Petroc Taylor
Research expert covering global developments in the use of data
Digital economy in the United Kingdom (UK) - statistics & facts
The British government regards the UK’s digital sector as crucial in securing economic growth in the post-Brexit era. The UK has looked to attract digital investment on the strength of its infrastructure, skilled workforce, and leading institutions, which include some of the world’s most renowned universities, as well as the financial powerhouse of London. Government ministers have sought to nurture several key emerging sub-sectors, notably artificial intelligence (AI) and cybersecurity. However, the UK faces the challenge of fostering an open, innovative environment while delivering on safety and privacy commitments. The UK ranked 20th in a 2023 ranking of 64 nations by digital competitiveness, with the country’s regulatory framework one of several factors keeping it from the top ten.
AI will continue to dominate the UK’s digital agenda, with the industry expected to be worth more than 20 billion British pounds by 2030 . The UK’s 2023 AI Safety Summit was intended to position the country as a global leader in AI governance, but skepticism remains over whether the country will strike the correct balance between innovation and regulation.
The UK digital sector adds 160 billion British pounds in GVA
The UK Department for Science, Innovation and Technology (DIST) has been responsible for driving digital development since its formation in 2023. The department estimated that the sector had contributed almost 160 billion British pounds in gross value added (GVA) in 2023, up around 0.6 percent on the previous year, and accounting for approximately 6.5 percent of total UK GVA. The computer programming, consultancy, and related activities sub-sector has accounted for the greatest share of GVA in recent years, despite the number of businesses active in the sector having fallen below 125,000. Computer programming employees also enjoyed some of the highest earnings in the sector, ranking second only to software publishing.Digital infrastructure will underpin growth
The development of digital infrastructure is central to the UK’s digital strategy, with the expansion of next-generation telecommunications networks a top priority. As part of Project Gigabit, the government has set the target of bringing gigabit internet to at least 85 percent of premises by 2025, and 99 percent by the end of the decade. Fiber networks are playing a key role in achieving this, with fiber-to-the-premises (FTTP) coverage having surpassed 60 percent in each of the UK’s four nations. While fiber adoption has made an impact on the average download speeds nationwide, regional leaders have criticized the slow rollout outside urban centers. Government ministers are looking to fixed wireless access to bridge the gap in remote communities, while also looking ahead to satellite services.AI will continue to dominate the UK’s digital agenda, with the industry expected to be worth more than 20 billion British pounds by 2030 . The UK’s 2023 AI Safety Summit was intended to position the country as a global leader in AI governance, but skepticism remains over whether the country will strike the correct balance between innovation and regulation.
