The UK tech gap isn’t capital. It’s customers.
Stephen Kelly, Cirata CEO
For years, the UK tech debate has focused on access to capital.
That is no longer the primary issue.
The UK now produces globally competitive technology companies. Many are generating the majority of their revenue overseas, often 70 to 80 percent from the United States, while as little as 2 percent comes from the UK. That should tell us something.
These companies are good enough to win in the most competitive enterprise market in the world. But they are not seeing the same level of adoption at home. This is not a funding problem. It is a customer problem. At the same time, demand in the UK is significant.
Public sector technology spend reached £19.6bn in 2023 to 2024.
1: https://www.ukauthority.com/articles/public-sector-tech-spend-continues-to-rise
Overall IT procurement has grown more than 40 percent in recent years.
2: https://www.tussell.com/insights/public-sector-it-market-2024
So the market is there. What is not working is access to that market on a consistent and predictable basis. Growth in technology businesses is driven by revenue. Revenue comes from customers. If UK companies cannot secure customers in their home market, they will continue to scale elsewhere.
Meanwhile, the United States is not standing still. It continues to invest heavily in infrastructure, AI and enterprise ecosystems. It is becoming the default destination for scaling companies, not just because of capital, but because of customer access. The UK risks falling into a pattern where we build globally competitive companies but do not adopt them domestically.
This is not about protectionism or special treatment. It is about ensuring a level playing field in the home market.
UK companies are already proving they can compete. The question is whether UK procurement systems are set up to recognise that.
