General election: Channel reacts to the major parties' tech and business pledges
From levelling the playing field with big tech, to stimulating SME growth and developing a UK-specific AI regulatory approach - do any of the major parties' policy proposals go far enough?
As campaigning for the UK general election heats up, all the major parties have now released their manifestos (or, in the case of Reform UK, a document not to be referred to as a manifesto).
As the channel digests the big pledges and overtures to tech, we asked five partner firm leaders what they make of it all. Here's what they had to say.
For a refresher on exactly what each party has pledged to do in technology and business, click here.
AI regulation plans – more similarities than fresh approaches
CRN: Do you think the pledge to regulate the 'handful of companies developing the most powerful AI models' is likely to have any effect on the channel? How do they compare with Lib Dem's 'cross-sectorial framework' and the Conservatives' light touch approach?
Dr Colin Williams, business CTO, Computacenter: "I saw this and thought its more of a virtue signalling statement at present mindful of the concerns about deepfakes and misinformation in the year of UK and global elections.
"To enforce this regulation would be very difficult and involve years of legal battles and I can't see how it will go beyond the EU AI Act, which aims to ensure all actors within and elements of the AI creation and service delivery chain, not simply a handful of large entities are accountable for their actions.
"I think the ramifications of the EU AI act which is here and now, with penalties, is more of a cause for concern for the channel than a party manifesto soundbite."
"The devil is in the detail. The Conservatives had mentioned something similar a while ago and whilst bodies such as the NCSC have delivered decent AI security insight and guidance for a while, I have seen little of the cross-sectoral aspect parties seem to mention.
"This Lib Dem view may be a UK incarnation in a similar form to the EU AI act in the similar way the UK has its own interpretation of NIS2 and Dora. It's hard to comment on this until any party offers detail (how can it be so different from the EU outline, "the exam questions are similar").">
Phil Doye, CEO, boxxe: "AI clearly needs regulation. Governments are sadly generally inept when it comes to regulation particularly in areas they don't really understand like AI.
"AI needs an effective global response which I just cannot see happening quickly enough and so we will end up scrambling after the fact with clumsy and badly thought out legislation that no doubt has lots of unintended consequences.
"Our best hope I think is that the EU comes up with some sensible regulation that we can then adopt. GDPR was probably one area where the EU did get it broadly right."
Alex Tatham, MD, Westcoast:"I am generally disappointed with each party's focus on technology within their manifestos.
"The obligatory statements on AI generally revolve around controlling its worst aspects as opposed to making the UK a powerhouse of innovation as the current Conservative PM trumpeted in Nov 2023, less than a year ago.
"[The Conservatives] are promising to expand the use of AI in the public sector and invest more in the civil service.
"This is similar to the Labour party who are keen to highlight their industrial policy which "will be the best place to start and grow a business" – but then avoid the focus on tech."
Guy Golan, CEO, Performanta: "AI regulation is key. The ethical side of it is a big challenge and a major concern. Restricting the amount of companies working on AI is irrelevant for as long as the relationship between government, regulator, companies and enforcement is happening. But I do have a few pointers:
- I think we lost a big portion in regulation. There are so many companies and individuals today that develop AI. AI development is well ahead of any regulation and accelerates. To stop it, it will be impossible. To shape it may be difficult. To restrict it, may still be done.
- Our government cannot work in isolation to other governments. Imposing a regulation in isolation will be futile
- Governments utilise AI to their own benefit. Including the unethical elements unfortunately
"In conclusion, I think the ambition is there and so as the desire but I don't think they understand well enough the magnitude and the depth of AI to create a proper AI regulation. Starting fast, would he of the essence and evolving as time goes by will be vital.
"The Liberal Democrats' suggestion makes more sense than Labour's pledge. It feels like they learned a bit more about AI and realised that a framework is needed and therefore a regulatory framework will be good.
"The channel will not be impacted in my view in any form. The magnitude and flavour of usage of AI may be determined by law makers but the channel, as channel does, will work with whatever is provided to them."
CRN: The Conservatives pledge £1.5bn in large-scale compute clusters for AI research. What do you make of the viability of this and its effect on the channel's use of AI?
Colin Williams: "A good idea. I am not sure we have been as effective at creating our own "silicon valley" locations outside of the facilities and footprints within some of the UKs great academic establishments.
"The channel will be a recipient of a future pool of skilled employees from such research establishments or aim to take to market innovative emerging tech products that spawn from the innovation developed within.
"This gains a 'thumbs up' from me (even though the number is a drop in the ocean) and another area where I would hope such investment would be shared across the country with an additional consideration within communities that will benefit from the magnetic pull of such AI research facilities."
Guy Golan: "Great initiative. The question is where it will be invested. New AI? Use cases? My view is that the channel needs use cases to create efficiencies and future growth which can boost the economy.
"Proper use of these funds and allowing organisations to produce use cases will have a very positive impact on the channel."
Read on to find out the reactions to pledges around broader tech policies, tax, SME incentives and the skills gap...
General election: Channel reacts to the major parties' tech and business pledges
From levelling the playing field with big tech, to stimulating SME growth and developing a UK-specific AI regulatory approach - do any of the major parties' policy proposals go far enough?
Wider tech and cybersecurity
CRN: The three major parties (Labour, Lib Dem and Conservative) make vague mentions of cybersecurity challenges, but none propose specific policies or legislation. What would you like to see the next government commit to in this regard?
Colin Williams: "This has been noticed, there have been few bold or overt mentions that I can recall (beyond a light touch on deepfake concerns) which is strange when the sheer financial scale and highly public impact of the cyber-attacks on healthcare and other domains (with endless concerns of water and other critical services as pending targets).
"This is a "miss" from my perspective because it is now a notable concern to the broader public who are well aware of the negative implications of data and cyber threats in addition to the inconvenience of services out of action after an attack.
"I would like to see an overt commitment to the fight against ransomware which will lead to increased awareness, help for organisations to obtain and maintain a minimum level of cyber security health in addition to additional law enforcement investment."
Guy Golan: "The reason that these are vague is varied. One reason is lack of understanding. Another reason is the magnitude of the world of cyber. The last one I can think of is sensitivity. Not sure which one relates to which party.
"GCHQ is non political (hopefully) and set the scene and regulation around this matter. They are doing a very good job in that aspect.
"As such, I wouldn't be too worried about that aspect. What I would like to see is an increase of the level of resilience of our infrastructure. Also to see a significant growth in collaboration between the private sector and government around cyber, especially detection, response, risk and resilience."
General election: Channel reacts to the major parties' tech and business pledges
From levelling the playing field with big tech, to stimulating SME growth and developing a UK-specific AI regulatory approach - do any of the major parties' policy proposals go far enough?
Tax and SMEs
CRN: Labour has tabled a proposal to cap corporation tax at 25 per cent and clarify allowances for SMEs? The Liberal Democrats, meanwhile, plan to triple the Digital Services Tax on tech giants. What are the potential impacts for the channel?
Alex Tatham: "Industrial growth will be a key assist to the channel and formation of small businesses will drive investment in technology that will inevitably flow through the channel versus more direct routes.
"There are, of course, mentions of a tripling of the digital services tax on large internet businesses by the Liberal Democrats.
"This policy, aside from required fundraising, is designed to level up some of the power of IT goliaths which may lead to improved conditions for more local competitors which should help the channel.
"The Conservatives go wider with unspecified 'further measures' to address tax-avoiding multinational businesses. Finally, Labour promising to 'cap' corporation tax at the existing 25 per cent feels like a snake oil promise with the current chancellor having raised this rate by 6 per cent up to 25 per cent to pay for the pandemic.
"The channel's key issue at the moment is access to cash – which is more expensive than it has been for a long time.
"This is reducing projects at end-users, curtailing credit capacity and making everything more expensive.
"The most important driver for channel business will be a reduction in interest rates which will come with sustained reduction in inflation, less government borrowing and most importantly of all – a resolution of the appalling conflicts in Gaza and Ukraine."
Phil Doye: "I am sceptical of government efforts but would support anything that makes for a more business friendly environment that incentives for wealth creation."
"Lib Dem's proposal is purely hypothetical looking at the polls, but excessive taxes seem to me a counter productive approach."
Colin Williams: " Haven't really got a view on Labour's tax policy, but the point of anything that offers help to SMEs is a good thing.
"With 70 per cent of UK orgs deemed to be SMEs, any savings from government kick backs or reduction of tax, can be poured back into business investment and employing people."
General election: Channel reacts to the major parties' tech and business pledges
From levelling the playing field with big tech, to stimulating SME growth and developing a UK-specific AI regulatory approach - do any of the major parties' policy proposals go far enough?
Immigration and the skills gap
CRN: The Conservatives propose the Advanced British Standard and increased maths education to 18. How effective do you think these measures would be in addressing the skills gap?
Colin Williams: "This has been around for a while. I am torn on this one because whilst I totally believe an agreed acceptable level of numeracy and literacy is fundamental and beneficial, I am not sure holding someone in academia until 18 is the right duration if it's simply not for them.
"With modern teaching approaches, tools and systems, there must be a way to accelerate absorption using different methods to reduce the duration (akin to different learning styles across a cohort).
"Also, surely, there should be increased focus on additional soft skills such as communication, rapport building, teamwork and others that seem to be lacking in recent generations who were groomed in the "digital era.
"Such skills will unlock the adaptability and flexibility required to really address the skills gap."
Phil Doye: "This is a sensible proposal and perhaps it would have a positive impact."
CRN: Reform is notably sparce on information when it comes to tech. But the party does plan to freeze non-essential immigration and introduce an Employer Immigration Tax. How could these policies affect the UK's tech sector, particularly in terms of talent acquisition and addressing the skills gap?
Colin Williams: "I will try not to get political but this is simply a party with policies only to energise a populist vote. This will have a minimal impact on illegal immigration but will limit our ability to access the best talent. Immigration should be managed, this isn't "essential or no one". A draconian policy in my opinion."
Phil Doye: "I am not sure Reform has much detail on anything. Other parties idea that we are somehow going to retrain thousands of UK residents to meet the skills gap is ludicrously naïve in my opinion."
"We will continue to need skilled immigration if we are to remain competitive on the global stage although we cannot continue with immigration at the level it currently is at."
Guy Golan: " This is a shot to the industry's head. Talent is global. It crosses boundaries. It is already shown that we serve UK clients from all over the world. This is mainly because of major staff shortage on a global scale and the UK is no different.
"Moreso, if that is the case, I'll continue using resources outside of the UK to serve my clients. Companies that don't have a global footprint will potentially engage with other global outsourcing companies.
"In short, bad idea that is leading us literally in the wrong direction!"