Britain needs to address its lack of tech champions

If science and technology are to drive the UK’s industrial strategy (Report, September 28), business secretary Alok Sharma’s white paper in preparation will have to address one glaring problem. The UK, as currently reflected by the FTSE 100 index, has next to no presence in the key growth area of information technology. This is in contrast to the US, where IT comprises 22 per cent of the S&P. IT comprises 11 per cent of Japan’s main index and 6 per cent for Europe ex-UK, against a world average of 17 per cent.

This key shortfall has resulted in the FTSE being the worst performing of the world’s major indices over five years (effectively since the Brexit vote) and in the year to date (since the Covid-19 pandemic).

While UK universities and research institutes are of world-class stature, it is all the more problematic that there is no corporate vehicle to deliver the benefits to the UK and export markets.

The laissez-faire policies of successive governments and instances of egregious management failings have brought the UK to this sorry state.

Clearly it is simply not possible to conjure FTSE 100 companies from thin air. But standing idly by while one obvious candidate, Arm, is swapped between foreign owners is tantamount to neglect of the national interest.

Without an intervention of unusual determination, the UK will continue to suffer its current underperformance relative to international peers.?