Tech dominance in London, once a point of pride, is now under serious threat. The city, which outpaced both France and Germany to build the most tech unicorns in Europe, is losing ground fast. Alan Mak, the Shadow Secretary of State for Science, Innovation & Technology, lays bare how recent Labour policies risk turning the UK from a global tech powerhouse into a “second or even third-rate” player. And the stakes? Huge.
The British Tech Dream Is Fading, Fast
It’s hard not to feel a pang of frustration reading that Paris has overtaken London in the tech race. The UK’s status as a global leader isn’t just about bragging rights—it means jobs, investments, and a front seat in shaping the future. And yet, under Labour’s watch, things seem to be going backwards.
One glaring example? Labour scrapping the UK’s new national exascale supercomputer project at Edinburgh University, which the Conservatives had funded to the tune of £800 million. This isn’t just some nerdy gadget. Supercomputers crunch massive datasets crucial for everything from discovering new drugs to creating smarter AI systems. Pulling the plug here sends a clear signal: innovation isn’t a priority.
Mak points out that losing this project isn’t a minor slip but a strategic blunder. Without it, Britain risks falling behind rivals who are investing heavily in their AI and computing infrastructures. The bare minimum for staying competitive in tech isn’t an optional expense—it’s essential.
The Paper Tiger of Labour’s AI Plans
Labour has tried to roll out an AI Action Plan, but Mak is quick to call it out as mostly talk and little action. It’s packed with lofty ideals about ethics and regulation, sure, but when it comes to actual funding, accountability, or measurable timelines? Crickets.
Instead, the plan creates two new quangos—bureaucratic bodies that, in Mak’s words, only add red tape and slow down innovation. It’s a classic case of too many cooks spoiling the broth.
Mak argues that what the UK really needs is a UK Innovation Principle. This would force regulators to balance the economic and societal benefits of new tech against risks, instead of defaulting to precautionary bans. It’s a push for common sense, not endless caution.
From Vaccine Factories to Data Fumbles
The damage isn’t just theoretical. Last year, when Labour walked away from a £450 million deal to expand AstraZeneca’s vaccine facility in Merseyside, investors took note. The message was clear: the UK isn’t open for business anymore.
And if that wasn’t enough, the government’s mishandling of the Data Bill is creating chaos. Trying to balance AI growth with protecting copyrighted creative work has been a disaster, with even high-profile figures like Sir Elton John publicly berating the government. Labour’s tech secretary Peter Kyle had to admit regret in Parliament for bungling the issue.
The numbers are telling. Since Labour took office, tech investment in the UK has stalled, and some firms have shifted focus to friendlier markets in Europe.
A Table to Consider: UK vs. France & Germany Tech Investment Trends (2023-2025)
| Year | UK Tech Investment (Billion £) | France Tech Investment (Billion €) | Germany Tech Investment (Billion €) |
|---|---|---|---|
| 2023 | 12.4 | 10.1 | 11.3 |
| 2024 | 11.8 | 12.7 | 13.5 |
| 2025* | 10.9 | 14.3 | 15.0 |
*Projected figures based on first quarter data
Can London Reclaim Its Glory?
London has a long history of bouncing back. The city’s tech ecosystem, brimming with startups, talent, and innovation, was built on ambition and smart government backing. Mak’s argument is clear: without bold, practical policies, that lead will slip away permanently.
There’s a lot at stake—jobs, global prestige, and the ability to influence how new technologies shape our lives. Mak’s message? It’s time for the Conservatives to step up and restore London’s tech crown before it’s too late.
Is it too late? Maybe not. But if the UK keeps sending the wrong signals, the real risk is watching another golden era quietly fade away.
