British tech sector needs political boost, say IT firms

LONDON, July 21 (Reuters) - British IT firm Micro Focus (MCRO.L) on Tuesday called for tax breaks and other support for the technology sector to drive economic growth and create 250,000 jobs in the UK.

The company harnessed industry and cross-party backing for its campaign for measures including investment incentives, improved university courses and research and development tax breaks.

Chief Executive Stephen Kelly said UK plc faced serious challenges but, in management-speak, was in a "turnaround situation" with IT opportunities at the forefront of recovery.

"The last thing we are looking for is a bailout," he said at the launch of the campaign at the Houses of Parliament.

"What we want is a business-led initiative to get the spirit of entrepreneurialship, make that sustainable and be able to scale that so small start-up companies can go up to the next phase and the next phase to become global players."

The plan, which aims to create 250,000 technology jobs over the next 10 years, received cross-party support from Lords Young, Harris and Razzall.

Others backing the campaign include Jon Moulton, CEO of Alchemy Partners, and Neil Berkett, CEO of Virgin Media. Kelly said he was keen to get other IT companies on board.

Kelly said the framework would be complete before the political party conference season in the autumn.

The technology sector employed about 1.5 million people in the UK in the final quarter of 2008, according to the National Statistics Labour Force Survey.

(Reporting by Paul Sandle; Editing by Rosalba O'Brien)