Tag Archives: technology

Will the Chancellor’s ‘securonomics’ strategy drive growth in a new age of instability?

Throughout her time as Chancellor, Rachel Reeves has insisted that the government’s main objective is to facilitate economic growth. During her Mais Lecture on 17 March 2026, Reeves set out a vision for long-term economic growth, using the speech as an opportunity to highlight the ways in which the government will overcome challenges such as fiscal constraints, low productivity, and global instability.

Reeves reaffirmed her belief in ‘securonomics’, an economic strategy where the government helps individuals and businesses gain economic security by investing strategically in sectors like technology, financial services, science and infrastructure. Reeves emphasised that the government needed to play a more active role in guiding investment given the impact of the middle east conflict on the global economy. She stated that market disruptions caused by the COVID-19 pandemic, the Ukraine-Russia war, and the US-Israel war with Iran meant that ‘globalisation, as we once knew it, is dead’. As a result, the government would need to find balance between building resilient public services and facilitating private sector growth, as well as a balance between importing goods and products from other countries and bolstering domestic supply chains.

A central theme of the lecture was the ‘big choices’ the government is making to shape the UK economy over the next decade. The Chancellor placed significant emphasis on securing closer ties with the EU, arguing that it was essential for future growth. She stated that a closer alignment could reduce trade barriers. Reeves acknowledged that Brexit has had a negative impact on the UK economy, a shift from previous years where she had shied away from being overtly critical of Brexit. Reeves stopped short of expressing support for rejoining the EU, instead stating that the UK could find greater alignment with Brussels on policy, while still operating outside the EU’s formal structures. If the government is successful in forming a closer relationship with the EU, she remarked, it could ease the administrative and customs costs for businesses importing from and exporting to the European Union.

While business owners will be pleased to see the Chancellor discussing reducing trade barriers with the EU, Reeves’ attempt to set out a vision for regulatory alignment with the EU may be more concerning for businesses. Reeves said that the government would be prepared to align with EU regulation where it is in the ‘national interest’ to do so, and would maintain regulatory autonomy in sectors with strategic importance for the UK. However, this ignores the post-Brexit reality – the UK and the EU are growing apart on their regulatory goals.

Recent UK governments have increasingly highlighted their ability to implement more flexible approaches to regulation than the EU as a selling point to attract global business. Reeves herself wrote to 17 regulatory bodies in January 2025 urging them to ‘tear down regulatory barriers’ and focus on opportunities to facilitate economic growth. For example, Reeves has implored the Financial Conduct Authority to reduce ‘anti-risk’ regulations and improve competitiveness in financial services sub-sectors, including consumer finance. This is a significant contrast from the EU’s approach, which is more precautionary and is unlikely to result in the reduction of detailed consumer protection rules. If the government does pursue regulatory alignment with the EU in financial services, it would need to consider the impact on regulations, such as affordability assessments and disclosure requirements. Altering these regulations could increase compliance costs for businesses and would likely upset management teams that have spent the last five years adapting to the UK’s Consumer Duty.

The Chancellor also argued that technological advancement is critical to boosting productivity, creating jobs, and positioning the UK as a global leader in emerging industries. As part of this plan, Reeves said the government will support regional growth through fiscal devolution that will empower local leaders, and will also create sector hubs in different cities. This includes establishing Leeds’ Northern Square Mile as a destination for global financial services. To support regional growth the government will create new city-level investment funds and allow regions to retain more of the tax revenues they generate, with the aim of stimulating local investment and reducing reliance on central government.

Reeves commitment to supporting technological innovation in financial services, as well as facilitating growth across the country is likely to provide opportunities to businesses in emerging financial services sub-sectors that harness AI and machine learning. Tech-focused sub-sectors, such as embedded finance, could benefit from these plans, including businesses providing payments and money transfers services, peer-to-peer lending services, and insurtech services. Investors focused on these sectors should monitor the government’s progress in establishing finance or technology sector hubs in various cities across the UK, as well as any funding announcements relating to these sectors.

The Mais Lecture reinforced a consistent economic strategy centred on stability, investment, and reform. While the lecture did not introduce any new policies, it did clarify the government’s long-term economic goals and Reeves’ commitment to ‘securonomics’. However, Reeves will need to use the coming months to share further details on the extent to which she wants key sectors within the government’s industrial strategy, such as the financial services and technology sectors, to be aligned with the EU on regulation. The Chancellor is ‘optimistic’ about the government’s ability to drive investment and growth but will need support from the business community to do so. Investors and businesses should consider potential scenarios where they can support the government to ensure that policy, funding and regulation is geared towards creating the best possible environment for growth in the UK.

If you would like to discuss the Chancellor’s growth strategy and its impact on businesses in more detail, please get in touch with joshua@gkstrategy.com.

GK & Anchor Policy Spotlight: Emerging Regulatory Markets

The next decade and beyond will be defined by global challenges ranging from climate change and food security to geopolitical instability and competition for resources. Governments around the world will be forced to address these at pace, but many of the solutions will depend on technological advances and scientific discoveries that are only just emerging.

Curiosity has always been in GK’s DNA and over the last year we have dedicated considerable time to understanding and engaging with the emerging industrial sectors of the future. Ranging from technological developments in already highly regulated sectors to the sectors that are just emerging as future economic powerhouses, GK has put them under the microscope to unpick the political, policy and regulatory opportunities and challenges on the horizon.

This report is an introduction of that thinking to you. We know our investment community is keen to understand the risks and opportunities in these spaces to stay ahead of competitors in origination strategies, and most importantly, to invest for the future. With the decades of combined experience that informs our counsel, we pride ourselves on seeing the things that others don’t. Our team of consultants in the UK, Europe and the US is uniquely positioned to give a truly global perspective on understanding and growing the future sectors of the global economy.

The Warm Homes Plan and the government’s green agenda

GK’s Hugo Tuckett examines the government’s publication of its Warm Homes Plan and what it means for the government’s green agenda

January 2026 saw the publication of the government’s long-awaited Warm Homes Plan. The plan, which is backed by £15 billion of funding and was originally due for publication in 2025, represents the sum of the measures that the government believes will deliver on its commitment to lower household energy bills by £300 over the course of this parliament (2024-29). It is also one of the government’s most entrenched policies, dating back to Labour’s time in opposition when Shadow Chancellor of the Exchequer Rachel Reeves announced in 2021 that a future Labour government would deliver billions of pounds worth of new funding to support upgrades to the UK’s green infrastructure.

The Warm Homes Plan seeks to deliver a significant expansion of solar panels and heat pumps, marking a departure from previous efforts to improve the insulation of homes. Despite its original billing to improve households’ energy efficiency, the final publication of the plan sets out the energy secretary Ed Miliband’s ambition to deliver a ‘rooftop revolution’ and includes a range of measures designed to support a much greater uptake of solar panels. This has led to some concern amongst charity and industry groups who have warned that shifting to clean heat and electricity generation (including heat pumps and solar panels) before dealing with the scale of draughty homes is only going to lead to an increase in bills in the short term. It does though demonstrate the government’s shift in approach from seeking to reduce household energy consumption to increasing energy generation from renewable sources.

Ministers are eager for households to adopt a range of green measures to substantially lower bills and, in some cases, deliver ‘zero-bill’ households. The government’s thesis is that investing in the roll out of new technologies now, including heat pumps, will drive down costs further in the medium-to-long term. It also becomes much cheaper and more efficient to use a heat pump when combined with battery storage systems and solar panels. Critics will say that the government should be thinking much more radically about how it plans to rebalance the levies on energy, so that it can bring down the cost of electricity for all if it really wants to see people make the shift from gas to electricity. Aside from the government reiterating its decision to remove £150 worth of levies from energy bills through the abolition of the Energy Company Obligation (ECO), this plan does not tackle that more intractable problem.

The funding included in the plan is predominantly aimed at low-income households, but there is some financial support available to all homes. The plan will administer £4.4 billion in grants to low income households and social landlords. This will include fully funded upgrade schemes, including solar and heat pumps, depending on the assessment of the building. It will also establish a £5.3 billion Warm Homes Fund which will be available to all households. This includes £2 billion in low-and-no-interest consumer loans and £2.7 billion for innovative finance products in the home upgrade system. The government aims to upgrade five million homes by 2030 and lift one million homes out of fuel poverty through the plan, which will be overseen by a new government body, the Warm Homes Agency.

The publication of the plan is a significant moment for the government and for energy secretary Ed Miliband. Despite previous climbdowns on the amount of funding that would be made available to support the government’s green agenda, Miliband has deftly navigated both HM Treasury and the Cabinet to retain a sizeable portion of funding to deliver on his ambitions in the sector when other departments are experiencing real-terms cuts. As the 2029 general election approaches, there will be real pressure on the Department for Energy Security and Net Zero to deliver on the ambitions of the plan, which sits in an area of public policy where the government will be hoping to draw a clear dividing line with Reform UK. The government has spent a lot of its first 18 months in power talking up its efforts to boost the UK’s green credentials and lower household energy bills – now it’s all about delivery.

Cleared for take-off? The policies shaping the UK drone industry

The government has set itself the ambitious goal for becoming the fastest growing economy in the G7. This lofty ambition sits at the heart of the government’s agenda and is central to its industrial strategy – a 10-year plan to increase business investment in the industries of the future. The drones sector has been identified as a frontier industry, with the government clearing a flightpath for the UK to be a world leader in drone innovation and technologies.

Driving this move is the extraordinary economic potential of drones. A recent PwC report states that the sector could contribute £45 billion to the UK economy and support 650,000 jobs by 2030. Further analysis undertaken by Frazer-Nash consultancy for the government suggests that with public support and a shared strategy and ambition between government and industry, the sector could have contributed £103 billion by 2050. Together, these findings demonstrate how collaboration between government and industry can lead to a thriving drones sector which can drive growth and innovation across the UK.

Regulatory challenges

For this growth to be unlocked, the government must work to address regulatory challenges that constrain innovation. Across government, companies face a range of overlapping rules that can slow commercial deployment and limit investment. One of the largest constraints on the sector is the requirement to keep the drone within the line of sight of the operator. Additional health and safety regulations enforced by the Civil Aviation Authority (CAA) also prohibit drones being flown within a 50m radius of people. This constrains the range of operations drones can perform, limiting their use in many areas such as delivery, infrastructure inspection, and large-scale surveying, particularly in urban areas.

The Health and Safety Executive (HSE) also limits the growth of drones operating in the agricultural sector, with the HSE requiring companies to get approval for almost all aerial spraying. The HSE states that there is a 52-week processing time for drone applications, which will inevitably undermine the innovation and adoption of drones in the agricultural sector.

All these affected areas are where drone technology offers incredible commercial potential, so overcoming these regulatory barriers will be key for businesses looking to unlock growth in the drones sector.

These challenges are not insurmountable and government and industry collaboration is already underway to tackle them. The Regulatory Innovation Office (RIO) is leading a series of pro-innovation reforms for the drones sector, including the introduction of a single, standard risk assessment process to cut approval times for complex drone operations. They are also working on expanding the CAA’s atypical air environment policy, which enables the use of drones Beyond Visual Line of Sight (BVLOS), with the ROI providing £8.9 million in funding for innovative projects that will test the effects of new BVLOS standards. The ROI has also worked with the HSE to make it legal for drones to spray slug pellets, which is a major step forward for agricultural drones businesses.

Public concerns

Drones businesses also face challenges of public perception. The research done by Frazer-Nash consultancy estimated that without public support, the size of the sector will be £65 billion by 2050. That represents a £38 billion reduction in the sector compared to the scenario with public support. Given the incredible economic value that lies in public support, addressing public concerns, such as the use of drones for criminal activities, are of great importance to the sector and government to ensure businesses reach their full potential.

The government is already thinking about innovative solutions to the public perception challenge. In November 2025, the government launched a technology challenge which will encourage industry to develop innovative systems capable of detecting drones designed by criminals to evade current detection methods. If successful, this challenge will help the government intercept drugs being delivered by drones into prisons.

The government’s willingness to cut red tape and find innovative solutions to the challenges facing the sector creates opportunity for the sector. However, it remains essential for companies to engage with the government, both to push further on reducing overly prohibitive regulation and to address public concerns surrounding drone safety. By doing so, businesses can play a central role in shaping a regulatory landscape that supports innovation, builds public trust, and cements the UK’s position as a global leader in drone technology.

If you’d like to discuss drones and the wider political landscape in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com

Sky’s the limit: Why agri-tech should engage on drone law reform

Drones and autonomous flight technologies are set to revolutionise how we travel, deliver goods and produce food, and the government has taken note. As part of a comprehensive three-year review into the regulatory framework of autonomous flight and the use of drones, the Law Commission has launched a second consultation. Its three-year review is nearing completion with recommendations expected to be published by early 2026 and will shape how this fast-moving sector evolves. For innovators in agri-tech and beyond, the opportunity to help design the rules that will govern a sky filled with commercial drones is now.

Flying free from EU constraints

Legislative agility to facilitate innovation is the ambition and ties into the government’s wider economic growth agenda. Aviation law in the UK is prescriptive and duly geared towards the passenger aviation sector. With the UK no longer bound by EU aviation rules, policymakers can now craft a more bespoke, agile regulatory environment that encourages experimentation, accelerates innovation and attracts investment.

However, the government has identified a possible post-Brexit dividend as the current regulatory regime is largely a carryover from current EU law. This presents a unique opportunity to break away from legacy constraints and design a tailored regime for UK-specific innovations and ambitions. A more flexible regime could fast-track the safe deployment of cutting-edge drone technology and give UK-based companies a first-mover advantage, enabling them to export innovations globally.

Drones on farms: Unlocking agri-tech potential

Commercial applications of drone technology are wide ranging. For the food and agriculture sectors alone, drones could revolutionise farming operations:

Precision agriculture from monitoring crops based on thermal sensors to scanning fields and accurately predicting crop yields.
Agricultural sprays deploying pesticides, fertilisers and herbicides thereby reducing labour costs, use of chemicals and their environmental impacts, and identifying diseases or pests to prevent wider outbreaks.
Irrigation management by identifying drainage issues to drought-stressed areas and enabling the more efficient use of water and real-time crop water requirements.
Crop insurance and assessment by providing accurate, unbiased and detailed imagery required by insurers to speed up claims processes.
Harvesting assistance by providing crop maturity assessments to more effectively plan harvesting schedules and boosting the quality of crop yields.
Forestry and orchard management by measuring canopy growth, quantifying tree populations and aiding pruning schedules.

The economic case for drone-powered agriculture

There are many economic benefits – from reduced labour and input costs through more precise allocation of resources, to increasing crop yields via data driven decision making. Lower chemical and water usage not only cuts costs but also supports environmental sustainability. For businesses able to make the capital investment, drone technology is set to become a core component of modern agricultural management, policymakers should be engaged on this.

Government support signals lift-off

There is clear momentum in government to embrace drone technologies. The aviation minister has confirmed £20 million in funding for new flight technologies, including £5m earmarked for the Future of Flight Challenge. These initiatives could create government-backed testbeds for agri-tech solutions and help de-risk businesses ready for investment. For innovators in the sector, this is a moment to engage directly with policymakers, to shape the regulatory framework and unlock the commercial potential of drone led farming. The Law Commission’s second consultation is open until 18 July 2025, and alongside a wider engagement programme, this is a key opportunity to have your voice heard and set the direction of travel for the sector.

Disrupted Global Supply Chains: Is a Strategic Shift on the Horizon?

GK Adviser Felix Griffin looks at the forces disrupting global supply chains and explores how industries and governments are adapting to this ‘new normal.’

Beyond shortages and delays: the existential challenges facing global supply chains

The intricate network of global supply chains currently faces a confluence of unprecedented challenges. The initial shockwaves of the COVID-19 pandemic exposed vulnerabilities in meticulously planned production and transportation systems. While there were tentative signs of recovery in 2023, geopolitical developments, like the war in Ukraine and heightening tensions in the Middle East, have exacerbated disruptions, impacting the flow of critical resources. This is compounded by the growing impacts of climate change, which manifests in extreme weather events that disrupt production and transportation, highlighting the limitations of just-in-time manufacturing models. Inflationary pressures are squeezing margins for businesses and impacting consumer spending due to rising costs of raw materials and energy. Labour shortages in many industries add another layer of complexity, creating bottlenecks and hindering smooth operations.

The consequences of these pressures are far-reaching. Consumers face significant price hikes across various goods, driven in part by supply chain disruptions. Shortages of certain products are becoming commonplace, and even when available, delivery times have significantly increased. Businesses are caught in a precarious position, struggling to meet demand while grappling with rising costs and the potential for product scarcity.

The question remains: are these disruptions a temporary blip or a sign of a new normal? Experts suggest that we are entering a new era for global supply chains, one that necessitates a paradigm shift towards increased resilience. Businesses need to adapt and become more agile to navigate this increasingly complex landscape. Diversifying their supplier base and production locations can mitigate risk by reducing reliance on any single geographic region. Nearshoring, the practice of relocating production closer to consumer markets, can lessen dependence on long-distance transportation, which is vulnerable to disruptions and rising fuel costs. Technological advancements offer a compelling solution where they can be realised. Investments in automation and data analytics can enhance efficiency, transparency, and even enable real-time adjustments to production based on fluctuating demand.

Governments themselves play a crucial role in ensuring supply chain integrity. Strengthening import/export controls and fostering domestic production of critical goods can lessen reliance on potentially volatile regions. Fostering international cooperation on supply chain diversification and transparency is proving to mitigate risks and ensure access to essential resources during periods of heightened tension. Echoing the concerns of Deputy Prime Minister Oliver Dowden, this new era necessitates a reassessment of national security risks embedded within globalised supply chains. Dowden aptly pointed out, in a recent address at Chatham House, that while globalisation has brought economic benefits, it has also exposed vulnerabilities. The recent actions announced by the UK government, including a review of Outward Direct Investment (ODI) risks and an update to the National Security and Investment (NSI) Act, serve as a model for other nations. These steps acknowledge the potential for exploitation by hostile actors, as highlighted by Russia’s manipulation of gas prices and China’s use of economic coercion. By working collaboratively with the private sector, governments can play a crucial role in building a more resilient and secure global supply chain network for the future.

Building a more resilient and adaptable supply chain network is not without its challenges. It requires a strategic shift in perspective and potentially higher upfront investment. However, the long-term benefits far outweigh the initial obstacles. By collaborating effectively, businesses and governments can foster a more robust system that ensures a smoother flow of goods, minimises disruptions, and ultimately benefits all stakeholders, from manufacturers and retailers to consumers across the globe.