The UK’s digital technology sector continues to accelerate faster than the rest of the economy. The digital tech sector is worth nearly £184 billion to UK economy, up from £170 billion in 2016.
Turnover of digital technology companies grew by 4.5% between 2016-17 compared to UK GDP which grew by 1.7% over the same period, according to the figures.
This means that the tech sector grew at 2.6 times faster than the rest of the economy. At the same time the number of jobs in digital tech rose at five times the rate of the rest of the economy, demonstrating how the digital tech sector is one of the best performing sectors in the UK economy.
The estimated Gross Value Added (GVA) of the IT, software and computer services sector rose from £30.5bn in 2012 to £35.1bn in 2013. The North of England include several tech clusters - Liverpool, Manchester, Sheffield/Rotherham, Leeds, Hull, Sunderland, and the Newcastle & Durham areas - which together produce an estimated £9.9bn of Gross Value Added, and employ approximately 283,500 people
This area has been dubbed a potential 'Digital Powerhouse' if recommended improvements to public-private sector partnerships, procurement, investment and other areas are put in place. The proponents of the 'Powerhouse' idea believe the North's digital businesses could generate a further £5.7bn if tech worker productivity in the North increases in line with the national average. The digital workforce of the North of England has grown by 28 per cent in the last five years and is projected to total 363,000 by 2020