Arm rejected London in favour of New York.
Britain’s most valuable fintech Revolut, which is headquartered in London, is considering listing on America’s tech-focused Nasdaq exchange.
Baroness Stowell, chair of the House of Lords Communications and Digital Committee, said: ‘Too often it’s a case of the UK begins, other countries cash in. That has to change.’
‘Every UK unicorn that gallops overseas to list, or sells out to foreign investors, is a blow to UK PLC and growth,’ she said.
The committee called for an industrial strategy with a coherent vision for how the technology sector will be supported.
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