Our fourth Digital Policy Roundtable, held on 15 July in the Assembly Room at Leah’s Yard, brought together people from the local digital industry, economic development and universities to explore how policy is affecting the businesses that make up Sheffield’s tech ecosystem.

Following the established structure, the conversation followed three broad areas: local and regional economic development, national industrial and digital policy, and the practical concerns businesses face when those policies reach their doorstep. Across all three, a recurring question emerged: how do we turn ambitious strategies into opportunities that smaller firms can actually use? 

The roundtables give Sheffield’s digital community a stronger voice in policy discussions and help businesses understand decisions being made locally, regionally and nationally. The meeting was held under Chatham House Rules, and this public account summarises the discussion without identifying who contributed particular views.

Who was in the room?

The following organisations were represented at the roundtable:

1. Sheffield Digital – Chris Dymond
2. Artumi Systems – Richard Fletcher
3. TechSY – Tracey Johnson
4. University of Sheffield (School of Computer Science) – Heidi Christensen
5. Sheffield City Council / Business Sheffield – Dean Hughes
6. Sheffield Hallam University (School of Computing and Digital Technologies) – Yasir Javed
7. Octane / Undercloud – Wayne Smallman
8. Sheffield Technology Parks – Rose Tran
9. Sheffield Innovation Spine – Charlotte Thompson
10. Relatable Security – Kit Barker
11. University of Sheffield (IT Services) – Chris Willis

What was discussed?

1. Local and regional economic development

The discussion began with South Yorkshire’s integrated settlement and what greater regional control over funding could mean for business support. Detailed spending decisions were still being developed at the time of the meeting, alongside longer-term plans for supporting businesses at different stages, particularly around innovation and growth. This included the future of TechSY and the importance of maintaining support beyond individual funding cycles.

A central topic was the relationship between national industrial priorities and South Yorkshire’s ambition for inclusive growth. Advanced manufacturing and emerging technologies offer opportunities for investment and skilled employment, but connecting those opportunities to wider prosperity requires attention to local recruitment, education and supply chains. The conversation also explored digital’s position as both a distinct industry and an increasingly important part of other sectors, including established businesses moving towards software-based products and services.

Connections between businesses, researchers and specialist facilities featured strongly. Sheffield’s manufacturing heritage and research capabilities attract investment, while work to map semiconductor activity is revealing businesses and assets that are less well known. However, turning those strengths into opportunities for local digital firms depends on people understanding one another’s work. The discussion considered how to create those encounters, including before a startup has an idea to validate, and whether earlier initiatives connecting digital businesses with manufacturers could be renewed.

The Sheffield Innovation Spine provided another context for this discussion: how buildings are used, and the activities they host, matter alongside the provision of space. Plans for the Open Doors Innovation Festival and Northern Tech Summit offered opportunities to make local capabilities more visible, introduce residents and learners to innovative businesses, and build relationships across the North.

Education and employment brought the conversation back to practical questions of inclusion. Topics included the digital skills of further-education students, employers’ experience of placements and apprenticeships, and the capacity of small firms to provide supervision and suitable working environments. A possible discussion between college students and digital employers, and shared approaches to hosting placements, were explored as ways to understand and address these barriers.

2. National industrial and digital policy

The national policy discussion began with the one-year update on the Digital and Technologies Sector Plan and its focus on six frontier technologies. Recent networking around semiconductors and quantum provided a starting point for exploring how Sheffield’s research strengths might translate into a larger local business base.

The distinction between internationally connected research and locally rooted commercial activity was an important theme. Research can be influential without generating a substantial network of nearby spinouts, suppliers and growing companies. The discussion examined what helps that transition, including stronger connections between disciplines, collaboration between universities, clearer intellectual-property arrangements and employment structures that make establishing a spinout less risky for academics.

There was also discussion of the stage at which young companies have a promising product but lack the resources to meet prospective customers’ requirements. Demonstrating security, managing legal obligations and providing assurance can be difficult before a business is large enough to employ specialists. These challenges connect commercialisation policy with the practical support needed to turn an idea into a viable supplier.

Data governance and security formed the other substantial part of this section. Discussion of the Data (Use and Access) Act 2025 focused on proportionality and how businesses understand their responsibilities. This led to a broader examination of the foundations of information governance: knowing what data an organisation holds, why it processes it and which risks need managing.

The conversation explored how security and good governance can support business performance and customer confidence, as well as meet compliance requirements. It also considered the role of accessible guidance, practical examples and standards in helping smaller organisations apply these principles.

AI-assisted software development brought these issues into sharper focus. The discussion covered how faster development can amplify weaknesses in code review, testing, staff training and control over deployment. Instructions given to an AI tool still require checks that the resulting software meets the intended requirements.

Across these topics, a recurring question concerned the availability of practical support. Expert sessions and university programmes provide useful help, but the conversation explored gaps in awareness and guidance for both new founders and established businesses adapting to changing technology and legislation.

3. The practical concerns businesses face as a result of policy

Public procurement occupied much of the discussion about policy in practice. The conversation examined how a relatively straightforward digital project can acquire extensive requirements through the interaction of regulations, procurement processes and organisational risk aversion. It also considered the difficulty for a small supplier of challenging a requirement that appears disproportionate while still trying to submit a compliant bid.

Examples prompted discussion about whether these problems arise from the rules themselves, their interpretation or a lack of confidence in making proportionate decisions. Similar difficulties can occur when buyers and suppliers misunderstand their respective responsibilities for data protection and assurance. Adding more paperwork does not necessarily resolve that uncertainty.

Transparency was another focus. Contract award notices identify successful bidders, but may offer limited insight into what they proposed or how requirements were assessed. The discussion explored whether greater visibility of successful responses, clearer feedback and simpler approaches for small projects could make public work more accessible.

This connected to the wider opportunity for public institutions to become customers for local digital businesses. Procurement friction affects buyers as well as suppliers, and the conversation returned to earlier efforts to open up public IT spending to a broader range of providers. The ambition in the national AI Opportunities Action Plan for the public sector to become a better customer provided a policy reference point, alongside questions about how that ambition translates into everyday purchasing.

Dependence on major software suppliers was also discussed, including rising licence costs and AI features being incorporated into products regardless of whether customers want them. This prompted a related conversation about education and the balance between teaching particular software packages and developing skills that transfer between products.

Finally, the roundtable considered confidence in public support, particularly R&D tax credits. Discussion covered the deterrent effect of disputed claims and retrospective repayment demands, the role of advisers, and the difficulty of addressing abuse without discouraging legitimate applications. Experiences of national tax incentives were distinguished from local grant schemes. The broader issue was how clarity, proportionality and trust influence whether small businesses pursue the opportunities available to them.

The takeaways

The discussion identified several practical opportunities to follow up, alongside questions that need more focused work:

• Shape the next phase of business support. Feed the needs raised at the roundtable into ongoing planning for TechSY and the wider support offer, including help for established businesses changing their business models and firms navigating new technology and regulation.
• Strengthen connections between digital businesses and research. Explore renewed links with advanced manufacturing and specialist facilities, including a possible visit or future roundtable at the AMRC. The aim is to help businesses discover relevant expertise, potential customers and opportunities for collaboration.
• Make routes into digital work more practical. Develop the proposed conversation between digital employers and Sheffield College, sharing successful approaches to apprenticeships and placements while addressing the capacity constraints of smaller firms.
• Improve access to governance and security guidance. Build on existing support to help businesses understand their data responsibilities and assess the safety of AI-assisted development. Further work could identify gaps in provision and make available expertise easier to find.
• Continue the conversation on public procurement. Examine how clearer requirements, proportionate assurance and better feedback could make public contracts more accessible to local digital suppliers, with buyers and businesses involved in identifying practical improvements.
• Follow up concerns about R&D tax credits. Seek an update on the response to concerns already raised through Startup Coalition, particularly around disputed claims, repayment risks and their effect on businesses’ confidence in using the scheme.

These follow-ups will help inform future roundtables and conversations with partners. A wider question remains how investment in advanced technologies can create opportunities across South Yorkshire’s businesses and communities.

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) – the next policy roundtable is being planned for late November or early December.