UK-based Tech Companies

Rachel Gilmour Excerpts

Wednesday 11th March 2026 Westminster Hall

[Mike Martin (Tunbridge Wells) (LD)]

It is an honour to serve under your chairship, Mr Betts. I congratulate the hon. Member for Bromley and Biggin Hill (Peter Fortune) on securing this important debate. We have heard from both sides of the Chamber that the British tech sector spreads into all our constituencies, so it concerns us all.

When the Government came to power, they said that their central mission was to provide growth. I posit that a key way to do that is by supporting our small and medium-sized businesses, because that is where growth comes from.

[Rachel Gilmour (Tiverton and Minehead) (LD)]

Does my hon. Friend share my view that, although we can be rightly proud of having the third most valuable tech ecosystem in the world, we cannot be complacent, especially amid increasing international uncertainty? Shearwell Data in my constituency is exactly the sort of business that he refers to. A family-run business, founded by Richard Webber in 1992, it now exports livestock management systems internationally. Mr Webber is a true local champion: he not only runs that fantastic family businesses, but works at the heart of our community in Wheddon Cross. Does my hon. Friend agree that the flight of UK tech companies to other markets such as the United States shows that we must do more to ensure British companies can start, stay and scale here?

[Mike Martin]

I thank my hon. Friend for her comprehensive intervention, which speaks to exactly the issues that I will raise.

The key example is DeepMind, which was the world-leading AI company. We, the Brits, failed to create the ecosystem, funding and risk-taking capital to enable it to scale fully. It was then bought by Google, and now the British Government contract with Google rather than with DeepMind. That is exactly my fear: even though we are the world’s third AI power, that could move away from us very quickly if we do not create the right ecosystem to support our tech firms.

If this Government are serious about supporting growth, we need to look at small and medium-sized enterprises. It will not surprise hon. Members that I have some examples from my Tunbridge Wells constituency. First, Capital Web develops AI software to help businesses to improve productivity. That is on the application side of AI; we are never going to compete on the frontier model side of AI, but the UK can certainly compete on how we implement those frontier models to work cases. I will also give a bit more detail about Adzuna, a firm based in Tunbridge Wells that helps people to find jobs.

The problem in the UK is one of scaling up. We often have support for businesses that are very small. We might have research and development tax credits or innovation grants, or we might help them to spin directly out of universities. However, what just does not happen in the UK is moving them on from the position where they have a concept and patent and are perhaps ready to scale rapidly. Those firms are left to go abroad, be taken over, or perhaps wither and see the market move on and eclipse them. That is the real danger.