Tech Expert Calls For Strong UK Autumn Budget Support for Growth

ONE of the region’s leading tech experts has urged the Chancellor to put the sector at the heart of her upcoming Budget.

Many fear Rachel Reeves upcoming set of fiscal decisions could prove a nightmare before Christmas.

But Roy Shelton, the CEO of Connectus Business Solutions, said it can also be an opportunity to put tech at the heart of a wider period of economic reform.

Mr Shelton said: “The Chancellor’s first Autumn Budget in October 2024 delivered a tough reality check for UK businesses, with £40 billion in tax rises including a significant increase in employer National Insurance contributions from 13.8% to 15%. 

“These measures, designed to address a £22 billion fiscal black hole, have already begun squeezing business margins across sectors. As Rachel Reeves prepares to deliver her second Budget on 26 November 2025, technology businesses are bracing for further measures as economists predict additional funds may be needed to plug a widening fiscal gap.

“The upcoming Budget represents a critical moment for the technology sector. We need a Budget that recognises the vital role digital infrastructure and skilled tech workers play in driving UK productivity. Business rates relief, stable corporation tax, sensible immigration policy and investment in digital skills are essential foundations for growth. If we get this right, the UK tech sector can be a genuine engine for economic recovery.”

Here, Roy shares his expectations from the upcoming Budget and explains how these measures would benefit businesses, workers and the wider economy.

National Insurance and Operating Costs

“The April 2025 National Insurance rise, which saw employer NI climb to 15% whilst the secondary threshold dropped from £9,100 to just £5,000 annually, has already added substantial costs to payroll-intensive businesses like ours.”

“Further increases would be devastating for growth-focused companies. We’re forced to pass costs to customers or limit wage growth. With speculation that the Chancellor may need to raise £20-40 billion in additional revenue, businesses fear National Insurance remains a tempting target despite its erosion of competitiveness.”

Business Rates, Corporation Tax and Infrastructure

“Business rates represent another pressure point, particularly as the government explores fundamental structural changes,”

“We need stability and relief rather than additional burdens. Telecommunications infrastructure alone faces a potential £400 million annual burden from business rates reforms, costs which inevitably flow through to connectivity customers. On corporation tax, maintaining the current 25% rate represents a manifesto commitment. Reaffirming this pledge would provide crucial confidence for business investment decisions, particularly as the technology sector contributes £11.8 billion to the UK economy.”

Skills and Immigration

“The technology sector faces acute skills shortages, particularly in cyber security, cloud infrastructure and data analytics,”

“Skilled worker immigration is essential to addressing capability gaps that cannot be met domestically in the short term. With UK cybersecurity budgets predicted to grow 31% in 2025, demand for qualified professionals far outstrips supply.

“Substantially increased government grants supporting apprenticeships and training programmes focused on digital skills are vital. There is a serious lack of skilled resources around digital, IT and allied trades. Recent R&D tax credit statistics show claims fell 26%, partly reflecting reduced innovation capacity. The government’s £150+ million TechFirst training programme is positive, but these initiatives must be expanded and made more accessible to SMEs.”

Administrative Burden and Public Procurement

“HMRC administrative requirements represent a significant cost beyond the taxes themselves,”

“We need simplified processes, particularly around R&D tax credits where mandatory Additional Information Forms have increased burden whilst claim volumes fell sharply.

“When the government invests in modernising healthcare IT systems and education sector connectivity, procurement should prioritise UK-owned technology companies. The Spending Review 2025 committed additional NHS funding with digital transformation central to productivity gains. This creates a multiplier effect where public investment stimulates UK technology sector growth whilst delivering improved public services.”

Cyber Security Standards

“Mandating cyber security accreditations and insurance for companies above £250,000 annual revenue which handle personal or sensitive data is perhaps my most significant recommendation,

“With 43% of UK businesses experiencing cyber breaches in the past year and costs averaging £10,830 for medium-sized enterprises, cyber security can no longer be treated as optional. The forthcoming Cyber Security and Resilience Bill will expand regulatory requirements, and mandatory accreditation would establish baseline standards across all sectors.”

As the Chancellor prepares to deliver her Budget, businesses across the UK await clarity on the tax and spending decisions that will shape the economic landscape. For technology sector leaders like Roy, the Budget represents an opportunity for government to demonstrate it understands the critical role digital infrastructure plays in national competitiveness. Whether the Chancellor incorporates such growth-supporting measures whilst addressing fiscal constraints remains to be seen.