While there has been much anxiety over the competitive position of the City this year – with Amsterdam overtaking London as Europe’s biggest centre for share trading and the value of the French stock market overtaking that of the UK – fresh data suggests the UK’s tech sector continues to enjoy a significant lead over its European counterparts.
Figures prepared by the data and intelligence platform Dealroom for the Digital Economy Council suggest that fast-growing UK tech companies raised £24bn this year – more than their counterparts in France and Germany combined.
It takes the total raised by UK tech companies during the last five years to £97bn.
The numbers are all the more striking because, for much of the year, capital has become harder to come by as interest rates have risen and investors around the world have become more sceptical about the tech sector.
Dealroom’s figures suggest that the UK’s tech industry now enjoys a value of $1trn – making it only the third country, after the United States and China, to achieve this milestone and confirming it as the leading European tech ecosystem.
Germany’s tech sector is now valued at $467.2bn while that of France is worth $307.5bn.
Not only is the UK’s tech sector attracting more venture capital than its European counterparts, according to the figures, it is also creating more value for investors.
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The figures suggest that, since the beginning of the century, the UK has created 144 ‘unicorns’ – start-ups that have gone on to achieve a valuation of more than $1bn – and 237 so-called ‘futurecorns’, companies which are valued at north of $250m and which are deemed to be on track to achieve unicorn status.
Paul Scully, the digital minister, said: “UK tech has remained resilient in the face of global challenges and we have ended the year as one of the world’s leading destinations for digital businesses.
Image: Paul Scully says the report’s figures underline the importance of government investment in the tech sphere
“This is good news and reflects our pro-innovation approach to tech regulation, continuing support for start-ups and ambition to boost people’s digital skills.”
The figures underline the UK’s growing attraction to international venture capital firms.
This year has seen some of the biggest US tech investors, including General Catalyst, Sequoia Capital and Lightspeed – all of which opened offices in the UK last year – bulk up their presence by taking on more staff.
They have been joined in the UK this year by New Enterprise Associates, the 45-year-old US venture capital firm that has backed the likes of TikTok owner ByteDance and by Earlybird, the Berlin-based venture capital firm.
UK-based funds have raised £9.2bn this year – just ahead of the £9bn they raised in 2021 – with which to back fast-growing companies and start-ups.
Chris Bischoff, managing director at General Catalyst, said: “We established a presence in London as we believed the UK is a stand-out ecosystem globally. Our experience over the last 18 months has enhanced our appreciation for this remarkable ecosystem, enabling us to find and support early stage companies that are working toward accelerating change in their industries.
“As importantly, our values of responsible innovation and radical collaboration are perfectly in tune with the UK’s approach to innovation.”
The Dealroom figures also suggest that tech innovation is being spread across the UK.
Image: The university city of Cambridge is among those home to at least two tech unicorns. Pic: Cambridge University Library
There are now eight cities – Bristol, Cambridge, Edinburgh, Leeds, London, Manchester, Nottingham and Oxford – which are home to two or more unicorns.
Some of these are seen as now challenging the dominance of leading US tech ecosystems in specific disciplines: Cambridge was recently named as the world’s third most important science hub behind only the Bay Area of San Francisco and Boston in Massachusetts. Oxford was fifth on the list.
The University of Cambridge also recently topped the global rankings for producing the highest number of successful tech founders, with more than 500 of its alumni having raised at least $10m in funding.
The universities of Oxford, Bristol, Nottingham and London all featured in the top 20 globally alongside leading US establishments such as Harvard and the Massachusetts Institute of Technology (MIT).
Amid a tight labour market, with more than three million people now working in UK tech, the sector is increasingly taking on people at entry level. The job search engine Adzuna reports that, in November, there were more than 15,000 entry-level tech roles – up from 6,596 in November last year.
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This has led to the emergence of a number of so-called ‘edtech’ start-ups dedicated to equipping people with skills, such as coding and cyber security, needed to build a successful career in tech. They include Multiverse, the UK’s first edtech unicorn, which was founded by Euan Blair, son of Sir Tony Blair, the former prime minister.
Some of these, such as Code First Girls, are specifically aimed at increasing the number of women working in the tech sector.
Anna Brailsford, the chief executive of Code First Girls, said: “From using AI to tackle healthcare inequality to designing and building space missions, every day there are incredible tech businesses being launched and scaled in the UK.
“Yet too few women have the opportunity to work for these impactful start-ups because they have not previously been given the encouragement to look at a career in tech or learn key skills.
“We’re aiming to train 26,000 women in the UK over the next five years and place them in tech roles so they can use their knowledge and expertise to change this industry for the better.”
The water shortfall situation in England has been described as a “nationally significant incident”, with five areas officially in drought ahead of an amber heat health alert coming into force for large parts of the country.
Six further areas are experiencing prolonged dry weather following the driest six months to July since 1976.
Many river flows and water reservoir levels in England continue to recede compared to June despite some storms and showers in July, which helped mask that it was still the fifth-warmest July on record.
Image: A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters
Image: A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA
Drier conditions have returned in August and now parts of the country are bracing for the fourth heatwave 2025, with today’s amber alert covering the East Midlands, West Midlands, East of England, London, and the South East.
Temperatures are forecast to rise above 30C (86F) in some areas, possibly even soaring past 35C (95F) in the south, threatening this year’s heat record of 35.8C (95.4F) in Faversham, Kent, on 1 July.
A milder yellow heat health alert is in place for the South West, North East, North West, Yorkshire and The Humber.
The alerts by the UK Health Security Agency (UKHSA) are due to be in place from 9am today until 6pm tomorrow, and put more pressure on struggling public water supplies and navigational waterways.
Image: People enjoy the weather in Barnes on Monday. Pic: PA
Image: A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters
‘We are calling on everyone to play their part’
The National Drought Group (NDG), which includes the Met Office, government, regulators, water companies, the National Farmers’ Union, Canal & River Trust, anglers, and conservation experts, met at the start of the week to highlight the water-saving measures each sector is taking.
The group praised the public for reducing their daily usage, after Yorkshire Water reported a 10% reduction in domestic demand following the introduction of their hosepipe ban, which saved up to 80 million litres per day.
“The situation is nationally significant, and we are calling on everyone to play their part and help reduce the pressure on our water environment,” said Helen Wakeham, NDG chair and director of water at the Environment Agency.
“Water companies must continue to quickly fix leaks and lead the way in saving water.
“We know the challenges farmers are facing and will continue to work with them, other land users, and businesses to ensure everyone acts sustainably.”
Current drought situation in England
– Drought has been declared in: Yorkshire, Cumbria and Lancashire, Greater Manchester Merseyside and Cheshire, East Midlands, West Midlands.
– Areas in prolonged dry weather (the phase before drought) are: Northeast, Lincolnshire and Northamptonshire, East Anglia, Thames, Wessex, Solent and South Downs.
– Yorkshire Water has a hosepipe ban in place for all its customers, while Thames, South East, and Southern Water have postcode-specific bans.
– Reservoirs fell by 2% last week and are now 67.7% full on average across England. The average for the first week of August is 80.5%.
– The lowest reservoirs are Blithfield (49.1%), Derwent Valley (47.2%), Chew Valley Lake (48.3%), Blagdon (46.3%).
– Rainfall in July was 89% of the long-term average for the month across England. This is the sixth consecutive month of below-average rainfall.
– Across the country, 51% of river flows were normal, with the rest below normal, notably low or exceptionally low.
– Two rivers – Wye and Ely Ouse – were the lowest on record for July.
– There are currently navigation closures or restrictions across sections of the Leeds and Liverpool, Macclesfield, Trent and Mersey, Peak Forest, Rochdale, Oxford and Grand Union Canal.
The rainfall at the end of July was welcomed by growers, even though the dry weather is set to have an impact on the harvest, with the National Farmers Union (NFU) noting how water shortages have impacted the growing season.
“Some farms are reporting a significant drop in yields, which is financially devastating for the farm business and could have impacts for the UK’s overall harvest,” NFU vice-president Rachel Hallos said.
Ms Hallos urged that investment in water infrastructure and a more effective planning system was urgently needed “to avoid the swing between extreme drought and flooding and to secure water supplies for food production”.
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The dry weather also impacts the health of the waterways, as low water levels reduce oxygen levels in the water, which can lead to fish deaths, more algae growth, and could prevent wildlife from moving up or downstream.
Water minister Emma Hardy said the government is “urgently stepping up its response” to respond to dry weather, including investment in new reservoirs, but called on firms to do their bit.
“Water companies must now take action to follow their drought plans,” she said.
“I will hold them to account if they delay.”
Tips for staying cool from the UKHSA
Close windows and curtains in rooms that face the sun
Seek shade and cover up outside
Use sunscreen, wear a hat and sunglasses
Keep out of the sun at the hottest times, between 11am and 3pm
Restrict physical activity to the cooler mornings or evenings
Know how to respond to heat exhaustion and heatstroke
“We face a growing water shortage in the next decade,” the minister warned, which she said is why building new reservoirs – something the government has criticised the previous administration for not doing – is so important.
Campaigners have criticised a change to the rules around declarations of interest in the House of Lords as a “retrograde step” which will lead to a “significant loss of transparency”.
Since 2000, peers have had to register a list of “non-financial interests” – which includes declaring unpaid but often important roles like being a director, trustee, or chair of a company, think tank or charity.
But that requirement was dropped in April despite staff concerns.
Tom Brake, director of Unlock Democracy, and a former Liberal Democrat MP, wants to see the decision reversed.
“It’s a retrograde step,” he said. “I think we’ve got a significant loss of transparency and accountability and that is bad news for the public.
“More than 25 years ago, the Committee on Standards in Public Life identified that there was a need for peers to register non-financial interests because that could influence their decisions. I’m confused as to what’s happened in the last 25 years that now means this requirement can be scrapped.
“This process seems to be all about making matters simpler for peers, rather than what the code of conduct is supposed to do, which is to boost the public’s confidence.”
Image: MPs and peers alike have long faced scrutiny over their interests outside Westminster. File pic
Rules were too ‘burdensome’, say peers
The change was part of an overhaul of the code of conduct which aimed to “shorten and clarify” the rules for peers.
The House of Lords Conduct Committee argued that updating non-financial interests was “disproportionately burdensome” with “minor and inadvertent errors” causing “large numbers of complaints”.
As a result, the register of Lords interests shrunk in size from 432 pages to 275.
MPs have a different code of conduct, which requires them to declare any formal unpaid positions or other non-financial interests which may be an influence.
A source told Sky News there is real concern among some Lords’ staff about the implications of the change.
Non-financial interest declarations have previously highlighted cases where a peer’s involvement in a think tank or lobbying group overlapped with a paid role.
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There are also examples where a peer’s non-financial interest declaration has prompted an investigation – revealing a financial interest which should have been declared instead.
In 2023, Lord Skidelsky was found to have breached the code after registering his role as chair of a charity’s trustees as a non-financial interest.
Image: Lord Skidelsky. Pic: UK Parliament
The Commissioner for Standards investigated after questions were raised about the charity, the Centre for Global Studies.
He concluded that the charity – which was funded by two Russian businessmen – only existed to support Lord Skidelsky’s work, and had paid his staff’s salaries for over 12 years.
In 2021, Lord Botham – the England cricket legend – was found to have breached the code after registering a non-financial interest as an unpaid company director.
The company’s accounts subsequently revealed he and his wife had benefitted from a director’s loan of nearly £200,000. It was considered a minor breach and he apologised.
Image: Former cricketer Lord Botham. File pic: PA
‘Follow the money’
Lord Eric Pickles, the former chair of the anti-corruption watchdog, the Advisory Committee on Business Appointments, believes focusing on financial interests makes the register more transparent.
“My view is always to follow the money. Everything else on a register is camouflage,” he said.
“Restricting the register to financial reward will give peers little wriggle room. I know this is counterintuitive, but the less there is on the register, the more scrutiny there will be on the crucial things.”
Image: Lord Eric Pickles
‘I was shocked’
The SNP want the House of Lords to be scrapped, and has no peers of its own. Deputy Westminster leader Pete Wishart MP is deeply concerned by the changes.
“I was actually quite horrified and quite shocked,” he said.
“This is an institution that’s got no democratic accountability, it’s a job for life. If anything, members of the House of Lords should be regulated and judged by a higher standard than us in the House of Commons – and what’s happened is exactly the opposite.”
Image: Michelle Mone attends the state opening of parliament in 2019. Pic: Reuters
The government has pledged to reform the House of Lords and is currently trying to push through a bill abolishing the 92 remaining hereditary peers, which will return to the House of Commons in September.
But just before recess the bill was amended in the Lords so that they can remain as members until retirement or death. It’s a change which is unlikely to be supported by MPs.
Image: MPs and peers alike have long faced scrutiny over their interests outside Westminster. File pic
A spokesperson for the House of Lords said: “Maintaining public confidence in the House of Lords is a key objective of the code of conduct. To ensure that, the code includes rigorous rules requiring the registration and declaration of all relevant financial interests held by members of the House of Lords.
“Public confidence relies, above all, on transparency over the financial interests that may influence members’ conduct. This change helps ensure the rules regarding registration of interests are understandable, enforceable and focused on the key areas of public concern.
“Members may still declare non-financial interests in debate, where they consider them directly relevant, to inform the House and wider public.
“The Conduct Committee is appointed to review the code of conduct, and it will continue to keep all issues under review. During its review of the code of conduct, the committee considered written evidence from both Unlock Democracy and Transparency International UK, among others.”
A man jailed for plotting to murder a member of the gang that carried out Britain’s biggest-ever cash robbery has been attacked in prison.
Daniel Kelly, 46, was one of three men found guilty of conspiring to murder Paul Allen, 46, who was shot twice as he stood in his kitchen in Woodford, east London, on 11 July 2019.
The attack left the former cage fighter – who was a member of the Securitas heist gang that stole £54m from a cash depot in Tonbridge, Kent, in 2006 – paralysed from the chest down.
Image: Paul Allen was jailed for 18 years over the Securitas heist. Pic: PA
Image: Paul Allen was in the kitchen when he was shot. Pic: Met Police
Kelly was sentenced to 36 years in prison, with an extra five years on licence, at the Old Bailey in April.
Louis Ahearne, 36, was jailed for 33 years, and his brother Stewart Ahearne, 46, was jailed for 30 years over the shooting, likened by detectives to “the plot [of] a Hollywood blockbuster”.
A source told Sky News that Kelly was attacked by another prisoner who tried to slit his throat on his arrival to Frankland prison, in County Durham, last week.
“Danny is a gunman happy to shoot people but not scary with his hands. He’s a dead man walking in jail,” they said.
It is understood Kelly suffered only minor injuries and the Prison Service is treating the attack as a minor incident.
Allen was living in a large detached rented house with his partner and three young children after being released from an 18-year prison sentence over the Securitas raid when he was shot.
In her sentencing remarks, Judge Sarah Whitehouse KC said she believed the three men convicted “were motivated by a promise of financial gain”, but she had “no doubt” others were involved.
The day before the shooting, Kelly and Louis Ahearne used a rented car to carry out a burglary in Kent, accessing the gated community by pretending to be police officers.
A month before that, Kelly and the Ahearnes stole more than $3.5m (£2.78m) worth of Ming dynasty antiques from the Museum of Far Eastern Arts in Geneva, for which the brothers had been jailed in Switzerland.
Kelly is also wanted in Japan over the robbery of a Tokyo jewellery store in 2015 in which a security guard was punched in the face – but extradition proceedings have been put on hold while he serves his sentence.