As the pledges of politicians in the amateur theatre season that is Party conferences ring in the electorate’s ears, a Tech City News investigation has made a discovery as ground-breaking as that of penicillin: the Coalition has actually kept some of its promises.
Neither the Tories nor the Lib Dems promised much in terms of tech and innovation in their 2010 manifestos. But, on the whole, the limited pledges made by the two Parties – predominantly focused on cutting tax, regulation, and boosting green technologies – have been carried out.
Of course, merely keeping promises hasn’t necessarily paved the way for Tech Britain’s world domination.
Money, Money, Money
Much of the innovation agenda outlined by the Tories and Lib Dems centred on tax cuts or financial incentives.
The Dyson Review, commissioned by the Conservatives in the run-up to the election, led to a pledge to improve and refocus R&D tax credits “on tech companies, small business and new startups”.
Tax cuts
- Improve and refocus R&D tax credits
- Cutting National Insurance contributions
- Cutting corporation tax
Yet the support introduced in both 2010 and 2012 has been criticised as “massively under-utilised” due to widespread misconceptions about eligibility amongst companies.
I’m the Taxman
One of the loudest noises made by the Tories in 2010 was their pledge to stop “Gordon’s jobs tax”. They eventually cut National Insurance contributions, adamant that this would encourage bosses to recruit.
And Osborne has proudly boasted of delivering a promised cut in corporation tax with the aim of having “the most competitive tax system in the G20”.
But the economic reality is less rosy: the IFS argues that this has added “significant additional complexity”.
The result is an expensive and distortionary tax break to a handful of firms, largely for activity that would have occurred in the absence of policy
And the corresponding VAT increase has meant that companies are paying 40% more in tax on their purchases.
Special allowances
Financial support for business has not been limited to tax cuts.
Spending commitments have been met, including the Start-up Loan Scheme and the New Enterprise Allowance.
However, the Allowance – which provides up to £2,000 and mentoring to unemployed individuals seeking to establish a business – has been criticised for being limited to those claiming jobseeker’s allowance, and for the obstacles it poses for women hoping to benefit (especially as unemployed women are three-times as likely as men to set up a business).
And the Lib Dem pledge “to generate new home-grown high tech industries” dependent upon “a vibrant research base and the ability of innovators to exploit the country’s intellectual capital” has suffered as much as its promise to abolish tuition fees, regardless of planned money for science and engineering students.
Snip snip
Cutting much-maligned “red tape” to benefit tech start-ups was another hobby horse racing through the two manifestos.
Both parties promised to reduce the cost of government procurement through the use of technology – an aspiration reached through the creation of G-Cloud.
Lib Dem demands to introduce “sunset clauses” to ensure the necessity of regulatory legislation have been met.
Even Nick Clegg’s pledge to “reduce time-wasting bureaucracy at police stations with better technology” has been carried out, with the consolidation of multiple volumes of guidance into one interactive pdf.
Go Green!
It was on green industries that most of the technology promises were focused in 2010.
Tory hopes of forming “the greenest government ever” included slowly-materialising plans for a national car recharging network and the creation of an “electricity internet” with the Government’s Smart Meter Implementation Programme.
Lib Dem aspirations to extend the electricity internet across the continent through a European Supergrid have been given the thumbs-up by a parliamentary committee, with the potential for creating thousands of jobs.
But action on shared promises to establish a Green Investment Bank for technology start-ups and to promote renewable heat has been met with a lukewarm reception by both consumers and campaigners.
Progress report: must do better
As shown, the number of ticks on a to-do list doesn’t equate to a revolution for Tech Britain.
No more has this been seen than through the Conservatives’ action on its pledge to develop a super-fast broadband network.
Their manifesto aspiration to see 600,000 additional jobs and an £18bn increase to GDP has failed to materialise in a scheme criticised as ineffective and creating a virtual monopoly for BT.
The real issue is a distinct lack of imagination in the Parties’ technology policies.
Polling evidence demonstrates that both the Tories and the Lib Dems must address this neglect if the UK is to lead technological efforts to cut living costs and boost jobs – a task that can be best accomplished in the long-term by technology to prevent and mitigate climate change.
Whether there exists the political will for such imagination remains to be seen.