The UK's tech sector has been thrown a lifeline by Business Secretary Kemi Badenoch, who has vowed to shield British companies from foreign takeovers. Her commitment comes as the government outlines its plans to support domestic technology firms, including providing funding and tax breaks to drive innovation and growth.
At the heart of this effort is the government's renewed determination to strengthen its powers to block foreign acquisitions of British businesses. Badenoch has made it clear that she would not hesitate to exercise her veto if a major takeover deal came before her desk, indicating a significant escalation in the government's efforts to protect UK tech firms.
The business secretary's comments have been met with a mixed reaction from both sides of the political divide. While some business leaders have praised the government's commitment to supporting British businesses, others have highlighted the need for action rather than just words. Shadow Business Secretary Peter Kyle accused the government of having a 'patchy' record on business takeovers, pointing out that several major deals have slipped through the net in recent years.
The government's plans to support domestic tech firms are part of a broader effort to boost innovation and growth in the sector. The measures include funding for research and development, as well as tax breaks to encourage investment in British technology companies. However, critics argue that these efforts will be undermined if the government fails to effectively block foreign takeovers.