Before I share my thoughts on policy, I want to hear yours!
Specifically, if you’re an entrepreneur and you haven’t completed our latest survey, now’s the time. This really is one of the best ways to get your voice heard. Last time around we secured strong press coverage, and all the main parties reached out to find out what they can do to appeal to founders.
If you’re not a founder or have already filled it in, I’d encourage you to share it with your network. A quick post in a WhatsApp or Slack group really does help.
On the Cards
The big news today is that the Government will be bringing in digital IDs. Like Tony Blair, the last Prime Minister to try to bring a version of them in, Keir Starmer is framing the policy around illegal migration, which given the political climate isn’t surprising, but overlooks its wider benefits.
First things first, digital IDs would not plunge Britain into a totalitarian state. There has been much talk about Estonia in the announcement, whose experience has shown to many liberals (with a small “l”) across the political spectrum, including Lib Dem leader Ed Davey, that this isn’t to be feared.
In fact, a digital identity could offer greater liberty than the current system, where data sits across numerous databases with varying degrees of security and can be accessed without record. In advanced digital states, by contrast, you can see exactly who has accessed your data and why. (Even so, I don’t think it’s absolutely required that they’re mandatory for them to be a success in the UK.)
It would also make life easier. As I argued back in 2020:
“The relationship between the state and business owners in the UK and Estonia is starkly different. For example, in the UK the National Audit Office (NAO) has found that there are more than 20 ways of identifying individuals and businesses across 10 departments and agencies, with no standard format for recording data such as name, address and date of birth. This wastes business owners’ time, and leads to delays and errors. It also means that the government doesn’t understand the UK business population as well as it could.”
In Estonia, digital reforms built on digital ID save business owners around 12 million hours every year. Matching this in the UK would equate to about 430 million hours annually. And it’s not just about bureaucracy. Digital states also allow efficiencies and innovation in healthcare, welfare, justice, education, and civic engagement more effectively. The lessons of how digital states coped with lockdowns compared with others shouldn’t be forgotten.
But things get really exciting when you consider what’s around the corner. As the newly minted Special Adviser for Britain’s Science Department Kirsty Innes and I argued years ago, we could soon see a proactive, one-stop-shop for government services that anticipate citizens’ needs – whether renewing a passport, filing taxes, or receiving tailored healthcare – rather than forcing people to navigate dozens of disconnected systems.
We wrote that in an essay collection that included a foreword from Tony Blair, who, of course, failed to bring in ID cards (for both technical and messaging reasons). While most discussion today in Westminster has focused on the negative case for not bringing them in, we shouldn’t forget the positive argument: this is the first step to ending bureaucracy.
Way to Make a Living
In case you missed it, we’re hiring a new Researcher or Senior Researcher to join the team. The deadline is this Sunday. Find out more here.
Wise Words
On Thursday we hosted a small roundtable with our Adviser Iain Butler, Head of Innovation Incentives at Buzzacott, to dissect the R&D Tax Credits. We’re going to produce a short briefing off the back of the roundtable, with lessons for policymakers. If you’re keen to share your experiences and insights with us anonymously – whether good, bad or somewhere in between – drop me an email with your thoughts.
Subscribers to our Policy Updates newsletter will receive the briefing in their inboxes. If you’d like to host a similar deep dive on a policy area relevant to entrepreneurs, just let me know.
Message from our Partner
Corporate Partners Blick Rothenberg and the Centre for the Analysis of Taxation (CenTax) are hosting a high-impact breakfast debate bringing together successful entrepreneurs, ultra-high-net-worth individuals, and heads of tax and finance to have a discussion around how our tax system should evolve to meet the needs of a modern, competitive economy. Taking place on Wednesday 15 October, this will be a unique opportunity to help shape the conversation and contribute to meaningful reform. Please note, places are limited.