Budget must support IT sector to create economic growth

Chancellor George Osborne's Budget announcement today must recognise the IT industry's fundamental role in economic growth creation, Intellect has warned.

John Higgins, the industry body's director general, says there is a danger that the government will fail to understand the role technology can play in delivering the whole UK growth strategy. "Ministers have made it clear that the growth agenda will be central to the Budget and we believe they must put technology at the heart of their plans," he says. A survey released by IT trade body Intellect shows that 75 per cent of companies fear the government does not understand how the IT sector can help deliver innovation and growth.

The IT and telecoms sector employs more than 1.5 million people in the UK, and employment is forecast to grow at 2.1% per annum, which is nearly five times the UK average, over the next five years, according to Intellect. The government must support world-class technology development and incentives for technology investment if the economy is to break through into growth.