UK Business Secretary Peter Kyle has voiced his disapproval of the foreign sale of ARM Holdings, a leading UK microchip company, to Japanese firm Softbank. Kyle stated that had he been in government at the time, he would have intervened to block the sale. ARM Holdings, once considered the crown jewel of UK tech, was acquired by Softbank in 2016 for £24 billion ($32 billion) and is now listed on the New York Stock Exchange with a valuation of £285 billion ($380 billion).
Government Initiatives to Retain Tech Firms
During London Tech Week, Kyle highlighted several government initiatives aimed at attracting and retaining fast-growing technology companies in the UK. These include substantial investments in companies like Kraken, a software company in the energy sector, and Wayve, a self-driving technology firm. The government has also invested in Playground Global, a UK tech-focused investment fund.
Kyle emphasized the importance of creating an environment where tech companies choose to remain in the UK, rather than relying solely on interventionist policies. "We need to learn from these experiences," he said, advocating for a proactive approach to support tech firms.
Challenges in Other Sectors
While the tech sector benefits from government support, Kyle acknowledged challenges in other industries, particularly hospitality. This sector faces rising costs due to increases in the national living wage and employers' national insurance contributions. In response, the government has announced a phased approach to business rate rises for pubs.
Addressing Youth Employment
The issue of youth employment was also addressed, with former Health Secretary Alan Milburn warning of a "lost generation" of young workers. The number of young people not in employment, education, or training (NEETs) has surpassed one million. Kyle confirmed that the government is working closely with Milburn to tackle these structural challenges.
"I've upped the risk threshold," Kyle stated, emphasizing the need to balance caution with embracing new technologies like AI.
| Company | Sector | Investment Focus |
|---|---|---|
| Kraken | Energy Software | Public Money |
| Wayve | Self-Driving Tech | Public Money |
| Playground Global | Tech Investment Fund | Public Money |
The Business Secretary's comments underscore the UK's strategic focus on retaining its tech industry while addressing broader economic challenges.
