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By opening up this infrastructure for commercial use as far as possible we will extend coverage across the UK, including improving commercial coverage on roads. We have to encourage the market towards ubiquitous ultrafast services but balance the additional benefits of increasing speed against the costs today of providing the infrastructure.

Government has an important role to play to accelerate and de-risk the deployment of the next generation of digital infrastructure - setting the structures; supporting experimentation and testing; helping to reduce the costs; and above all for leadership and setting ambition. There are existing networks that are capable of delivering ultrafast speeds at least Mbps. Trials have demonstrated that G. Cable primarily provided by Virgin Media is capable of delivering at least Mbps now, and there are plans to increase that speed.

And the next iterations of each - XG. Whilst there are a number of interim technologies giving connectivity at ever faster speeds, we believe that the future of high-speed and high-quality connectivity lies in deeper, more extensive fibre networks. This new fund will catalyse the market for alternative full fibre providers by ensuring that they can access the finance they need to help scale the UK market for full fibre broadband.

We are also making further public funding available for the roll-out of full fibre broadband networks in partnership with local authorities across the UK. In December we published a Call for Evidence to ask stakeholders to consider and provide information on a series of options to support this deployment. The Call for Evidence has now closed, and further detail on next steps will be published at the Spring Budget Public owned or funded networks , such as the Janet academic and research network, and Network Rail, offer another potential route to increase fibre connectivity.

This could help reduce the cost of fibre roll-out and consequently increase business and residential connectivity in hard to reach areas. It is expected to represent a significant upgrade: This should present huge opportunities to boost productivity and grow the economy.

In addition to giving consumers and business users high quality connectivity, it will also support the development of the Internet of Things: New fibre infrastructure will play a crucial role in the future deployment of 5G, which is likely to require extensive use of small cells essentially mini base stations , connected to the core network by backhaul usually a fibre connection.

We want the UK to take a leading role in the development and roll-out of 5G. If the UK is going to be at the forefront of the 5G revolution it will require concerted action from government, industry, academia and local areas both to develop the technology and deploy the networks to support it. We are developing a 5G Strategy, to be published at Spring Budget , which will set out our vision for the next generation of mobile connectivity, and the steps we will take to realise that vision.

Better use of radio spectrum will also facilitate further investment and innovation in 5G technologies. We will deliver on our commitment to free up MHz of public sector spectrum in bands below 10 GHz by , having already made over half MHz available to use since This includes continuing the approach set out in the Spectrum Strategy of charging government departments a market-based fee for their spectrum use, encouraging spectrum sharing and wherever possible making suitable spectrum available for advanced communications technologies such as 5G.

For the UK to be a world-leading digital economy that works for everyone, it is crucial that everyone has the digital skills they need to fully participate in society. Although we live in an increasingly online world, a significant part of the population remains digitally excluded.

One in 10 adults has never used the internet 14 and many more are missing out on the opportunities the digital world offers, whether through lack of connectivity, digital skills or motivation. We must continue to address this digital divide between those who have been able to embrace the digital world and those who have not. We also need to turn our attention to those who have basic digital skills and connectivity, but lack the confidence and knowledge to make the most of the digital economy, whether at work or beyond.

And as the digital economy grows, there will be even greater demand for people with specialist digital skills. At present, the UK has a supply of specialist skills that scores well above the EU average 16 , but to keep ahead we will have to keep improving. As we leave the European Union, it will be even more important to ensure that we continue to develop our home-grown talent, up-skill our workforce and develop the specialist digital skills needed to maintain our world leading digital sector.

We must also enable people in every part of society - irrespective of age, gender, physical ability, ethnicity, health conditions, or socio-economic status - to access the opportunities of the internet.

And if we manage it, it will benefit society too. Our approach to delivering these objectives focuses on three strands:. More than ever before, services, including public services and business transactions, are moving online. We want everyone to be able to use these digital services so they can reap the financial, health and social benefits they offer. For those lacking basic digital capability, the reasons for this exclusion are often complex. Research suggests that there are four key barriers, and more than one may affect individuals at any one time:.

Government is already working with industry and the voluntary sector, to increase the digital capability of those who are digitally excluded, as well as those who are online but lacking the confidence and knowledge to make the most of it. And government will continue to work with partners to ensure that small businesses and charities have the skills they need to make the most of the digital economy.

But we need to do more to make sure we build a country that works for everyone and where no-one is left behind. Far too often there is a correlation between where people live, their socio-economic circumstances and whether they have basic digital capability. To close this divide we must take a more targeted approach to digital inclusion.

As a first step, we will:. Throughout this we will regularly assess our targets and metrics to make sure they are fit for purpose and accurately measure discrepancies in digital capability between different demographic groups. This will ensure we are enabling all groups to overcome barriers to full digital inclusion. Libraries have an important role to play in making sure everyone, in every part of the country, makes the most of the digital economy. Libraries tackle the barrier of access by providing a trusted network of accessible locations with free Wi-Fi, computers, and other technology.

Over half of UK residents have a library card and With over 14, trained library staff, supported by volunteers, libraries also make significant inroads towards tackling the combined barriers of skills, confidence and motivation by offering skills training; helping people to understand the benefits that using the internet and accessing online services can bring; and increasing their confidence of the digital world by guiding them on their journey to become regular users of the internet.

In , , people were supported by almost half a million digital skills sessions across the library network. Libraries are also increasingly helping people develop higher level digital skills. Several libraries across the country host makerspaces and FabLabs — places where people can learn new skills, and collaborate on projects. Makerspaces also are democratising access to the latest technology, making high-tech equipment like 3D printers and laser cutters available to everyone.

We will bring together people from across sectors to collaborate and support the expansion of makerspaces in public libraries in England. Individuals, businesses, government and other organisations must take steps now to ensure that we have the skilled and capable workforce needed in an increasingly digital world. As our modern industrial strategy sets out, a lack of digital skills is not only a barrier to people fulfilling their potential, but also a barrier to a more productive economy. We are already making progress to ensure that the next generation have the digital skills they need for work.

In , England was the first country in the world to mandate teaching coding to children at primary and secondary schools. For the computing curriculum to be successful teachers need to be well-equipped and supported to deliver it. That is why we have provided funding for the Computing at School Network of Teaching Excellence in Computer Science , whose network of over Master Teachers can provide continuing professional development to teachers needing to further develop their computing expertise.

Outside the formal curriculum there has been a number of new innovative initiatives providing young people with opportunities to develop their digital skills. The National Citizen Service NCS helps 16 and 17 year olds to build skills for work life, take on new challenges and make new friends. The Government is committed to the expansion of the NCS so it becomes a rite of passage for all young people.

In , NCS reached 93, young people and with a high rate of engagement from young people that most need support, NCS is uniquely placed to help young people to engage with the digital economy. This could include hands-on coding experience, digital making, digital entrepreneurship and contact with creative technology-focused businesses to inspire participants to consider a career in the sector. Our Industrial Strategy green paper set out our plans to create a proper system of technical education to benefit the half of young people who do not go to university and to provide new, better options for those already in the workforce.

The reforms will create 15 prestigious technical routes, as set out in the Skills Plan, encompassing both college-based and employment-based learning and providing a clear path to skilled employment. Relevant digital skills will also be included in all of these routes , meaning that everyone joining the workforce will have the digital skills required whatever job they choose.

The government will work with the Institute for Apprenticeships and Technical Education and industry professionals to determine what digital content will be included in the new technical education routes.

The rapid pace of technological change means digital techniques and technologies are also constantly evolving. The pace of technological change makes it difficult to predict the nature of digital skills that will be needed in future. Requirements will change quickly so we will need to up-skill people across their working lives. It is therefore essential for people to continue to develop their digital skills after they have left formal education.

We will ensure that adults who lack core digital skills can access specified basic digital skills training free of charge, where it is made available by providers as part of the publicly-funded adult education offer. This will mirror the approach taken for adult literacy and numeracy training. Through this we will ensure everyone has access to the support they need to realise the benefits of the digital world.

We will consult on the detail of this offer shortly. To develop and maintain our position as a leading global digital economy, we will also need to develop a range of specialist digital skills to fill specific digital jobs. At present, the UK has a supply of specialist skills that scores well above the EU average, but there are still significant improvements that must be made.

To tackle this and the other specialist skills challenges, we are taking action across further, higher, and employment based education. Our reform of the technical education system will see the creation of a specialist digital route , with employers setting standards and specifying the knowledge, skills and behaviours that individuals will need.

We have already seen employers collaborating with government in the development of digital apprenticeship standards , with 13 standards having already been approved for delivery and more still in development. We have also introduced new innovative digital degree apprenticeships. These include a degree which is an integral part of the apprenticeship and are designed by groups of employers to make sure apprentices achieve full occupational competence. They will provide the much needed skills that industry needs.

The Degree Apprentices earn a wage while doing a job in their chosen profession. The college will train 5, students over the next five years for a wide range of digital careers, such as software and database developers, user experience designers and tech entrepreneurs. We will fund Ada to develop a primarily online learning platform by summer , which will pilot innovative techniques, gamified content and peer-to-peer elements to develop coding skills.

This will open up software engineering careers to students who want to experience working for a tech company, while at the same time studying towards a foundation degree in Computer Science. This funding will be released through a competition run by HEFCE, inviting consortia from universities and business to set up an independent institute which will champion innovative ways to increase digital skill provision in higher education. Women are underrepresented in both the uptake of digital qualifications and in digital roles.

Yet women make up almost half of the workforce. There are already a number of programmes doing valuable and innovative work to help more women into tech.

We will build on these by supporting further development of the Tech Talent Charter. The Charter outlines key measures that encourage organisations to think differently in support of a more diverse tech workforce.

It will provide an impetus for change across the sector by providing organisations with tangible actions and principles they can adopt and embed into their organisations as outlined in the Charter for example adopting best practice guidelines for job descriptions. Alongside this work, we will ensure there is also relevant targeted support for other underrepresented groups, such as people with disabilities and those from minority background or lower socio-economic areas.

This is not only the right thing to do, but it will play an important role in meeting our digital skills shortages. Despite our world leading cyber security expertise, we also have a cyber security skills shortage. We need to address the systemic issues at the heart of this shortage.

In order to understand these issues and identify the actions needed to address them, we are developing a Cyber Security Skills Strategy , with input from industry and academia, to build on existing work and ensure that the UK has the required skills to keep the economy secure from cyber threats. Alongside development of the strategy, we are undertaking immediate work to address some of the known issues, including:.

Government is by no means the only provider of digital skills training, and nor should it be. Employers and companies - national and local - all have a role to play in developing the digital skills and businesses need to thrive in the digital economy.

Many companies are already doing innovative work on addressing the digital skills challenge some of which have already been mentioned. This is very welcome.

These are just some of the many current initiatives:. Microsoft recently launched a programme to train 30, public servants in a range of digital skills and alongside this launched a Cloud Skills Initiative to train , people in advanced cloud technology skills by and announced plans to make free online digital literacy training available to everyone in the UK.

Google recently offered five hours of free digital skills training to anyone in the UK who is seeking to develop their digital skills. Start is a free training and job placement programme for the UK to educate young adults as well as military veterans, reservists, and their spouses, on the latest software development and cloud computing technologies. Start also offers work placements to 1, people as part of the programme.

Lloyds also produces two important, large-scale annual reports the Business Digital Index and the Consumer Digital Index , which track the digital capabilities of small businesses and charities, as well as the digital and financial capabilities of adults across the UK. Barclays runs the Digital Eagles programme to help people develop their digital skills and confidence so they are able to fully take advantage of all things digital, including, but not restricted to, digital banking.

BT fund and run the Barefoot Computing Project which provides free cross-curriculum computer science resources and volunteer-led CPD workshops to help primary school teachers with no previous computer science background feel confident in delivering the curriculum. Working in collaboration with BCS, The Chartered Institute for IT, the project has already reached 33, teachers and through them, 1 million primary school children since its launch in September HP currently runs its Digital Schools Awards programme which provides a pathway and resources for schools seeking to do more with digital technology.

In the UK and Republic of Ireland more than schools have already signed up involving over , students. The Accenture Skills to Succeed Academy is an innovative online learning solution designed to help young people build their employability skills and confidence. O2 aims to help 20 million people engage better with technology by through its online safety partnership with the NSPCC; through opening up digital skills, social action and work experience opportunities for young people through its GoThinkBig platform; and through helping customers live smarter and more sustainable through connected devices.

Apple Teacher Program is a free professional learning program designed to support and celebrate education using Apple products for teaching and learning. Apple retail hold regular free workshops for people of all experience levels along with youth programs such as Apple Summer Camp and Apple Field Trip.

Samsung Digital Classrooms offer an engaging and collaborative educational environment for nurturing the talent of the future. In schools classrooms are provided with a suite of Samsung technology as well as teacher training, connectivity and maintenance support.

Samsung Digital Academies provide vocational training and qualifications in technology for young people to open opportunities for employment. Sky Academy Skills Studios provide a half-day interactive experience giving year olds the chance to come behind the scenes at Sky and make their own TV report, linked to topics they are studying at school.

Sky Academy Careers Labs provide a full day careers experience to 16 to year-olds offering the chance to learn about jobs in media, business and technology. All of these initiatives and programmes are hugely welcome. However, the sheer number of programmes and offers can make it difficult for some people to know which training opportunities best suit their needs.

Some programmes focus on basic digital skills for individuals; others focus on digital training for businesses. There can often be several programmes operating in one area - and sometimes none in others. Government has no desire to centrally control these valuable initiatives and activities. But there is an opportunity for government to play an important role in convening and providing coherence to all those active in this area. We will therefore establish a new Digital Skills Partnership, working together with partners who are passionate about closing the digital skills gap.

The Partnership will bring together technology companies, local businesses, local government, charities and other organisations. It will facilitate coordination between the various programmes, including the sharing of knowledge and best practice.

The Partnership will also examine options for improving the coherence of digital skills provision, for example by setting ambitions for increasing the level of certain types of training on offer and agreeing how it can be targeted where it is needed most.

To support the strategy and the aspiration of the Digital Skills Partnership, a number of organisations have committed to being even more ambitious in extending their reach and scale of their programmes:. Lloyds Banking Group as part of its Helping Britain Prosper Plan has pledged to train face to face 2,, individuals, SMEs and charities on digital skills, including internet banking, by Barclays has pledged to expand the number of Digital Eagles, there are currently 16,, with a focus in on cyber skills.

Google has pledged to launch a Summer of Skills programme in coastal towns across the UK. It will develop bespoke training programmes and bring Google experts to coach communities, tourist centres and hospitality businesses across the British coasts.

This will accelerate digitisation and help boost tourism and growth in UK seaside towns. This new initiative is part of a wider digital skills programme from Google that has already trained over , people. BT has also pledged to offer work placements to disadvantaged young people not in education or employment across the UK in , to help improve their tech literacy. Accenture , in recognition that digital skills are key to employability, is partnering with FutureLearn, and has pledged to create a brand new Digital Skills Programme, which maximises effective learning through online collaboration.

Over the coming months, Accenture will work with a number of partners, who collectively have a reach of over , people across the UK, to scale the programme nationally.

This will empower the next generation of digital printing graduates with the skills they need to work in the rapidly changing digital printing space. HP Inc has also pledged to expand its Learning Studios initiative to more schools across the country. This will equip these schools with the latest education technologies with appropriate support to teachers and help improve IT skills, expose students to innovative skills and concepts such as design thinking, three dimensional design, and social entrepreneurship.

It aims to reach new UK users over the next 5 years. Cisco , through its Cyber Badge programme, is pledging to extend its Cyber Detective project by providing cyber security training to children aged through free interactive online courses, and certification following successful completion of tasks related to the training.

In the first instance, Cisco are aiming to reach over a thousand students through this new programme. IBM ran three successful Summer Schools for Primary School Computing events in Warwick, Manchester and London in to help equip teachers to teach the computing curriculum more effectively.

IBM has pledged three more summer schools in The Partnership will also play a crucial role in helping people access digitally-focused jobs at a local level. We will explore how to identify digital vacancies area-by-area, and where possible look to make this data available to local authorities, combined authorities, LEPs and others.

We will encourage and support local partnerships of government and business to make use of this data to tackle digital skills shortages in their area. Actions to address these shortages could include local firms offering more digital apprenticeships, or careers advice and work experience to local schools. It could also include national and international firms making training packages available to local partnerships. By identifying and acting on digital skills shortages at a local level, we will help more people across the country to access the training and information they need to move into highly-skilled, well-paid digital jobs across the economy.

Leeds City Council convened the Leeds Digital Board, a group of digital employers, education and training providers, and the Leeds City Region LEP to work together to promote and grow the sector, and to tackle skills gaps. The first step was to understand the issues. The Leeds-based big data consultancy, Bloom, were commissioned to identify digital employers. They collated data from Companies House, a scrape of company websites, twitter data and existing lists to identify all the businesses in Leeds undertaking digital projects.

Analysis of skills gaps and vacancies was undertaken by Herd, a Leeds firm who run a job board for tech. It sets out measures to develop the future talent pipeline, including graduate schemes, digital apprenticeships, degree apprenticeships, initiatives to encourage more women to pursue careers in tech, and the ambition for a code club in every Leeds school. To achieve this, we must create the right conditions for the digital sectors to continue to thrive and to ensure the benefits are spread throughout the UK.

Although this will be led by the private sector, government has a key role to play in supporting innovation and the commercialisation of ideas, and helping all digital businesses take advantage of opportunities for growth.

The following outlines the steps we are taking to create this environment for digital sectors. We have already created one of the most innovation and entrepreneur-friendly tax systems in the world. The government has delivered highly competitive headline corporation tax rates and introduced a range of initiatives to further support innovative businesses.

Support is also in place to help small, early stage companies raise equity finance through the Seed Enterprise Investment Scheme SEIS , which offers tax reliefs to individual investors who purchase new shares in those companies. It complements the Enterprise Investment Scheme EIS , which offers tax reliefs to investors in high risk and growing companies.

SEIS is intended to recognise the particular difficulties which very early stage companies face in attracting investment, by offering tax relief at a higher rate. Digital businesses need a supply of employees with the right digital skills if they are to flourish. This means developing the skills we need domestically, and Chapter 2 covers how we will develop a strong pipeline of digital skills within the UK. Digital sector companies employ around 80, people from other European Union countries, out of the total 1.

The government has been clear that it wants to continue to attract the brightest and best to study and work in Britain after we leave the EU. We recognise the importance which the technology sector attaches to being able to recruit highly skilled staff from the EU and around the world. As one part of this, we have asked the Migration Advisory Committee to consider whether the Tier 1 Entrepreneur route is appropriate to deliver significant economic benefits for the UK , and will say more about our response to their recommendations soon.

We also recognise that digital businesses are concerned about the future status of their current staff who are EU nationals. An innovation-friendly regulatory environment is crucial to allowing university researchers and digital companies to develop, test and sell their ideas, goods and services. The quality and agility of regulation can often make or break disruptive innovation, which rarely fits neatly into existing regulation. We will work with the independent regulators to ensure that regulation across sectors is open to realising the benefits of new and disruptive digital innovations, while continuing to protect the public.

Companies developing new technology will be able to get a fair hearing from government on any regulatory or competition issues that they feel are impeding their businesses. The Challenger Business Programme has also helped establish an environment in which innovative businesses can thrive, and is another channel for businesses to alert government to regulatory barriers to growth.

We want to undertake more deep dives into emerging sectors, and are keen to hear from industry about new areas the programme could look to explore.

We also want to intensify our efforts on driving through the recommendations from previous Challenger Business reviews. If innovation is to flourish, a dynamic and flexible intellectual property IP regime is also vital. We need to make sure that the IP rules keep up with technological change. We will, for example, conduct research to look at 3D printing technology and how IP rights apply to 3D files and products. We will legislate through the Digital Economy Bill to give designers a new way of giving the public notice of their IP rights with a web address.

Ultimately, businesses rather than the government are best placed to identify what companies need to enhance their competitiveness as a sector. As part of these deals, sectors will be able to identify how companies within a sector and government could take action to increase their prospects of success, and this could include addressing a regulatory issue or deregulating. It is disrupting established processes and changing the ways that consumers interact with financial services.

In doing so, it is radically reducing the cost of accessing financial services and broadening the range of services available. This is allowing those who may previously have struggled to access financial services to do so, and providing consumers with the tools they need to manage their finances well. The government and regulators are taking a significant number of actions to support the UK FinTech industry:.

We have world-class universities and laboratories, whose excellence is one of the key guarantees of our global tech leadership. In , we launched the Alan Turing Institute , a joint venture of leading UK universities to undertake research using advanced mathematics, computer science, algorithms and big data. The Digital Catapult and the Hartree Centre also continue to help researchers and businesses develop technologies and bring them successfully to market.

One project, led by the University of Manchester, will develop robotics technologies capable of operating autonomously and effectively within hazardous environments such as nuclear facilities, while researchers at Imperial College London will look to make major advances in the field of surgical micro-robotics.

The Digital Catapult Centre is a space for technologists, creatives from business and academia to collaborate and develop their new ideas and showcase their products to the UK and the rest of the world. It enables UK digital businesses to innovate at speed, and with less risk, so new products and services can be accelerated to market. As a key part of this, we are taking forward the recommendations of the Nurse Review, and creating UK Research and Innovation UKRI , in order to ensure that the UK continues to support world-leading research and innovation, investing public money in the best possible way.

We are creating an Industrial Strategy Challenge Fund to help the UK capitalise on its strengths in science and innovation.

This new funding stream will enable UKRI to back technologies at all stages, from early research to commercialisation, where the UK has the potential to take an industrial lead. The Industrial Strategy green paper initiated a consultation on the first set of technologies which the Fund could support, which included:.

These are early suggestions for potential challenge areas and there may be more opportunities - for example, in the creative industries. The UK is home to many top academic and research institutions, which act as excellent ecosystems to cultivate the next generation of future founders and employees in the digital sectors.

The government is committed to supporting institutions to have the right structures for students to pursue entrepreneurial activities. There are examples around the world which demonstrate the importance of an educational institution acting as a pipeline for talent. We believe that every computer science student should have the space and support to explore building tech start-ups that will shape their digital employment prospects and to become tech founders. This will include recognising computer science students who are spinning out promising start-ups and linking their companies to funders and other opportunities.

Government can play an important role in helping entrepreneurs and early-stage digital companies turn ideas into viable businesses through interventions such as accelerators, mentoring, and export assistance.

While the UK has a world-leading track record in research and innovation, we have a challenge in translating our leadership in global research into commercial outcomes. While the UK produces a similar number of spin-off companies as US universities, we register far fewer patents.

From the development of medical imaging technologies to biotechnology, the UK has too often pioneered discovery but not realised the commercial benefits. Our Industrial Strategy green paper outlined a number of actions to address this. As part of this we have commissioned independent research on approaches to commercialisation in different institutions, including how they approach licensing intellectual property and taking equity in spin-outs.

The review will examine the entire entrepreneurial journey, focusing on the motivations and opportunities for those embarking on business ventures, from education to business development and growth. From the Internet of Things and connected and autonomous vehicles, to artificial intelligence and virtual reality, the UK already has world-leading businesses developing and using new technologies.

Government can support the growth of these emerging technology sectors through strategic interventions. The following boxes look at two technologies where we are already playing an active role. Connected and autonomous vehicle technologies are set to transform our roads and could offer huge benefits including improved road safety, traffic flow, efficiency and mobility, together with significant opportunities for UK industry. We want to ensure the UK is at the forefront of these developments and we will work with industry and road network managers to understand the changes necessary to make this a reality, including improved connectivity on the road network.

We are keen to ensure that we are acting at speed to put in place the necessary regulatory framework to enable the safe sale and use of this technology, and will be taking forward a rolling programme of reform, engaging with industry and international partners to identify where to focus our efforts.

Our driverless car trials have commenced public demonstrations in Milton Keynes, and projects in Bristol, Greenwich and Coventry will go live soon. We are consolidating this effort to assert a world leadership position in the demonstration and deployment of connected and autonomous vehicle technologies. The Internet of Things enables connected objects and devices containing sensors to share data, information and insights - from industrial machines, infrastructure, buildings and vehicles, to consumer electronics and clothing.

The benefits for industry, the public sector and citizens could be huge. Increasingly, new infrastructure is also smart: Sector deals offer another important channel to support specific industries. They offer an opportunity for important players to join together and address shared challenges and opportunities they face.

We are therefore pleased to support reviews into the following important and rapidly growing sectors, which could inform potential sector deals. Professor Dame Wendy Hall, Regius Professor of Computer Science at the University of Southampton, and Jerome Pesenti, Chief Executive of BenevolentTech, will conduct a review of how industry and government can create the conditions for the artificial intelligence industry to continue to thrive and grow in the UK. The review will consider the core challenges such as skills and access to talent, access to data, and access to finance and investment.

This review will build on the work on machine learning by the Royal Society, and it will complement, but remain separate from, the ongoing work by the British Academy and Royal Society on data ethics and governance, which will also cover ethical issues around AI.

In addition to these reviews, government will consider how it can further support the virtual reality VR and augmented reality AR sectors in the UK, considering how these industries could seize opportunities for growth. The UK is home to a number of innovative firms working in this sector, including Blippar, Improbable. As an international hub for the cultural and creative industries, and with our strengths in research and computer science, the UK is well placed to take advantage of global growth in these sectors.

The Digital Catapult is already helping advance next generation virtual and augmented reality businesses. Earlier this month, it launched Augmentor , an equity free week programme to provide technical and business mentorship to start-ups in this space.

Successful applicants will have access to the Digital Catapult Centre in London as a space to work and collaborate, as well as the state-of-the-art Immersive Lab at the centre. Digital start-ups are a core part of the success of our digital sectors. Central to our ambition for the growth of digital sectors is therefore to make the UK the best country to start and scale a digital business. As with our support of new technologies, we will identify those where government can play an effective role in helping specific sectors to grow.

For example, we will:. Those businesses that successfully establish themselves and begin to grow rapidly face a particular set of challenges. The Minister for Small Businesses will take on an additional role as the Scale-up Champion , working to coordinate support across the UK specifically aimed at these businesses, which are so crucial to our future prosperity.

The government will also work with the ScaleUp Institute and other partners, including Local Enterprise Partnerships and Growth Hubs and their network of strategic partners to build peer-to-peer business networks specifically for fast-growing firms. And we will use data that only government has — such as VAT returns — to help identify fast-growing firms at an early stage.

This will enable the efficient offer of advice and support to catalyse business growth and support scale-up businesses in cooperation with the Behavioural Insights Team and the ScaleUp Institute. Investment in the sector has remained high over the first three quarters of We want to make sure that the UK remains the best place in the world to do business. As well as encouraging home-grown digital companies to start and grow, we need to attract innovative digital companies to come to the UK.

This work will be led by the Department for International Trade, working closely with the National Technology Adviser and our network of embassies around the world. Both here in the UK and overseas, we strongly promote the message that the UK is not only the best place to internationalise, but that we have the clusters that make us the best place in the world to find innovative technology solutions, products and services. The UK Tech sector drew more investment than that of any other European country in , 31 with a number of major investments in UK digital businesses:.

Leading technology investors have chosen to locate in the UK or raised further investment funds, including:. There have been major investments in cloud data centres, which will help UK firms work smarter and faster:.

To boost our impact in emerging digital economies around the world, we are working to establish a network of UK Tech Hubs in five developing countries to work alongside the key existing hub in Israel. Tech Hubs are small, expert teams based inside the UK embassy tasked with driving UK economic growth by partnering British companies with innovative local start-ups. They enable local digital sectors to go global through British businesses, and help provide British businesses with a global competitive edge.

As part of our wider industrial strategy, we are taking a number of other actions which will support the availability of finance to all businesses, including start-ups and scale-ups in the digital sectors. The Industrial Strategy green paper sets out how we will take a more strategic approach to government procurement to drive innovation and value across public and private sector supply chains.

This offers a significant opportunity to support digital sectors, particularly for start-ups and scale-ups. A contract from government can transform the prospects of a small business, giving it credibility, income and the crucial first customer.

We will continue to procure through the Digital Marketplace - the platform that is helping the public sector buy what it needs to deliver great digital services. Moving forward we will promote the use of the Digital Marketplace by local government and wider public sector bodies, to improve efficiency of procurement and lower barriers for digital and technology suppliers.

The Small Business Research Initiative SBRI , which connects public sector challenges with innovative ideas from industry through funding competitions, will continue to be a key route for this.

Since its introduction in , the SBRI has already had a number of notable successes in bringing innovative solutions from digital SMEs into government. Government will work with Tech City and other partners across the country to ensure the learning and best practice from these programmes are shared and reapplied to develop the tech ecosystem across the UK. Tech City UK, launched in , has grown from supporting the East London tech cluster to accelerating the digital sectors across all regions of the UK through a number of different programmes:.

Tech City UK will be a crucial partner in delivering our ambition to grow the tech sector right across the country. The UK is a world leader for social tech. Programmes such as Bethnal Green Ventures in London and Dotforge Impact in Manchester are the first of their kind in the world and have now supported over a hundred new social tech businesses.

Some people in the UK struggle to access and engage with the financial system. This can make it difficult for them to manage their finances, access the best value goods and services, absorb financial shocks and plan and provide for the future.

Digital solutions can play an important role in helping with some of these issues. For example, the government has supported a pilot of Affordable Loans, an online portal that makes it easier for consumers to access loans from responsible lenders. In order to support digital innovation that helps people better manage their money, we will launch a competition to encourage the development of digital approaches to support financial inclusion. This will be run by Tech City UK, as part of its wider role on FinTech, with external support from both charitable and financial service providers.

Outside of financial inclusion, the Council for Science and Technology will undertake a number of studies considering the opportunities for society from emerging technologies, including how technology can help extend healthy and independent living for ageing populations. Digital technology also offers opportunities to engage citizens in social action in new ways, from providing platforms to facilitating mass movements.

We have provided support for tools and platforms that make it easier to find opportunities to volunteer and give, such as Do-it and Localgiving. We will continue to look for ways that digital technology can promote and support social action, providing government support where it can make a difference.

Many of the developments in digital technology and innovation are transforming our public services as well as the experiences we all have as users of those services. Some examples of these are set out in the sixth chapter of this strategy.

The benefits of these developments are not just for the end users, but for the economic prospects of the sector creating them. Across England, National Health Service clinicians are working to improve patient outcomes through innovation, with initiatives such as:. We will facilitate improved access to the health and care services for the right products through:.

The NHS produces a wealth of data with huge potential to improve decision making, clinical pathways and efficiencies. Access to this will be improved for both patients and professionals, whilst ensuring security and privacy:.

This work programme will have the dual benefit of helping innovators in the digital health sector, by clarifying and accelerating the access pathway and evidence requirements for digital health products through the AAR and app assessment process.

The benefits of digital are not limited to the digital sectors: A recent survey of 1, UK-based businesses found digital capabilities helped boost revenues by 4. While UK companies have similar levels of internet access and web presence as those in other European countries, they are less likely to digitise their back-office functions than their peers in other countries.

From marginal changes like a restaurant adopting online bookings, to wholesale business transformation, our ambition is for all UK companies to be able to realise the efficiency gains offered by adopting digital ways of working. Each business has its own specific digital needs, but there are four core digital activities that we believe most businesses need to do to remain competitive:.

Many businesses are still a long way off adopting these digital processes as a core part of their operations and, as the chart below shows, we are lagging behind our competitors. These echo the findings of a SME self-assessment survey 62 on the barriers they face in adopting digital technologies, shown in the chart below. It will be established to drive engagement with business and improve productivity across the economy, including through appropriate use of digital technologies.

There are a range of tools and training programmes that are already available to businesses to help understand and deliver the efficiencies offered by adopting digital ways of working, and a number of these are outlined in the box below.

If businesses are unaware of the support that is on offer to them or do not know how to take advantage of it, then government can help. Initiatives such as the Digital Skills Partnership described in Chapter 2 , and the Productivity Council described above have been designed to make the process of finding the right support as simple as possible. The Industrial Strategy green paper set out how we will support the development of business-to-business ratings and feedback platforms.

This could make it easier for SMEs to determine the quality of business advice and support services provided to them by other firms. There is already a range of free support available to businesses across different sectors, and of different sizes to help them become more digital and improve their access to skills. Below is a non-exhaustive list of the types of initiative currently available to demonstrate the breadth of support available and organisations providing support.

The Google Garage initiative has delivered training in 80 towns across the UK to over , businesses and individuals. Throughout , the programme will offer face-to-face training in cities and towns across the UK as well as free online courses, providing face-to-face training and mentoring in digital skills for all local businesses.

Google has pledged to provide five hours of digital training to every person and every small business in the UK. It has also opened up five Regional Skills Academies in partnership with Risual a IT services company and a select group of colleges.

The colleges will provide industry relevant IT apprenticeships and youth employment as well as provide access to Microsoft certified qualifications. Colleges are already open in Derby and Wales. Digital Business Academy is a free online platform created by Tech City UK to provide the skills needed to start, grow or join a digital business.

There are over 14, active learners. Do it Digital is an independent, not-for-profit campaign that looks to highlight resources around the UK - online and off - that can help small businesses get the most out of digital. The campaign has set an ambition to help one million small businesses during and is currently running its second Days Of Digital, during which it shares and champions a different digital opportunity every day. Where there is a specific geographical, sectoral or economic need that is not being met by existing provision, we will ensure that action is taken to address such gaps.

We have already introduced a number of programmes aimed specifically at closing the gap in digitisation between different sectors and we will build on this work to tackle the specific issues certain industries face.

This will consider how UK manufacturing can become more productive and competitive by increasing its use of digital technology and automation. A key focus will be identifying where policy interventions and support mechanisms can encourage industry investment in technology and innovation and drive forward the automation of industrial processes.

This will include considering which sectors can benefit most from these advances, and looking at the experience of our international competitors. Two further examples of work with specific sectors is outlined in the box below. To ensure support is more effectively deployed to the regions and businesses that need it we will ensure interventions are based on quality data and business analytics. For example, we will explore how data — such as that held by HMRC and Companies House — can be used to identify scale-up businesses.





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