Call for state backing of promising tech firms

The UK Government should insure first customers of tech start-ups in return for a stake in the new businesses, according to a new report.

Think tank IPPR said underwriting the first customer contracts of promising firms would make it less risky for potential clients to do business with them, allowing for the securing of early contracts.

In return, the government would receive an equity stake in the firm, to be held in a Citizen’s Wealth Fund, which would be used to support skills and training for workers who face losing their jobs through automation.

IPPR director Tom Kibasi said the plan would give the public a stake in firms’ success.