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Growing up in South Wales, I was fortunate enough to be part of the Dynamo Programme, where local entrepreneurs visited our schools to share their journeys, inspiring us to dream of an innovation-driven future. This early exposure instilled in me a passion for entrepreneurship, leading to the 2019 creation of Yepic AI. My company’s mission is simple: to revolutionise video communication through AI-driven solutions, allowing businesses to create real-time video and asynchronous avatars for anything from personalised marketing to training materials across all sectors.
So, when Labour revealed it’s ambitious 50-point AI Opportunities Action Plan in January this year, my ears naturally pricked up. The promise of a twenty-fold increase in national computing power, the creation of AI Growth Zones and the establishment of a National Data Library – consisting of anonymised public data that businesses can use to train new AI models – all seemed like the right steps forward.
There’s just one problem. Whilst such commitment to fostering innovation is certainly commendable, Britian is still a far cry from the tech-first future I’d envisaged. Not only is the country now rife with crime, offering little opportunity to its youth, but it’s also home to rising unemployment, a dwindling economy and underwhelming support for those venturing into business alone. And, in this environment, which lacks a socio-economic culture strong enough to nurture and retain new entrepreneurial talent, the initiatives put forward by Labour will simply fold.
Holding onto the UK’s greatest
Over the past year alone, 13,000 millionaires – more than half of whom are business owners, left the UK, with the UBS Global Wealth Report predicting a 17% decline in UK millionaires by 2028 as a result. This growing dearth of wealth generation is a huge concern, considering that business creators capable of transformative innovation are uprooting and taking their expertise, talent, and opportunities for leadership and growth elsewhere.
Rather than continuing to promote conditions that drive entrepreneurs to do this – the government must therefore refocus its efforts on encouraging emerging AI players to stay – not only improving conditions within general society but taking a closer look at the financial impositions placed upon entrepreneurship as well. This is vital, considering the role that SMEs play in the UK economy, with small- and medium-sized enterprises employing an impressive 61% of our workforce and generating a huge £1.7 trillion in revenue for the UK economy just in the last year.
With 39,905 medium-sized businesses representing around 50,0000 entrepreneurs who contribute almost a trillion pounds and 3.7 million jobs annually to the country and economy, we simply cannot afford to lose those willing to launch into new tech business centred around a field as enormous as AI. So, why continue to impose such restrictive tax policies and regulatory burdens?
Those capable of creating successful AI technologies, which could drive industry leadership for the UK, will be put off by the 2026 tax reforms, which include increases in Business Asset Disposal Relief (BADR) tax rates. This will only contribute to dwindling process, not only creating a dearth of funding but also resulting in an innovation brain drain, with ideas and inspiration going abroad.
Building a superhero economy
It’s a struggle we’ve known only too well at Yepic AI. Scaling an innovative tech company is difficult at any time, let alone in the current climate. So, whilst our AI-driven solutions may have found their place within the e-learning, e-commerce and real-estate markets, for instance, we’re still battling against increasingly complex tax liabilities and a complex regulatory landscape that – for those just starting out – can be a significant hurdle.
If the government is serious about positioning the UK as a global AI leader, then it needs to do more – not only investing in technological infrastructure but also committing to creating a conducive environment for entrepreneurs to thrive in. This means reconsidering tax policies that disincentivise launches, doing more to celebrate successes and reducing the red tape. Likewise, it calls for the creation of a nationwide entrepreneurship culture, where small-scale innovation is bolstered by a nation equally renowned for its technical skills.
By equally investing in the next generation of tech skills and AI talent, Labour can provide small-scale entrepreneurs with the people and skills they need to get their ideas off the ground, all whilst improving conditions that will encourage young companies to stay. Without skilled people, it would be impossible for even the most incredible of AI businesses to turn the UK into a superpower – so it’s time to start building a superhero pool of talent to support our ambition. More young people in suitable training not only supports leaders but also reduces unemployment and the number of young people falling into poverty-driven crime, creating a positive cycle of growth and improvement for Britain – a new Britain that AI leaders will no longer want to leave.
Doing more for success
Ultimately, reversing the 2026 tax reforms and offering financial support to small business owners is vital to ensure any AI growth Labour secures survives for more than one generation. The more competitive tax incentives we can offer entrepreneurs, the better, focussing – not just on data libraries but on fostering the right innovation environment. We need to make Britain the best place in the world for startups to launch, rather than just expecting this to happen.
The government must likewise recognise that tech experts aren’t necessarily experts in business and law, either, so the less red tape for those getting started, the better. Then, it’s time to invest – not just in tech but in AI education and training to create a country worth of a leading high-tech economy, where people are equipped with skills and unafraid to step outdoors. It’s all about inspiring others to create wealth, not fear or resent it – as is unfortunately the case in the US right now.
Our ambition to lead in AI is admirable, but this must be supported by policies that back the very people driving the change. The AI plan is a great first step but by investing and strategising more, we’ll be much closer to turning Labour’s ambitious AI aspirations into reality, not driving valuable contributors away, but driving considerable societal and economic growth through innovation instead.
