Question

To ask Her Majesty’s Government what assessment they have made of the digital economy in the United Kingdom.

The digital economy is considered an important sector by the Government, given its strong past performance and potential for future growth and the impact it has on all sectors of the economy. The ICT sector[1] has grown over two and a half times as fast as the whole economy over the past 10 years. In 2013, the sector contributed 7.5% (£113bn) to the UK’s GVA and supported 1.3m jobs in the UK economy. In GVA terms, the UK ICT sector is the largest in the EU, marginally ahead of Germany. In employment terms, the UK ICT sector is the second largest in the EU, marginally behind Germany[2].

The opportunities and barriers to successful growth in the sector were considered in the Information Economy Strategy, published in June 2013. The strategy set out a long-term strategic action plan for industry, government and academia working in partnership to create the business conditions for a thriving UK information economy.

One of the major challenges identified in the strategy was skills shortages. We are working in partnership with industry to make sure our education and training routes are providing the digital skills the UK needs now and in future. Specific action includes, a new Computing Curriculum launched in September with a greater focus on computational thinking, reforms to apprenticeships that enable employers to develop new standards which reflect the skills they need, a new Degree Apprenticeship in digital skills, which will enable young people to get a full honours degree alongside on the job training and a National College for Digital Skills, which will drive up further education standards.

[1] UN and OECD definition of ICT and Content and Media: which incorporates manufacturing of computers, communication equipment and consumer electronics, wholesale of information and communication equipment and information and communication services

[2] EuroStat Structural Business Statistics Database (based on UN/OECD definition.)