UK Science and Tech Sector at 'Crisis Point' as Companies 'Bleed Out', Lords Committee Warns

Lords Committee Sounds Alarm on UK Tech Exodus

The United Kingdom's failure to retain and scale its burgeoning science and technology companies has reached a 'crisis point', leading to the economy 'bleeding out', according to a stark new report from the House of Lords Science and Technology Committee. Published on November 5, 2025, the report, titled 'Bleeding to Death: The Science and Technology Growth Emergency', issues a severe warning to the government, urging immediate and radical reforms to prevent further economic decline.

Economic Impact and Lost Opportunities

Lord Mair, Chair of the House of Lords Science and Technology Committee, emphasized the gravity of the situation, stating, 'The UK's failure to scale its science and technology companies has reached crisis point.' He highlighted the nation's 'sluggish productivity growth and near-flat real wages since the global financial crisis', attributing this partly to the UK's inability to retain the economic benefits of its research and development (R&D) efforts, which he described as a 'fatal flaw in any growth strategy'. The report points to a 'procession of promising science and technology companies choosing to scale overseas rather than in the UK'. Notable examples include quantum computing innovator Oxford Ionics, acquired by a US company, and transplantation technology firm OrganOx, sold to a Japanese concern. Other companies like Deliveroo and Wise have expanded abroad, with even life sciences giant AstraZeneca reportedly 'eyeing the exit'.

Urgent Reforms Proposed

To counteract this trend, the Committee has put forward several key recommendations:

• Establishment of a new, high-level National Council for Science, Technology and Growth, modelled on the National Security Council, to provide clearer leadership from the Prime Minister and Chancellor.
• Reforms to 'counter-productive visa policies' for global talent, advocating for the UK to 'roll out the red carpet rather than red tape' for skilled professionals.
• Accelerated and expanded Mansion House Reforms to unlock institutional investment, with incentives for pension funds to invest in UK science and technology companies.
• Mandatory targets for government departments to spend with innovative UK-based Small and Medium-sized Enterprises (SMEs) through public procurement reforms.
• Consolidation and scaling of public investment bodies, including Innovate UK, the British Business Bank, and the National Wealth Fund.
• Changes to career structures, pay, and incentives to facilitate easier movement between academia, business, and government.

A Call for Decisive Action

Despite government ambitions to make the UK 'one of the top three places' to scale a business and to secure the first trillion-dollar technology company by 2035, the report warns that the country is 'sliding in the opposite direction'. The Committee stresses that without 'urgent and radical reform', the government risks acting too late. However, it also maintains that with 'decisive and speedy action' from the Prime Minister and the Chancellor, the UK still has a chance to 'seize the enormous opportunities for technological and economic growth' and 'stop the bleeding', ultimately reaping significant rewards for the nation.