The Labour Party has unveiled its 2024 manifesto ahead of the general election on July 4, outlining a series of ambitious tech policies aimed at fostering innovation and bolstering the UK’s position in the global technology landscape.
Here’s a breakdown of the key tech commitments that startups, investors, and industry stakeholders should pay close attention to.
1.Data Centre Planning Reform
In a bid to support the UK’s burgeoning AI sector, Labour has committed to reforming data centre planning regulations.
The party plans to designate data centre projects as “nationally important,” a move that would shift planning decisions from local councils to ministers.
This reform aims to eliminate existing barriers and expedite the construction of new data centres, particularly on brownfield sites in green belts around cities.
This policy comes in response to the rejection of a £2.5 billion hyperscale data centre project under current planning rules.
Additionally, Labour proposes establishing a National Data Library to centralize research efforts and enhance data-driven public services.
2.Closing the Private Equity Tax ‘Loophole’
Labour has pledged to address what it terms a tax “loophole” in the private equity industry. Currently, performance-related pay in private equity is taxed as capital gains rather than income.
Labour plans to change this, ensuring that profits are taxed at the higher income rate.
This change is expected to impact approximately 2,000 individuals who receive carried interest each year, potentially generating an additional £2 billion in tax revenue annually.
3.Long-term R&D Funding
One of Labour’s significant commitments is to overhaul funding cycles for research and development.
The party argues that the current short funding cycles, typically spanning one to five years, hinder long-term planning and innovation.
To address this, Labour proposes implementing 10-year budgets for key R&D institutions.
Simplifying the procurement process is also on the agenda to further reduce barriers to innovation.
4.Reforming Regulatory Bodies
Labour has highlighted the inadequacy of current regulatory bodies in dealing with rapid technological advancements.
The party plans to establish a Regulatory Innovation Office, which would consolidate existing government functions to enable quicker, more coordinated regulation.
This office aims to reduce approval times and enhance cross-regulatory coordination, addressing concerns that current regulators are overworked and under-resourced.
5.AI Safety
AI regulation is a cornerstone of Labour’s tech policy. The party intends to introduce regulations to ban the creation of sexually explicit deepfakes, which are AI-generated images resembling real people without their consent.
This move follows a debate in the House of Lords on the potential harms of such practices.
Furthermore, Labour plans to impose binding regulations on companies developing powerful AI models to ensure safety and ethical standards.
6.British Business Bank Reform
Labour aims to reform the British Business Bank to promote greater investment in small and medium-sized enterprises (SMEs) across the UK.
The proposed changes include granting the bank more autonomy by removing the need for state approval for strategy changes and introducing new key performance indicators to track regional funding progress.
These reforms are designed to ensure that SMEs receive adequate support and funding, fostering regional economic growth.
Labour’s tech manifesto presents a comprehensive plan to drive innovation, enhance regulation, and support key sectors of the economy.
By focusing on long-term investment and streamlined processes, the party aims to create a more robust and dynamic tech landscape in the UK.
As the general election approaches, these policies will be critical for stakeholders to monitor, given their potential to shape the future of the UK’s tech industry.