The UK government says they back British tech, but won’t put their money where their mouth is
Buying British isn't shallow jingoism, it’s how you build an economy with the resilience and self-sufficiency to weather future crises, writes Alex Stephany
Britain is world-class at founding tech companies, but second-best at keeping them. The UK Government insists that it supports British tech, making sweeping promises to fund exciting startups and become an AI superpower. But when it comes time to use homegrown tech, it fails to practice what it preaches. Awarding massive contracts to US tech giants is par for the course. Meanwhile, a tech ecosystem that is by almost every metric the world’s third most vibrant globally, with some of the world’s leading AI researchers and companies, is typically overlooked. This is a huge opportunity missed for the UK.
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£1.9 billion of taxpayer money was spent on Microsoft in the last financial year alone - just shy of £70 for every single UK household. Even the NHS, cash-strapped and troubled but cherished by me and so many others, seems in thrall to US tech. AI company Palantir was awarded a £330 million contract. With the NHS data moving across to their complex platform, the bill to you, your kids and grandkids may run into many billions. Rumours are also afoot that all the medical scribing across the NHS will go to Microsoft, despite some highly capable British companies in the sector. Often the rhetoric from politicians is sincere - many at the top, including the Prime Minister, do want to back British tech. But the incentives are not in place for the Civil Service, for whom UK tech can be a last resort.
Last week, Palantir’s CEO and Co-Founder, Alex Karp, made headlines with claims that AI technology will disenfranchise women while increasing the power of working-class men. But beyond changing political landscapes, Karp also made it clear that AI is a sovereignty war. Technology will “disrupt every aspect of our society”, he stated. “These technologies are dangerous societally. The only justification you could possibly have would be that if we don’t do it, our adversaries will do it. And we will be subject to their rule of law.”
Karp has got one thing right. AI sovereignty and technological independence are more important than ever in today’s fractured geopolitical landscape. Most of us would agree that the future is more uncertain than ever. The Atlantic alliance can’t be taken for granted. NATO might not exist in ten years. Meanwhile, the UK government is deepening its dependence on US tech. If only the UK would look to its own tech ecosystem, third globally after the US and China. That’s a strategy that benefits every Brit. First, it drives Britain’s economic prosperity by creating skilled jobs. Second, it strengthens our security to have internal capabilities. Third, it gives our public servants technologies tailored to our needs and built with our values.
To understand the benefits of technology sovereignty, we only need to look at current conversations around energy independence. It takes one shock - like a war or a market collapse - to leave governments scrambling for alternatives closer to home. Buying British isn't shallow jingoism. It’s how you build an economy with the resilience and self-sufficiency to weather future crises.
Of course, it’s a complex picture. Councils get a bad reputation, but I’ve seen incredible innovation and support for British tech in spades from local authorities from the Isle of Wight to the Orkneys. But when it comes to selling tech to the public sector, I have seen more enthusiasm for buying British tech from governments around the world than from our own. It's time for Downing Street and Whitehall to adopt a ‘Buy British’ approach, just as the EU and many states are prioritising their own companies.
Every government contract that goes to a foreign company is a contract that doesn’t fund a British one. A contract that doesn’t create British jobs, doesn’t generate the same tax revenues, and doesn’t produce a British success story, capable of growing overseas. We can fund these companies, but who will be their customers if we aren’t? Throughout Europe, we are seeing major government contracts go to tech companies at home. France backs its domestic LLM unicorn, Mistral. Germany backs its domestic AI Defence unicorn, Helsing. Britain backs listed US tech.
Rachel Reeves insists that Britain must bet on British tech, but for the Civil Service, buying British is a last resort. The Government must now act decisively. Britain has to put its money where its mouth is. Downing Street can show it takes startups more seriously than speech fodder and photo opportunities with real support in the form of investment. Karp was not being theatrical about Palantir’s plans. They are prioritising influence, sovereignty, and long-term power for America. The question is, is the UK paying attention, or just the invoice?
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Alex Stephany is the CEO and Founder of Beam.
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