How America plunders Britain’s tech economy

The UK government tells a confident story about Britain’s tech business acumen. In one 2023 example, a press release from Rishi Sunak invited investment in the tech sector, calling the UK an ‘island of innovation’. In it, he explained that the UK corporation tax rate was the lowest in the G7 and that the UK capital allowance for investors was ‘one of the most generous’ in the OECD. Even better, the UK Treasury offered ‘full-expensing for qualifying business investments in more plant and machinery for three years – a tax cut worth £27 billion’. This is generous, and notably so when in 2023 the UK spent more than £100 billion servicing the interest on state debts. And, viewed in a certain light, the generosity has got results. The PM also claimed that the UK has created 134 ‘tech unicorns’ – companies with a valuation of more than $1 billion.