What businesses are telling us
85%
64%
72%
47%
one in five
78%
70%
"Digital connectivity is vital to enabling innovation, and Virgin Media O2 is investing billions in next-generation networks, but that’s only part of the solution. We need agile regulation, patient capital, a strong talent pipeline, and long-term policy stability to unlock growth for the long term."
Lutz Schüler, CEO of Virgin Media O2
The five key ingredients to unlock growth in the UK
1. Future-proofed digital networks - innovation now demands low-latency, high-capacity infrastructure
Innovation requires low-latency, high capacity, ultra-resilient networks. However, rollout remains uneven and too often governed by outdated planning rules and slow local coordination
Digital infrastructure should be treated like national infrastructure, with policy that accelerates deployment and aligns with local and national ambitions.
77%
65%
High-quality digital infrastructure is helping us scale internationally and collaborate with global partners. Connectivity is the backbone of our innovation, competitiveness and long-term growth, and central to our business operations.
Air Aware Labs
Overall, the UK is competitive in innovation and talent, but it lags both the U.S. and China when it comes to the consistency and speed of digital infrastructure rollouts. This is something that needs to be urgently addressed.
MAGIC AI
2. Agile regulation - responsive frameworks that keep pace with emerging technologies
Regulation has held businesses back by increasing costs (48%), delaying launches of products and services (44%) and creating uncertainty (44%).
Regulation has emerged not as a barrier in principle, but in pace. Firms want to operate within clear rules but too often these are outdated, fragmented or opaque. There are clear calls for more testbeds, faster timelines, and better channels for co-designing regulation with industry.
78%
85%
The UK’s regulatory system is world-class in terms of trust and security. That trust is definitely needed and valued compared to some of our international competitors. But the processes are too slow and the regulation doesn’t reflect business requirements – it’s outdated and siloed in design
3AI
We need clarity on export and investment regulations for quantum and next-generation compute technologies, as this directly affects market and investor selection. Currently, it’s unclear and overly burdensome.
Quantum Dice
3. Capital incentives - patient funding to bridge the gap from idea to export
Investors and founders consistently point to persistent funding gaps between startup and scaleup. Although early-stage support is improving, many companies still struggle to access the long-term, patient capital that allows breakthrough innovation to become exportable success. We would like to see stronger access to capital throughout the funding cycle.
65%
80%
The UK is strong when it comes to early-stage startup funding – schemes like the Enterprise Investment Scheme are hugely valuable for getting businesses off the ground. But when it comes to later-stage growth, the investment appetite just isn’t there. For companies like ours, which could be tomorrow’s industry leaders, we need stronger support for scaling up – and that’s what’s currently missing.
3AI
In the UK, we’ve spent the past 15–20 years building a strong startup ecosystem — not just funding, but also advice and support on how to scale great businesses. We’re still some way behind the US, which has had a decades-long head start, but we’re probably in joint second place alongside hubs like New York, Tel Aviv, parts of the Middle East, and Scandinavia. Our ability to nurture world-class tech companies now puts us ahead of most countries globally
Allica Bank
4. AI-ready talent - a diverse, adaptable workforce that can power digital transformation
Firms report growing difficulty finding the digital and technical skills they need – not just in specialist AI roles, but in core operational and delivery teams. The problem is not just quantity, but adaptability. Business leaders want to see more agile models of training, more flexible visa routes for high-demand sectors, and an end to the false binary between academic and vocational paths.
1 in 3
70%
visas and incentive structures can slow down bringing in international talent – and that talent is critical if you want to scale internationally.
PlayerData
We must recognise the importance of upskilling the wider workforce if the UK is to fully capitalise on its expertise in areas like machine learning. This means equipping people with the skills to work with technologies such as AI from an early stage, ensuring that as businesses scale, there is a broad, capable workforce ready to take on the skilled roles they create – otherwise we risk losing out to international competitors, that are already ahead of us.
3AI
5. Long-term certainty - a clear industrial vision that encourages investment and strategic risk-taking
One of the biggest barriers to investment is the ‘policy whiplash’ that comes from shifting strategies, short funding cycles, and unclear roadmaps. Too many firms feel they are betting on politics, not planning. There is growing appetite for a clearer industrial vision, underpinned by long-term thinking – not just a new minister or mission every few years. If Britain wants the world to invest in its future, it must start by investing in its own predictability.
90%
68%
The UK has strong intent, funding, and infrastructure commitments. A good example is the £2 billion Compute Roadmap, which sets out a plan to embed next-generation computing solutions into national compute infrastructure and to strengthen digital sovereignty. That gives confidence to both founders and investors. But this momentum has to be sustained if we’re to scale up and keep pace internationally.
Quantum Dice
"The UK tech sector is thriving, and the country has firmly established itself as Europe’s AI hub. [The UK] is dynamic, resilient, and powered by a world-class innovation ecosystem."
Steffen Tjerrild, Co-founder of Synthesia
We have reasons to be optimistic.
The UK boasts world-class universities, deep pools of talent, a trusted legal system, and global cities that remain magnets for ideas and investment.
This Government has put growth at the top of its agenda; explicitly committed to working with businesses to create the conditions they need to thrive. It’s already making great strides in this area. Britain’s story is not one of inevitable decline; it is one of untapped potential and choices.
Government can match business’ ambition by removing the frictions that founders experience every day. Do that, and the UK can become the world’s most AI-ready economy – perhaps not by building every frontier model, but by turning AI into real-world value faster than anyone else.
We can keep our founders, our jobs and our future here – but we must choose to act now.
Britain’s key strengths
Growth Signals
This report captures the experience of businesses across the UK. It’s clear that action is required if we’re serious about unlocking a new wave of British-led growth. Let’s enable the businesses doing it.