New rules and regulations will help technology start-ups grow their businesses and recruit more staff, the Government has revealed.

Known as the Plan for Digital Regulation, the new framework will reduce red tape across the sector, allowing entrepreneurs to thrive in an independent, global Britain.
According to the latest statistics, the digital and tech industries contributed over £151 billion to the UK economy in 2019, while also attracting some £11.2 billion in venture capital funding in 2020 – more than France and Germany combined. The sector also employs two million people.
But experts say current legislation restricts growth, with excessive red tape blocking innovation and rapid advancements in technology.
The new plan, however, aims to “cut down on cumbersome and confusing policy so businesses are freed to come up with new ideas, grow their firms and create new jobs and prosperity”.
This will be achieved through three “guiding principles”, summarised below:

• Actively promote innovation

By backing innovation and removing unnecessary regulation and burdens.

• Achieve ‘forward-looking and coherent outcomes’

By ensuring that new regulations complement, rather than contradict, existing and planned legislation where digital technology has transformed traditional sectors.

• Exploit opportunities and address challenges in the international arena

By considering international dynamics, such as trade deals, expected future agreements, and the impact of regulations developed by other nations.
Commenting on the new plan, Digital Secretary Oliver Dowden said: “Our principles-based approach will ensure innovation is embedded in any new regulation, and we will look to reduce red tape to enable our vibrant tech sector to thrive.”
Welcoming the reforms, techUK CEO Julian David added: “Creating a framework for digital regulation that promotes innovation is a global challenge. If the UK can get this right, we can drive discussions at the international level and build on our reputation as a leading digital economy.
“The Plan for Digital Regulation is a strong start and shows the government’s commitment to creating a coordinated, proportionate and innovation-focused regulatory system.”
For more information on the Plan for Digital Regulation, please click here.
For help and advice with related matters, please get in touch with our expert team today.