Will the New Labour Create a UK Brain Drain? On July 4th, 2024, a new government formed as voters visited polling booths. There was a historically low turnout. Labour, yet won with a massive majority. The Conservatives took a gigantic hit. More than voting for a positive message, the electorate voted against the incumbent government. They voted against 14 years of conservative government. Another issue is whether Prime Minister Sir Kier Starmer has a clear mandate. Starmer’s early focus in his leadership has been on social unrest. As we enter the second month of Labour’s reign, attention will be paid to the British economy.
Aside from the reasons the Labour government was elected, social unrest exists. Criticisms are directed at the government. There are also concerns over science and technology funding. These concerns include funding the leading frontiers of science and technology, namely quantum technology and quantum computing.
A budget is expected in October 2024, and rumors of a wealth tax are already circulating. Changes to the tax landscape drastically impact the UK’s ability to stay competitive. They also affect its capacity to attract the best talent, start-ups, and established businesses. Tightening labour restrictions also make companies think twice about hiring from the UK. It remains to be seen what will unfold in the budget. Nevertheless, the rumors are already likely to be biting inward investments.
Funding for science projects has already been cut. Funding has also been removed from Archer2, a supercomputer cluster that enables science and AI to progress. Cutting this off puts Britain at serious risk of falling behind so-called “developing” countries. This affects the development of emerging and deep technologies of the future, like Artificial Intelligence and Quantum Computing. The talent pool depleted without investment in computing clusters and research and development.
The United Kingdom has brought the world Bletchley Park. This WWII site was responsible for work on the first computer, Collusus. It also developed technologies by the likes of Alan Turing, one of the forefathers of Artificial Intelligence. More recently, there were Acorn Computers and Sinclair (of Spectrum Fame); Acorn Computers became ARM. ARM is one of the most formidable semiconductor designers on the planet. It powers a vast array of devices, including the device that this is being used on.
ARM’s founder Herman Hauser continues to push the frontiers of technology. He is also involved with the burgeoning field of quantum computing. Sir Clive Sinclair gave the world the inexpensive home computer. The models ranged from the ZX80 and ZX81 to the now infamous Spectrum Computer. Sir Clive brought an entire generation of computers to kids’ bedrooms across the UK. This act spawned gaming industries and companies that would likely never be around today.
There was even a BBC Micro, a state-sponsored drive to get the UK to use computers. The beige machine found its way into schools and homes. It became a firm favorite for helping with technical and mathematical literacy.
The UK is no stranger to innovation. Many technologies other countries use, exploit, and commercialize were invented here.
Cambridge, UK, saw one of the first genuine artificial intelligence companies emerge, named Autonomy, when AI wasn’t even considered a “thing.” The company was eventually sold to Hewlett-Packard. It has been mired in an ongoing legal case. Recently, the case saw its eponymous founder, Mike Lynch, tragically end in a boating incident. Mike Lynch was also a founder of Invoke Capital, a well-respected Venture Capital Fund. Invoke Capital invested in Darktrace, a cyber security company.
UK: The Natural Home of the Quantum Computing?
The UK education ecosystem features some of the best universities on the planet. This ecosystem possesses the talent to develop the tech of the future, which often emerges from Oxbridge or one of the London-based universities. The UK has many talents. This talent is developing the latest innovation, which spans everything from Photonic Quantum Computing to Ion Trap Quantum Computers.
Many pure-play quantum companies have spun directly out of the university system. Companies like Quantinuum (formerly CQC) have started from an academic foundation. The same applies to Oxford Quantum Circuits, Oxford Ionics, Phasecraft, and Universal Quantum. That is why the threat to science and tech funding will be a “killer move.” It will guarantee that ventures that get their footing from an academic base will never be conceived. They will never be birthed.
Academic Research and Spin-Outs
The UK has strong science and technology foundations and reasonably porous borders between commercial and academia. Granted, it’s not as strong as the US. But we can point to it with evidence, not just today but in the past. Autonomy, for example, could have been the UK’s answer to Google. There should be more focus on getting nascent technology out of the lab. It should then be transferred to businesses that can capitalize on it. This process will generate jobs and wealth for the UK.
If we strangle the UK’s ability to generate groundbreaking research, we will strangle the ability to generate companies. These companies power the future economy. Tomorrow’s spin-outs will need access to computing facilities. This means that access to running the latest AI models, for example, can only be done with massive capitalization.
Playing in the sandpit or focusing on R&D will naturally stifle access to resources that would otherwise be prohibitive for researchers. To use the leading technology, compute clusters will see a Brain Drain away from the UK. They will move to more promising climes, to other countries that understand the transformative nature of technology.
Like quantum computing, the UK can punch above its weight in AI and its ilk. This is possible only if the government sees the enormous return on investment that these sectors can bring. The short-sightedness is ruining the technology landscape of the future.
PsiQuantum should have been a UK success story. When raising capital, the founders fled to Silicon Valley and Australia, which provided a massive tranche of funding. They likely would never have raised more than a single-digit percentage of the $500m raised. There isn’t a culture of risk in the UK – and this is before Labour.
Labour’s approach to investment is likely to strangle the current ecosystem. It will push more talent to look for more friendly climes. Couple that with increased taxes and a less friendly business environment. By the end of the Labour term, the next government won’t be capable of correcting the ship. So much damage has been done.
The next future DeepMind will happen abroad, maybe even in the UAE. The next ARM will never step foot on the shores of the UK. The UK needs tech investment that includes access to talent. Legislation supportive of innovation and resources are also necessary. Without these, the UK will become a pariah. As a result, the UK will get overlooked in favor of better environments.
The issues are not just constrained to the UK but wider Europe. There are (no) or very few major technology platforms of products that have emerged from Europe. Something in the water creates a fear of risk and innovation. This creates a climate that shies away from the risk of creating disruptive global companies.
The UK has a great Quantum Computing Scene. It employs thousands of skilled engineers, scientists, product managers, and developers. Let’s make the UK the hotbed of Quantum Innovation it deserves. That means funding, support for businesses, and an ecosystem that supports entrepreneurs to create future computing devices. Let’s build the quantum equivalent of ARM in the UK; there is already a great start.
