Research from IT finance provider Syscap and research from investment and research body Nesta has shown that investment has fallen along with IT innovation and funding.

Syscap reported that IT investment fell by 10 percent while Nesta reported business innovation investment dropped £24 billion.

Geoff Mulgan, Nesta's CEO, said: "Everyone agrees that innovation is the only route to long term growth” and that “Other countries are making investment in innovation a top priority and the UK cannot afford not to do the same.”

Syscap’s CEO Philip White, commented: ““This trend in under investment in IT is not seen, for example, in Germany- quite the opposite”.