Businesses will lose out to foreign rivals unless ministers accelerate rise of robots, MPs warn

British businesses face being unable to compete with firms from other major economies unless they increase the number of robots in the workplace, MPs have warned.



The Business, Energy and Industrial Strategy (BEIS) committee accused ministers of allowing G7 rivals to “steal a march” in the fourth Industrial Revolution.

They said ministers need to draw up a "robot and artificial intelligence strategy" so the UK can take full advantage of the developing technology.

And the MPs warned there was a danger that “too few” robots in the workplace could hold back the economy and future jobs growth.

Committee chair Rachel Reeves said: “The switch to automation brings challenges for businesses and for workers, with fears for livelihoods or disruption to job roles coming to the fore.

“The real danger for the UK economy and for future jobs growth is, however, not that we have too many robots in the workplace but that we have too few.

“For all the potential of the UK, and despite our excellent tech and research base, the fact is that we are lagging behind our international competitors in our adoption of robot and automation technologies.

“Productivity, economic growth, and ultimately job-creation and higher earnings, will flow to those countries that capitalise on these technologies.”

The MPs dismissed suggestions of a “robot tax” as a means of curbing job losses to automation, insisting that it would “not be in the interest of businesses or workers”.

They added that ministers should instead bring forward proposals in the next budget for a new tax incentive thst encouraged investment in new technology.

Ms Reeves added that automation was necessary to improve living standards, the quality of work and aspirations towards a four-day working week – which the report dismissed as “feasible, but not currently practical”.

“The Government should come forward with a UK Robot and AI Strategy to support businesses and workers as they manage the transition to a more automated world of work,” she added.

“This new Strategy must seek to get the right support in place, on issues such as skills, investment and training, to ensure that all parts of the UK share in the jobs and growth benefits offered by automation.”

The Department for Business, Energy and Industrial Strategy has been approached for comment.