Sage proposes £350m tech fund to enhance growth potential

Sage, the software giant, is urging the government to launch a £350million fund to incentivize small firms to invest in new technology. The company believes that if smaller businesses adopt time-saving tech such as digital invoicing, it could potentially add £230billion to the economy each year and boost productivity.

Sage proposes the implementation of a one-year Small Business Digital Growth Fund, similar to a scheme in Australia, that would allow businesses to purchase software and offset the cost against their corporation tax bill. The estimated cost for this fund ranges between £300million to £350million according to the FTSE 100 company.

Claim: Sage says £230billion could be added to the economy each year if smaller businesses adopted time-saving tech such as digital invoicing, as it would make them more productive

The proposed fund is part of a strategy presented by Sage to senior politicians, highlighting the risk of the UK falling behind other technologically advanced nations. Steve Hare, CEO of Sage, emphasized the importance of small and mid-sized businesses in driving economic growth and emphasized the need for government action in order for Britain to thrive.

IBM’s UK-based CEO, Nicola Hodson, echoed these sentiments, stating that small and medium-sized companies are crucial to the UK economy and urged them to adopt transformative technologies for sustained growth.