As reported in various news sources this week, it has been announced that the government is asking overseas technology firms to support the UK’s burgeoning digital economy.

Jeremy Hunt, the Secretary of State for Culture, Olympics, Media and Sport says the government is looking to support online growth through both public and private funding, from all suitable sources.

Hunt added that £530m has been put aside to help the growing digital economy for the next five years. The figure is made up of £230m saved from the digital switchover scheme, and a further £150m per year from the BBC licence fee for two years beginning in 2013.

The culture secretary revealed that he has visited technology companies in Silicon Valley in recent months to discuss possible investment in the UK, which could could take a number of forms, including assistance in developing the software, skills and infrastructure required to improve digital capacity in this country.

The announcement was made at the launch of the Google “Connected Kingdom” report which estimated that UK’s online economy equates to 7.2% of the UK’s GDP and is worth £100bn.

Google’s report stated that the government in this country needs to increase the adoption of broadband and its capacity.

The department for Culture Media and Sport also pledged to ensure that the UK has the “best broadband network in Europe by 2015”.

Please note the views expressed in this blog are the views of the author, Andre Brown and do not represent the view of Locayta, its employees or its shareholders. For more information about Locayta, visit www.locayta.com