UK tech sector now accounts for nine per cent of UK workforce, study reveals

The UK tech sector now accounts for nine per cent of the UK’s total workforce, the latest statistics have revealed.

The report comes ahead of the launch of the “first-ever” Treasury Connect conference in East London, bringing together CEOs of the UK’s biggest tech firms and investors.

According to the research, the coronavirus pandemic has done little to stem the growth of the UK’s thriving tech sector.

The latest statistics show that the industry has moved from strength to strength, now employing nearly one in 10 (nine per cent) UK workers and more than one fifth of people in cities.

The sector also recorded “record-breaking” investment last year after £11.2 billion was invested in UK tech companies.

Hosting the conference, Chancellor of the Exchequer Rishi Sunak will also reveal that the taxpayer now has a stake in more than 150 high-growth tech firms following the introduction of the landmark Future Fund scheme.

The initiative helped start-ups and innovative firms to secure funding from third party investors who had to at least match Government funding. More than 1,200 firms were supported with £1 billion worth of investment in the form of convertible loans.

These loans automatically convert to equity if the loan cannot be repaid.

Commenting on the success of the scheme, Catherine Lewis La Torre, CEO of the British Business Bank, said: “The Future Fund helped keep investment flowing to high-growth UK businesses during the pandemic. Designed to create a bridge to an innovative company’s next funding round, over £1 billion of convertible loans were issued to more than 1,000 firms.

“Over 150 companies have already seen this funding convert to equity as they have gone on to successfully raise further private sector capital.”

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Posted in Blog, Business News.