Hi Tech sectors set to drive UK growth

AI, Fintech and Clean Energy sectors set to boom

The announcement by the Labour party regarding increasing investment into AI will be welcome news for the industry. The AI Opportunities Action Plan is backed by leading tech firms, who have cumulatively committed £14bn towards various projects, where key recommendations being implemented include:

  • The UK to invest into its own proprietary supercomputing

  • AI Growth Zones to be created, the first to be at Culham, the HQ of the UK Atomic Energy Authority

  • Streamline the visa application process for companies wanting to recruit skilled personnel

Similarly, with over 1,300 AI companies already established in London The UK tech sector overall is now worth £1 trillion and with VC firms are scaling up their funds, indicating that 2025 is set to be a bumper year for investment as UK-based venture capital firms raised $11.3bn in dry powder, a 59% increase from last year’s $7.1 billion. The Fintech sector is set to continuing growing, even as funding slows down into the sector. The success of fintechs in scaling up internationally is starting to pay dividends and the growth of unicorns in the sector is noteworthy. The Banking sector has had to transform itself to compete and certain incumbents are now questioning if the UK is viable as a result, Santander the latest to do so.

The Government’s commitment to Clean Energy is likely to be challenging at times. Oil & Gas fields which are returning diminishing yields are being decommissioned ahead of schedule, while renewable energy is notoriously unstable which has the potential to cause a short term premium on energy prices in the UK. Nonetheless, the UK pushes to lead the way in Nuclear small module reactors. A decision will be made in the spring budget as to what happens next here, but expect the UK Government to make a commitment to SMR. Rolls Royce are a British company leading the way globally here and according to various sources, are up to 18 months ahead of their competitors and winning a contract with the Government should lead to an explosion in hiring across the midlands.

Interestingly, this is a real opportunity for the UK to lead globally. With the USA likely to have a drilling led strategy under Trump, which will involve a new phase of fracking along with other traditional sources, whilst China gorges on cheap Russian oil & gas and the EU remains in political paralysis, none are placing the urgent focus on SMR that the UK is. Equally for the leaders go the spoils. If the UK can act as a showcase for how SMRs can meet the power requirements of a G7 country, expect other countries to follow quickly and the expertise of British businesses who can be involved in this transformation in the UK, will become a premium commodity.

The Labour Party is also likely to have a more nuanced approach to enabling businesses to source the talent they need and have already announced plans to streamline the visa application process for companies wanting to attract skilled personnel into the UK. Given the skill shortages in the country, this is a necessary step. The UK is not producing sufficient STEM graduates to meet the demands of the workforce, and whilst the Government can work to change that, the fact remains.

So what does all this mean?

We are forecasting for 2025 to be a bumper year for the technology industry. Whilst vacancy volumes dropped off in December, our expectation is that as the impact of the budget is absorbed, and new investment is implemented, vacancies start to rise to the levels seen in Q1 2023 where as the tech industry continues oto expand, incumbents will be disrupted. The Energy industry is likely to be at the centre of the maelstrom this year, due to the political pressure to move to cleantech and electric, where this combined with the power demands of building AI centres, is likely to need a gargantuan effort to transform the industry involving Corporate Enterprise, Innovation & Entrepreneurialism, Government and Venture Capital.

This is a part of what we will be reviewing on our annual summit, which will be analysing all the industries within the UK economy and how they are performing. The session will be moderated by Ann Swain, Chief Executive of APSCo, and feature insights from Kalpesh Baxi, Partner at Baxfield and former SThree executive, as well as Matt Gallivan, Head of Sales at JobAdder.

This event is a must-attend for recruitment professionals looking to analyze 2024 trends and gain actionable insights for the year ahead. Spaces are limited, so we encourage you to register now to secure your place!


The data referenced above has been sourced from Vacancy Analytics, a cutting-edge Business Intelligence tool that tracks recruitment industry trends and identifies emerging hotspots. With 17 years of experience, we have a deep understanding of market activities in the UK and globally.

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