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Digital Policy Roundtable #3

From the local Digital Economic Policy to international data protection compliance: highlights from the third Sheffield Digital Policy Roundtable.

The third Sheffield Digital Policy Roundtable took place on Monday 15 December 2025, at the Innovation Centre – one of the key hub spaces of the Sheffield Innovation Spine. Following previous sessions at Sheffield Technology Parks and the Electric Works, this event brought together representatives from the region’s digital industry, local and regional authorities, universities and colleges, and central government bodies. The discussion focused on updates to local economic development initiatives and the impact of emerging national legislation, in particular the Online Safety Act 2023 and the Data (Use and Access) Act 2025.

The Sheffield Digital roundtables were launched at the beginning of last year in response to a growing need for the city’s digital community to have a stronger voice in national, regional and local policy discussions; and for contemporary policy debates to be better understood by local firms and our partner organisations.

Who was in the room?

The following organisations were represented at the roundtable:

  1. Sheffield Digital – Chris Dymond
  2. Sheffield City Council / Business Sheffield – Dean Hughes
  3. Sheffield Hallam University – Jonathan Gorst
  4. University of Sheffield (Faculty of Social Sciences) – Kate Dommett
  5. Relatable Security – Kit Barker
  6. Reach Studios – Jonty Ward
  7. DSIT (Department for Science, Innovation and Technology) – Jessica Housden
  8. MHCLG (Ministry of Housing, Communities and Local Government) – Justin Homer
  9. Innovate UK Business Connect – Andy Curtis & Emma Cooper
  10. The Floow – Sam Chapman
  11. TechSY / SYMCA – Tracey Johnston
  12. Sheffield Innovation Spine – Charlotte Thompson
  13. Get In Agency – Nathan Edmonds
  14. University of Sheffield (School of Computer Science) – Kalina Bontcheva
  15. Hive IT – Jonny Rippon
  16. Simoda – Dan Bumby
  17. Sheffield College – Laura Faulkner
  18. Paper Studio – Mark Goddard

What was discussed?

1. Regional and local economic development policy updates

Attendees received an update on the Sheffield Innovation Spine, which is now firmly embedded in the region’s twenty-year growth plan. The conversation highlighted a shift in focus: moving beyond simply identifying buildings to creating a genuine community where businesses feel they are “part of the Spine” regardless of their exact postcode.

There was significant discussion regarding the city’s infrastructure capabilities, specifically whether there is enough power and digital connectivity to support energy-intensive tech businesses and data centres. Updates were also provided on Runway Park – which is being developed as a hub for research and development on the site of the old Sheffield Airport – and the new micro-mobility (e-bikes & scooters) scheme set to launch in 2026 to improve transport links in disadvantaged areas.

The group discussed the progress of the TechSY programme, which has spent the last year gathering data on the local tech sector. This research revealed that the region is enjoying its best-ever financial year for Venture Capital investment and has seen a maturing of the local “Angel” investment community. Despite these successes, concerns were raised about the sustainability of these support programmes, with funding for key projects set to end in mid-2026. The discussion emphasised the need for consistent, long-term support to help startups scale up. 

Sheffield Digital also introduced its new “Pathways off the Plateau” programme, designed to help established digital companies that have stopped growing to reach the next level as well as the “Talking AI” campaign to raise awareness of how AI is being used and productised across the region, which is planned for 2026.

2. Connecting public and private sectors 

A significant talking point was how effectively the public sector engages with the local tech industry. Industry representatives shared frustrations regarding missed opportunities, citing recent visits by high-profile international tech leaders which key local public officials were unable to attend. The discussion acknowledged the difficulty public sector bodies face in managing large numbers of invitations, but there was a strong consensus on the need for better communication and articulation of opportunity.

3. National strategic updates 

Attendees were briefed on recent major policy publications, including the government’s Digital and Technologies Sector Plan. This strategy aims to make the UK a top-three global destination for tech businesses by 2035, with a specific focus on six “frontier technologies”, namely: Advanced Connectivity Technologies, Artificial Intelligence, Cyber Security, Engineering Biology, Quantum Technologies, and Semiconductors.

The discussion also touched on the newly launched National Data Library, which is designed to unlock public sector data assets for use by innovators, and the UK Compute Roadmap, which outlines plans for building the world-class computing infrastructure required to support the next generation of AI and research.

4. The Online Safety Act 

The conversation moved to legislation, specifically the impact of the Online Safety Act 2023 which is now in implementation. Opinions in the room were divided, with some participants expressing concern that the regulations are leading to unintended consequences, such as platforms preemptively blocking legal content to avoid risk, which could affect the digital media and games industries and creative expression generally. Others defended the legislation as a necessary framework that protects users online and reduces the risk of illegal activity, noting that this is a novel and evolving policy challenge so the framework will need to adapt over time.

5. The Challenge of International Data Compliance 

Finally, the roundtable addressed a growing issue for local digital businesses: exporting services. While there is plenty of government advice for companies exporting physical goods, participants noted a lack of support for those exporting digital services.

As the UK, EU, and US legal systems diverge – particularly with new EU laws regarding Cyber Resilience and Artificial Intelligence and the UK’s Data (Use and Access) Act 2025 – it is becoming increasingly difficult for UK companies to stay compliant when trading abroad. The group noted that many small and medium-sized enterprises (SMEs) are unaware of these complex new requirements (such as the need for a Software Bill of Materials – SBOM), creating a risk that they may be effectively locked out of international markets as compliance becomes baked into tenders.

It was highlighted that standard business support channels currently lack the specialist legal knowledge to guide firms through this increasingly complex landscape. Public sector representatives acknowledged this gap and committed to raising it as a priority with their teams at both local and national levels.

The takeaway

The roundtable revealed a region at a pivotal moment. With the Innovation Spine and Runway Park now integrated into statutory planning and venture capital investment hitting a record high, the ecosystem is visibly maturing. However, this ambition must now be matched by infrastructure – both physical and relational.

Practically, the region could face significant hurdles regarding the power and connectivity needed to host data centres and energy-intensive tech. Relationally, recent missed opportunities with international visitors highlight a need for better signaling. Key initiatives like TechSY remain tenuous, with a real risk that recent gains could be undone without sustained public sector commitment beyond current short-term funding cycles.

A further critical test will be whether the region is able to successfully take advantage of emerging national policy vehicles, such as the new Sector Plans and related legislation, to boost its tech and digital media industries .

Finally, a new “compliance cliff” has emerged as digital trade borders harden, leaving local exporters without adequate support. Yet, the session’s most encouraging outcome was the immediate willingness to collaborate among those present – moving from simply identifying these problems to co-creating policy solutions.

If you represent a Sheffield Digital Company Member and would like to participate in the next Digital Policy Roundtable, please get in touch with Chris Dymond (chris@sheffield.digital) – further dates will be announced during the Spring.