Tech City UK, an organisation which helps tech startups in London, had its government funding cut after its Chair Baroness Joanna Shields fell out with part of the government, Techworld reports.
Baroness Shields, who previously ran Google and Facebook's presences in Europe, is Prime Minister David Cameron's Digital Advisor. She also serves as chair of Tech City UK, which works to support the UK tech sector.
Techworld's report claims that a "rift" between Shields and UK Trade & Investment (UKTI), the part of the government that looks after Tech City UK, led to a cut in funding for the organisation. UKTI had been providing Tech City UK with an annual budget of £2 million. However, Tech City UK denies that it has seen its funding cut, saying in a statement to Business Insider that "Baroness Shields and Tech City UK have an excellent relationship with UKTI."
The funding cut reportedly forced Tech City UK to seek funding from sources other than the government. PwC, KPMG and Jones Lang LaSalle are thought to be new backers of Tech City. But it has also secured funding from Innovate UK, a public body that provides grants aimed at helping British businesses.
Tech City UK has seen a wave of negative press recently. Techworld reported that it had struggled to hand out its allocation of special Visas to tech employees coming into the UK from abroad, only managing to grant seven instead of its allocation of 200. And multiple London technology companies spoke out against Tech City UK in a Financial Times article that was critical of the organisation.
Here's Tech City UK's full statement about the rumoured cut in funding:
The points made in this article are wholly inaccurate and not based on fact. Tech City UK receives public funding from the Department for Business, Innovation and Skills, via Innovate UK and has done since Jan 2014. The funding for 2015-2016 is £2.2 million and covers Tech City UK’s programmes, policy informing and championing work. In addition to this, government is funding TechCity UK with £2m for the new TechNorth programme in 2015-16.
Prior to January 2014, when the Tech City Investment Organisation became Tech City UK, funding was provided by UKTI.
Baroness Shields and Tech City UK have an excellent relationship with UKTI, as demonstrated by the recent collaboration around the launch of HQ-UK and an ongoing range of programmes to promote the UK’s technology ecosystem.