In the country that pioneered the world’s first industrial revolution in the 18th century, its latest one is looking very much on hold.
The global shift toward robotics and artificial intelligence, which is prevalent across advanced economies, is currently in a go-slow phase in the UK – where both Covid-19 and Brexit have hampered progress.
That threatens to harm Britain’s competitiveness against rival economies which are already retooling more aggressively to increase productivity. It could also mean greater long-term pain in the UK labour market, delaying the inevitable adjustment for workers who need to retrain as jobs in industries from manufacturing to retail become obsolete.
“Eventually, businesses will have to automate because it is just cheaper and better – better for employees as well,” said Tera Allas, director of research and economics at McKinsey. “In sectors that are competitive, either we automate them and we continue to be competitive, or someone else automates them and we ship in those goods from some other country.”
Britain has long been a somewhat slow mover in the so-called Fourth Industrial Revolution harnessing the potential of robots and artificial intelligence. That was the conclusion of a report by lawmakers last year, which called on the government to develop a strategy to accelerate that shift.
In manufacturing, for example, the UK has just 89 robots per 10,000 workers, compared to over 900 in Singapore, according to the International Federation of Robotics. That’s the lowest level of any major economy.
One reason for that is subdued investment provoked by Brexit uncertainty and the redefining of Britain’s trading relationship with the European Union.
The transition in place when the UK did finally leave the EU in January provided some encouragement – with spending intentions on plants and machinery rising to a two-year high, according to a Confederation of British Industry survey. Robot orders reached the highest since 2012, another study showed.
But then Covid-19 struck. Business investment plunged more than 30 per cent as a nationwide lockdown shuttered firms, kept employees out of workplaces and broke international supply chains.
Since then, the virus has created a new incentive for businesses to shift away from human employment and find more reliable workers and processes that can’t succumb to illness.
But that has yet to translate into new orders for Brian Palmer, the chief executive of Tharsus. His company creates and commercialises robots for clients such as online grocery giant Ocado Group and jet engine maker Rolls Royce.
“People are still trying to figure out what this new normal looks like,” he said. “There’s more interest, but is there investment and action? Not yet.”
People are still trying to figure out what this new normal looks like
Such news might come as a slight relief for millions of UK employees already facing the threat of layoffs as government wage support winds down. The advent of automation and robotics has long been a spectre hanging over labour markets that could displace as much as 50 per cent of the global workforce, Bank of England chief economist Andy Haldane said in 2018.
That respite may not last forever, though. In a survey of European business leaders by EY, more than 80 per cent said the shift to automation technology will probably accelerate because of the pandemic.
The UK government must take action to spur a technological revolution that will create a "faster and smarter" economy and equip companies for the post-pandemic world, Mr Haldane wrote in a joint paper with former John Lewis partnership chairman Charlie Mayfield for the The Mail on Sunday.
“It is now just much more expensive to employ people because you have to worry about social distancing, you have to worry about safety equipment, you have to worry about testing and tracing,” said McKinsey’s Ms Allas. “Covid itself has massively changed the playing field between capital and labour.”
Guildhawk, a company which provides translation and content management systems for companies like KPMG and Hitachi, is confident that Britain’s Fourth Industrial Revolution won’t stay on hold for long. The company has unveiled two new products since the coronavirus struck – including one which automates the process of checking and correcting large volumes of translated text.
“Now we can see what technology can do for us, people are really pushing forward,” said founder Jurga Zilinskiene. “Instead of looking at tech as some kind of monster to take away your job, now the tech is the hero.”
Still, the risk if businesses don’t respond to the shifting landscape is that the UK will lag further behind peers when it comes to sowing the seeds of future growth by adopting technology to boost poor productivity.
That could not only delay the labour market’s adjustment to the new reality, but also curtail work prospects for future generations of employees.
“The UK have missed the opportunities to invest in automation over a long time,” said Susanne Bieller, general secretary of the IFR. “If you don’t use robots, why would you create the skills around them?”
Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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UAE currency: the story behind the money in your pockets
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Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
UAE squad
Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.
TCL INFO
Teams:
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
Last-16
France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')
Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
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