The UK needs to remove the barriers to further US tech investment, says audit, tax and business advisory firm, Blick Rothenberg.
Simon Gleeson, Head of US Desk at the firm, said: “Reflecting on July 4th the UK & US continue to have an unparalleled level of cooperation across many areas, with the US accounting for 42% of total funding in the UK in 2024, but there are still barriers stifling further American tech investment.”
He added: “The recent UK US trade agreement creates a good foundation to address the issues holding back further US & UK tech cooperation. The UK’s Digital Services Tax, for the sake of 2%, has frustrated large US companies who have invested heavily in the UK’s tech eco-system. Removing or reducing this tax would encourage increased US tech investment, creating a financial boost for British businesses.”
Simon said: “This tax on revenues from some of the largest US investors in the UK across search engines, social media and online market-places is projected to bring in +£800m in revenues for HMRC, but this is a relatively small amount compare to the £16.2billion of capital raised in 2024 powering the UK to compete on a global stage.”
He added: “Tech innovation is driving much-needed growth, but both governments need to prioritise policy and a supportive regulatory framework to lead together globally, as questions remain around how the UK & US share data, AI regulation and cyber security.”
Simon said: “Initiatives such as the AI Opportunities Action Plan need to be accelerated if the UK is to continue to attract the same level of overseas investment and required capital to fund building AI infrastructure. This is something increased US tech investment can help with, if the right moves are made to encourage it.”