Why the chancellor must prioritise digitalisation in her fiscal statement

Ahead of the upcoming fiscal event today/Monday and Global Investment Summit, chancellor Rachel Reeves must act decisively around ensuring that the UK's SMEs don't get left behind in the global race to digitalisation.

According to the International Monetary Fund, increasing the adoption of artificial intelligence (AI) could boost the UK's economic growth by 1.5% every year for a decade.

Google's report this week talked about a "once in a generation opportunity to empower British workers, by equipping them with future-focused AI skills to help develop their careers and grow UK businesses".

It talked about the need to 'identify ways to empower groups who may have higher barriers to adopting AI' an effort it claimed could help unlock more than £400 billion in AI-powered economic growth by 2030 and 'improve the working lives of millions'.

Enterprise Nation is one of the companies partnering with Google on this important work. We recognise that a key element of making this a success will be for the Government to back small business and prioritise boosting the fundamental uptake of digital tools while supporting SME investment in technology.

The most recent World Economic Forum report in ICT adoption ranks us well behind most developed nations (31st).

As the new government puts economic growth and maintaining the highest rate of economic growth in the G7 at the heart of its agenda, we need to rapidly increase digital adoption and skills among SMEs.

There are around 5.5 million SMEs in the UK, representing over 99% of the country's business population. My company, Enterprise Nation, works with these businesses every day, providing targeted digital support through our platform.

We find that SMEs are ready and willing to embrace the benefits of new technologies, but face a mix of challenges that prevent them from doing so.

These business owners are simply busy using their limited resources to get on with the job. In this context, digital investment and upskilling are seen as additional items on their ever-growing to-do list.

I have always believed that helping our small businesses to thrive should not be the sole responsibility of government. The private sector has much to give - and much to gain - from a vibrant and thriving small business sector.

We have worked with Google, as well as Cisco, Vodafone Business and Sage to create a free Tech Hub to accelerate digital adoption by SMEs and boost the nation's productivity.

We also developed a one-stop-shop business support platform with Mastercard's Center for Inclusive Growth, which analysis shows has resulted in an 11 per cent increase in the digital skills of 3,500 small business owners, rising to 17 per cent for ethnic minority founders and 24 per cent for female founders.

This three-year digital programme has been delivered at no cost to the businesses using its resources -- and at no cost to the public purse.

One of the key principles of this technology is that everything a small business owner needs is in one place. This includes the over 1,000 peer-rated resource programmes we have sourced from accredited providers, allowing us to reach a diverse audience of entrepreneurs.

Skills and confidence, as well as investment, play a key role in how technology transforms businesses -- and ultimately our economy. So, any attempt to force or encourage adoption needs to be delivered with digital guidance and support and made as flexible and as easy to access as possible.

Government cannot achieve its ambitious goals alone, but neither can the private sector. We need a collaborative partnership working in tandem to realise the UK's digital potential.

The Tech Hub's policy consortium produced a report outlining the steps we believe the Government should take to encourage digital adoption by SMEs.

These include proposals for the Government to offer targeted tax incentives as well as providing new training programmes and support to create more awareness and proficiency in using new technologies.

Entrepreneurial skills will be crucial to improving productivity, providing a platform for businesses to create good jobs and boosting local economies.

Digitalisation underpins each of the government's growth priorities and the fundamental changes outlined in its manifesto - such as rethinking business rates, boosting SME procurement and tackling late payments.

In short, the solutions exist, the private sector is ready to invest and the transformative technology is ready to be unleashed. Let's do business.  

Emma Jones CBE, founder, Enterprise Nation