According to Innovation News Network, the House of Lords Science and Technology Committee has declared the UK’s failure to scale science and technology companies a full-blown crisis in their newly published report titled “Bleeding to Death: The Science and Technology Growth Emergency.” Committee Chair Lord Mair stated the UK’s “inability to retain more of the economic benefits of its science and technology R&D endeavour is a fatal flaw in any growth strategy,” pointing to sluggish productivity growth and stagnant real wages since the global financial crisis. The report demands urgent action from Prime Minister Rishi Sunak and Chancellor Jeremy Hunt, warning that without radical reform, the government risks acting too late to stop the economic bleeding. Key recommendations include creating a National Council for Science, Technology and Growth, reforming counterproductive visa policies, and dramatically increasing pension fund investment in UK tech companies.
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The real problem
Here’s the thing – this isn’t just another government report gathering dust. The Lords committee is basically saying the UK has become really good at starting science and tech companies but absolutely terrible at keeping them. We’re talking about a country that produces world-class research and then watches as those companies either get bought by foreign competitors or move overseas because they can’t get funding here. It’s like having a championship farm system but never being able to afford to keep your star players.
Visa madness
One of the most frustrating parts of this whole situation? The UK is actively making it harder for the very people it needs. The committee calls out “costly visa barriers” that deter scientists and entrepreneurs from coming here. When you’re competing globally for talent, you can’t be rolling out red tape instead of the red carpet. I mean, think about it – we’re trying to build a science superpower while making it difficult for scientists to actually work here. Does that make any sense to you?
Pension fund paradox
Now here’s where it gets really interesting. The report highlights that UK pension funds have dramatically reduced their investment in domestic companies over recent decades. So British savers’ money isn’t funding British innovation – it’s going everywhere except here. The committee wants to push the Mansion House Reforms further and faster, even suggesting things like clawbacks on tax reliefs to force pension funds to invest in UK tech. That’s pretty radical stuff, but maybe radical is what we need.
What happens next
So will anything actually change? The committee says there’s “enormous potential” if the Prime Minister and Chancellor act decisively. They’re calling for consolidating public investment bodies like Innovate UK and the British Business Bank into something that can compete with sovereign wealth funds. They want procurement reforms that actually give contracts to UK startups. But let’s be real – we’ve seen reports like this before. The question isn’t whether the solutions exist, it’s whether the political will does. With an election looming, this could either become a key battleground or get lost in the political noise. And honestly, the UK economy can’t afford more delays.
