Despite much talk during the preceding 12 months about the pivotal role that technology is expected to play in boosting the UK's ailing economy, there was precious little in today's Budget to add flesh to the bones.
There is to be an increase in infrastructure spending of £3bn per year, starting in 2015/16 and continuing through to 2020, and to be funded by cuts elsewhere. The headline items are road, rail and construction. It is unclear if any extension to the ultrafast broadband rollout is included in these plans.
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There was a move to deduct the first £2,000 off the employer National Insurance bill of every company, which will be welcomed by start-ups and small businesses, but this measure is not specifically targeted at IT. Tax relief was also announced for investments made into start-ups and selected high growth investment funds that support such companies.
Research and development (R&D) tax credits will be increased from 9.1 per cent to 10 per cent for large companies, some of which may boost technology.
The Budget also announced an increased role for the Small Business Research Initiative (SBRI) which aims to allow small businesses to compete more easily for government contracts, with an aim of allocating £200m of contracts in this way by 2015.
"Today's SBRI commitment allows the government to boost innovative businesses without boosting public spending. Whilst longer term, Nesta would like to see a larger percentage of procurement budgets spent through SBRI, it's heading in the right direction," said innovation charity Nesta on its website.
Overall though, these represent slim pickings for IT. There was no specific mention of an extension to the ultrafast broadband programme announced in last year's Budget, nothing on skills and training, the rumoured Wi-Fi rollout on trains never left the station and neither was there to be any more help with patents.
"It's disappointing to hear so little mention of investment in skills when the Chancellor emphasised the need to ensure the UK is competitive in a global marketplace. If we are to truly compete with nations such as China and India, where the level of investment in skills and training is on the rise, we need action now," remarked Mark Wilkinson, managing director of SAS UK & Ireland.
