UK Digital and Tech Industries — [Siobhain McDonagh in the Chair]

Part of the debate – in Westminster Hall at 3:00 pm on 18 April 2018.

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Photo of Leo Docherty Leo Docherty Conservative, Aldershot 3:00, 18 April 2018

It is a pleasure to serve under your chairwomanship, Ms McDonagh. I am grateful to my hon. Friend Mrs Main for calling this important debate. I will talk briefly, but first I want to put in context the importance of the digital sector to our country’s economic output. We must bear in mind that the digital industries make up 4% of all employment and 7% of economic output, which is remarkable and represents remarkable growth in recent times.

One successful growth story is UKCloud, a very large company in my constituency. Just a few years ago, it was a start-up of six people. Under the amazing leadership of Simon Hansford, it has grown to now employ nearly 200 people. This month, it will take on another 50 employees. It has been remarkably successful, and it represents some of the recent explosive growth we have seen across the sector. As the name would suggest, UKCloud is a cloud storage business. It has successfully delivered cloud solutions for: central Government, including the Cabinet Office, the Home Office, the Ministry of Defence and other bodies of Government such as the Driver and Vehicle Licensing Agency and Her Majesty’s Revenue and Customs; many local authorities; health organisations; and other private businesses.

UKCloud’s unique offer is that it can scale up and compete with large multinationals. The offer is extremely cost-effective, so it can punch above its weight. That has come about as a direct result of the Government’s drive to open up cloud procurement through G-Cloud. I am sure the Minister will agree in her closing remarks that that has been a commendable success in encouraging British small and medium-sized enterprises to get into that space, punch above their weight and compete with the large multinationals.

Another significant thing about UKCloud is that it has a very important offer when it comes to national security. This year it is establishing a high-assurance cloud platform, which will basically be a secret facility known as UKCloudX. It will enable the Government to fulfil an important intelligence function, which is the ability to share intelligence across a number of different Government bodies and achieve the doctrinal intent of fusion. It is all very well when different intelligence agencies or bodies have information and intelligence, but unless they can share and fuse it in a highly secret manner, the intelligence cannot achieve its best effect in support of our national security.

UKCloudX is an important development, which has a direct impact on our national security at the highest level. I am delighted that that work will be taking place in Farnborough this year. No one in this room needs reminding of the importance of this country’s having a cutting-edge approach to the handling of intelligence and data, given the recent domestic challenges we have faced with our national security in Manchester with the atrocity just a year ago and the recent developments in Salisbury. UKCloud is playing an important role in our national security.

The other important aspect is data sovereignty. Due to recent developments, especially with regard to Facebook, which has already been mentioned today, the importance of the secure handling of data is clear to us all. Whether it is Government data or the personal data of citizens, the way that is handled and the total control we need to have over that to guarantee security are of the utmost importance. Data sovereignty should be a strand that runs through the Government’s approach to the industry as a whole, but particularly when it comes to the procurement of cloud storage facilities. I would be grateful for the Minister’s reassurance that when the Government consider procuring future cloud storage for their work, they will guard against any tendency to prefer US hyperscale offers—the big US providers—and instead prefer British SMEs, which not only offer 100% data sovereignty, but also offer the immediate economic benefit of the jobs and growth we have discussed today. I commend the Government for their attitude in terms of the G-Cloud, which has been a great success, but I would welcome the Minister’s reassurance on preferring UK SMEs in procurement.

Various invitations have been mentioned today. The Minister would not forgive me if I sat down without warmly extending an invitation to her to visit Farnborough and UKCloud. It is extremely convenient, being just off junction 4 of the M3. I am sure we can provide a very good lunch. I know she does not need that kind of incentive, however, because her commitment to her brief is such that she will want to see things at first hand. On that note, I conclude my remarks.