Report: North-South IT divide needs addressing

A study by think tank Policy Exchange claims the incessant 'brain drain' from the north means large swathes of the UK fail to benefit from thriving tech sector

The government needs to invest more to ensure the north of the country to ensure all parts of the UK benefit from the growing technology sector.

This is according to a report from think tank Policy Exchange that claims the UK is already benefitting from the growth in the technology sector, employing 1.2 million people.

The sector also received more equity investment than any other sector in the last three years – but the benefits of this investment are mainly being felt in and around London and the South East.

According to the report, the government needs to put ‘rocket boosters’ under the idea of directly elected mayors to ensure the country as a whole can reap the benefits of IT in the future, rather than allowing a ‘brain drain’ from northern cities down to the south.

In addition it suggests universities should allow students to retain IP on new ideas, and that better road, rail and air connections are needed to make the most of northern towns and cities.

Eddie Copeland, author of the report, said: “The technology industry is bringing considerable benefits to the UK economy but it is failing to live up to the Chancellor’s wish for it to benefit every corner of the country. The question for policymakers is how to extend the sector’s benefits to other regions, especially England’s northern cities so we can create ‘Silicon Sheffield’ or ‘Silicon Sunderland’.

“The government does not need to subsidise the cost of doing business in the North – it is already significantly cheaper than London. What technology businesses do want is local political leadership with the power and accountability to be responsive to their needs. It is time for the government to put rocket boosters under the idea of directly elected Mayors. They are best suited to understanding the distinctive challenges facing their locality.”