Spring Budget 2023 and the tech industry: Finding the talent to take you forward

The Spring Budget 2023 placed the tech sector at the centre of the UK’s plans for growth. Featuring investment zones, R&D tax credits, and billions to boost quantum computing, Chancellor Jeremy Hunt’s announcement handed tech firms the baton to run with research, development, and innovation.

With almost £3.5 billion earmarked to make the UK a science and technology superpower, the budget aims to kickstart economic growth and attract overseas investment. Here’s just a taste of what the tech industry can expect:

• Quantum Strategy

The new Quantum Strategy will inject £2.5 billion into quantum computing over the next 10 years. The plan aims to increase training for quantum specialists, secure commercial investment, and establish the UK as a global centre for quantum research.

• Regional investment and innovation

An Innovation Accelerator plan will direct £100 million into 26 transformative R&D projects in Glasgow, Greater Manchester, and the West Midlands. Meanwhile, 12 high-potential investment zones will launch around university tech hubs across the UK.

• Tax incentives

From 1 April 2023, loss-making small and medium-sized enterprises (SMEs) will receive a higher rate of R&D tax relief. In addition, a new ‘full expensing’ scheme will allow companies to claim 100% capital allowances on qualifying plant and machinery investments.

• Strong focus on AI

A world-class exascale supercomputer and dedicated AI Research Resource will turbocharge capabilities and progress in the AI arena. For the next decade, a new £1 million Manchester Prize will champion breakthroughs in key areas of AI.

• Regulatory reform

The government will accept all recommendations from Sir Patrick Vallance’s review into regulating emerging digital technologies, helping to set the gold standard for pro-innovation regulation.

Getting ahead of the curve

The government’s fiscal plans paint an exciting picture for UK tech. But sourcing and developing the skills to deliver the vision could be challenging. Tech businesses are already struggling to fill critical roles and will need to move quickly to attract, retain, upskill, and reskill staff that are fit for the future.

The specifics of the Spring Budget’s initiatives are yet to be revealed – but firms can take immediate steps to strengthen their talent pipeline. Start by rethinking tech recruitment, cultivating current talent, and capitalising on support that’s available, right here and right now.

Tackling talent scarcity

Talent shortages have dogged the tech industry in recent years, with in-demand candidates fielding multiple offers and driving up pay and benefits. Additional investment will speed the sector’s already rapid evolution, and the space between required skills and relevant candidate expertise could significantly widen. To continue powering change, technology firms should consider ways to future-proof their HR, training and hiring plans.

• Forward-looking recruitment:

The gulf is getting larger between what’s technologically possible and the available talent to bring it to life. To stay competitive, employers may need a pragmatic approach to hiring, taking on promising candidates with immediate upskilling potential.

• Talent development:

Building expertise across your established workforce could bridge the expanding knowledge divide. Introduce upskilling and reskilling programmes to equip existing workers with future-facing capabilities.

• Employee retention:

Amid intense competition for candidates, technology companies shouldn’t neglect the needs and knowledge of their current workforce. Investing in employee engagement, retention, and training programmes can release untapped potential and keep current staff on board.

Adopting innovation-led recruitment

The government’s goal to build a UK-based Silicon Valley promises to power digital breakthroughs across businesses of all sizes. To deliver on the growing appetite for innovation, tech firms will need bigger workforces, broader skillsets, and brand-new ideas. Now’s the time to widen the recruitment net and embrace new working methods.

• Diversity and inclusion:

Tech businesses thrive on the new ideas and fresh perspectives of a diverse workforce. Organisations will need to embrace diversity to earn a competitive advantage in recruiting and retaining talent – and to stand out in a market where fairness, representation, and equality matter more than ever.

• New ways of working:

As attitudes to work and technology change, so must our approach. Employers that embrace new working practices that emphasise flexibility and the employee experience will be better placed to take their teams forward through 2023 and beyond.

Maximising modern apprenticeships and multi-generational talent

The new budget outlines plans for ‘returnership’ programmes aimed at upskilling people over 50 to re-enter the workforce. The initiative runs alongside the existing Apprenticeship Levy, a funding pot supported by businesses to drive apprenticeship training.

While details on returnerships are still unclear, companies can take immediate advantage of the Apprenticeship Levy, which is open to people of all ages – and even applies to your existing staff. Modern apprenticeships can be used to access free training that expands employee skillsets and boosts competitiveness in a cost-effective way.

Both schemes point to the importance of multi-generational workforces in solving the UK’s increasing skills deficit. When recruiting and retaining workers, tech firms should look at hiring practices, flexible packages, and employee support that work for all candidates – from Gen Z to Baby Boomers.

• Varying employee priorities:

To attract top talent from all age groups, companies should align their value propositions with candidate priorities across various generations, including hybrid working, clear career pathways, and wellbeing programmes.

• Consciously inclusive hiring:

There’s a crucial link between inclusivity and innovation. Anonymous CV screening, neutral language for job descriptions, and partnerships with ED&I- aware recruiters help guarantee fair and equal processes that attract people with diverse skills, experience, ideas and approaches.

Get industry intelligence from a tech recruitment specialist

The Spring Budget 2023 has set out an ambitious future for UK tech – and firms will need robust talent solutions to make it a reality.

Adecco’s technology recruitment team helps you find the right people in a rapidly changing market, with targeted insights and tailored support. To discuss how government plans could shape your resourcing strategy for 2023 and beyond, get in touch today.