Pension fund and visa rule changes unveiled to spur UK innovation – as it happened

• Facebook's Supreme Court could curb viral posts

• Netflix says cinemas will lose the right to show films before they can be streamed

• Questions mount over Deliveroo's £8bn London listing

• Sign up here for our daily technology newsletter

Chancellor Rishi Sunak introduced a range of new measures to unlock billions of pounds from pension funds to allow them to back innovative start-ups across the country.

During his Budget speech on Wednesday, he also said that he was drafting in "ambitious visa reforms" that were aimed at "highly-skilled" migrants. Mr Sunak also said the Government would introduce a new un-sponsored points-based visa to attract the "best and most-promising international talent" in both science research and tech.

He said the new visa regime would result in "radically simplified bureaucracy" to entrepreneurs and scale-up businesses.

The changes were part of a raft of pro-business incentives introduced by Mr Sunak. The Chancellor also said the FCA will consulting proposals around dual-share listings, which were brought forward by Lord Hill's report on the City's attractiveness as a location to go public, "very shortly".

Elsewhere, Volocopter, a Germany flying taxi company, has raised €200m (£172m) ahead of its first commercial flights in 2023. The company plans to start launching commercial flights in Singapore within the next two years with tickets already on sale for 15-minute tourist flights for €300.

Meanwhile, Amazon has been forced to tweak its new app icon after some users pointed out that it looked similar to Hitler.

06:31 PM

See you tomorrow

That's the end of tonight's live blog. Tune in from 7am tomorrow for more tech news, and take care until then.

06:14 PM

Netflix leaps onto the TikTok bandwagon

The TikTok clones just won't stop coming. Now Netflix is getting in on the act with a short-form comedy feed called Fast Laughs, showing around 100 brief clips per day.

Unlike TikTok and similar services, this will be curated content – professionally produced and specifically picked out by Netlix. But it will also be designed for viewing on a vertical smartphone screen, and the clips could be as short as 15 seconds.

That means Facebook (via Instagram), YouTube, Snapchat and numerous smaller companies such as Dubsmash and Triller are all attempting some kind of TikTok-like new product. There are more details on Netflix's effort over at Variety.

04:54 PM

US could take '18 months' to recover from SolarWinds hack

In Washington DC, the US government's top cybersecurity official has said it could take more than 18 months to fully recover from the devastating SolarWinds hack.

Brandon Wales, acting director of the Cybersecurity and Infrastructure Agency, told the MIT Technology Review:

Western nations have blamed Russia for the massive, months-long cyberattack that compromised numerous government agencies and companies by getting inside SolarWinds, a widely-used network management service.

Fun fact: Mr Wales' predecessor at Cisa, Christopher Krebs, was fired in the final months of Donald Trump's presidency after contradicting the President's claims that the election was stolen. He was respected across politics and industry, not least for his swift bulletins countering false claims about the vote.

04:26 PM

Parler drops lawsuit against Amazon

Parler has dropped its competition lawsuit against Amazon for cutting its access to web hosting in the wake of the Capitol riot.

Lawyers for the conservative social network did not disclose why it was withdrawing from the fight, although it did say it reserved the right to restart legal action in future.

The US court had not so far been very kind to Parler, rejecting its attempt to immediately restore the firm's account pending a final ruling. “Parler’s allegations at this time are both inaccurate and unsupported," wrote Judge Barbara Rothstein.

Amazon booted Parler off its AWS web hosting service on Jan 9, accusing it of failing to control hate speech and violent threats from Trump supporters. In any case the site is now back online, having found a new host that it said was not beholden to "Big Tech".

03:46 PM

Google says it will no longer track users across the web once it phases out cookies

Alphabet-owned Google has said it will not build alternative tracking tools once it phases out third-party cookies.

The move is likely to reform how online advertising works. Google said last year that it would do away with the cookies early last year, which were widely used by advertisers to track and target users across the web. However, some questioned whether Google would build different tools that could achieve the same results.

In a blog post on Wednesday, the tech giant said that this would categorically not be the case.

"We continue to get questions about whether Google will join others in the ad tech industry who plan to replace third-party cookies with alternative user-level identifiers," David Temkin, Google's director of product management said.

"Today, we’re making explicit that once third-party cookies are phased out, we will not build alternate identifiers to track individuals as they browse across the web, nor will we use them in our products."

03:09 PM

China overtakes US in global race to dominate AI

China has overtaken the US in the number of artificial intelligence (AI) citations, according to a new report. My colleague Morgan Meaker reports:

Read the full story here.

02:31 PM

UK start-up sector buoyed by visa and pension fund changes

Britain's start-up sector received a boost today, after the Government unveiled plans to funnel more cash into early stage businesses and allow more talent to come into the country. As my colleague Hannah Boland reports:

02:11 PM

Britain's listing rules are "stuck in the past" and driving businesses into the hands of competing countries

The City should "no longer be synonymous" with big banks and FTSE 100 companies, according to Daniel Pinto, the head of Stanhope Capital.

Mr Pinto said the City should become a financial "centre of choice for SMEs and growing businesses". He also said the recommendations put forward by Lord Hill were a "big step in the right direction".

Lord Hill has proposed the introduction of dual-class shares that would allow founders to keep control of their companies by giving them stronger voting rights.

“Businesses are looking for listing structures that allow them to be priced fairly and accurately, to continue to manage their company’s future growth, and sometimes to access public markets capital in small stages, rather than the current all-or-nothing options presented to them in the UK," Mr Pinto said.

"Our current IPO system is inefficient and inflexible, and is driving these businesses into the hands of international competitors to the City."

01:41 PM

'Critical' the Future Fund supports tech start-ups to achieve scale

The new Future Fund: Breakthrough initiative must help tech businesses to achieve "real scale", according to Fraser Robinson, the CEO of logistics firm Beacon and former head of Uber in EMEA.

“It is critical that the government supports tech and tech-enabled businesses that are emerging from the early stages and have the potential to break through to achieve real scale, and the Future Fund: Breakthrough initiative is a welcome step," he said.

"It is these kinds of businesses that will help put the UK on a faster, steeper economic trajectory versus its peers.”

Mr Sunak revealed amendments to the rules around pension funds to help "fill the scale-up funding gap".

"High-growth firms need access to capital, to do that we’re taking steps to give the pensions industry more flexibility to unlock billions of pounds from pension funds into innovative new ventures," he said.

Mr Sunak also said the Government will be "changing the rules to encourage more companies to list here". He also praised a review by Lord Hill, who proposed the introduction of dual-class shares akin to those alowed in Silicon Valley.

The Chancellor said the Financial Conduct Authority will be reviewing Lord Hill's recommendations "very shortly".

01:20 PM

Sunak unveils UK's first-ever infrastructure bank

The Chancellor has also unveiled a new institution that will be mandated with backing big green projects across the country.

"Located in Leeds, the bank will invest across the UK in public and private projects to finance the green industrial revolution," Mr Sunak said.

"Beginning this Spring it will have an initial capitalisation of £12bn and we expect it to support at least £40bn in total investment in infrastructure."

01:10 PM

Britain's corporation tax rate set to increase to 25pc in 2023

Tech companies in the UK are set to pay higher rates on their profits after Chancellor Rishi Sunak announced corporation tax would rise substantially in two years' time.

During his Budget speech in the House of Commons today, Mr Sunak said the tax on profits for corporations would increase from 19pc to 25pc in 2023.

12:58 PM

Britain set to double contactless limit to £100

Britain is set to double the limit on contactless payments to £100, the finance ministry said on Wednesday.

The move comes after the coronavirus accelerated a shift away from cash payments. The limit on contactless will increase from £45 on Wednesday but the ministry said it will take some time before it comes into practice as companies will need to make changes to allow the payments.

It said the country was no longer bound by the cap that was applied by the European Union. Throughout the pandemic, shops have pushed for customers to use cards instead of cash.

12:32 PM

Netflix hit by widespread outages

Video-streaming giant Netflix has been hit with widespread outages with some users complaining that they cannot access the service.

DownDetector data points out the volume of reports spiked to 1,571 at around 10.38am this morning. Netflix has said it is investigating the issue. A heat map of the outages shows that there have been a concentration of reports in London.

The bulk of the issues are associated with users reporting "no connection" with the service. Many have cited an error code NSES-500, which is preventing them from watching shows and movies.

11:59 AM

Micro Focus shares jump 17pc on Amazon tie-up

Shares in London-listed Micro Focus jumped more than 17pc this morning, after the software company revealed it had struck a tie-up with US cloud giant Amazon. My colleague Hannah Boland reports:

11:29 AM

Australian Bitcoin firm doubled funding round ahead of IPO

Iris Energy, an Australian Bitcoin-focused data centre firm, has doubled its latest funding round to A$40m (£22.1m) ahead of its planned initial public offering.

The company had originally set a A$20m for its pre-IPO round but the company is now looking to expand it following a A$13m commitment from Platinum Asset Management, according to Bloomberg.

Iris plots to publicly sell its shares in the middle of next year. The funds will be used to build a 50 megawatt data centre in British Columbia in Canada, where it has already funded a 30 megawatt project.

The expansion of the round comes as the value of Bitcoin soared so far this year and is now up 70pc to in excess of $50,000.

11:04 AM

British studio behind Fall Guys snapped up by Fortnite maker

The deal is the latest UK acquisition by Epic Games, which is among the world’s most valuable technology startups. My colleague Matthew Field reports:

Read the full story here.

10:38 AM

Dialog points to surging profits ahead of Japanese takeover

Dialog Semiconductor's profits spiked by more than a fifth at the end of last year, ahead of a £4bn takeover by Japan's Renesas Electronics. My colleague Hannah Boland reports:

Dialog said revenues were up 15pc at $439m (£314m) in the final three months of 2020, sending underlying profits 21pc higher at $110m.

The company, which designs chips used to manage smartphone power circuits, support bluetooth connections and illuminate displays, said it had experienced a surge in demand during the pandemic, as the shift to remote working meant more people were buying headphones, fitness trackers, digital watches, notebooks, and tablets.

Dialog had been among the semiconductor companies hurt by a production slowdown at the start of the pandemic, as factories in China were forced to reduce capacity, but said during the final three months its supply chain "has remained stable during the quarter, with most suppliers and our customers’ contract manufacturers continuing to operate at almost full capacity".

The results come just weeks after Dialog Semiconductor revealed it had agreed to a €4.9bn (£4.19bn) takeover by Tokyo-based semiconductor firm Renesas - the latest in a string of British technology firms to be snapped up by Asian rivals. Dialog said the deal remained subject to regulatory approvals in a number of jurisdictions, but was expected to close during the second half of the year.

Britain is currently putting in place a national security and investment bill, to help protect British companies from takeovers, and yesterday provided more clarity on which areas it would cover, including semiconductor research and design.

Hermann Hauser, the founder of Acorn whose technology was spun out to create semiconductor leader Arm, said Dialog's takeover would be "a disaster for Europe".

Dialog's systems can deliver wireless connectivity at low power - something which is expected to feed into Renesas's work on electric and driverless cars.

Mr Hauser said this was "one of the few growth markets Europe has great strength in and we should do everything to keep it in Europe".

It comes amid an ongoing row over whether US giant Nvidia should be allowed to buy Cambridge-based Arm from SoftBank. Critics argue that it would put Arm's status as the "Switzerland of chips" at risk.

10:16 AM

German air taxi start-up Volocopter raises €200m

Volocopter, a German start-up that is building electric air-taxis, has raised €200m (£172m).

The new funding comes as the market for air-taxis becomes increasingly competitive as companies race to provide the first commercial flights.

Airport operator Atlantia SpA, tire maker Continental, and Avala Capital, have all backed the company in the Series D round. Volocopter said the round was oversubscribed with all existing investors taking part.

The German firm intends to start commercial operations by 2023 in Singapore with tickets for a 15-minute flight already on sale for €300.

In the US, regulators are also considering a type-certification application that would clear the way for similar flights in the likes of New York and San Francisco.

09:54 AM

Samsung considers four sites across the US for chip production

Samsung is considering four sites across the US where it could build a $17bn (£12.2bn) plant that will produce computer chips.

The South Korean tech giant is sizing up two sites in Arizona, another in New York, and a separate one in Austin, Texas.

The company is also seeking tax abatements worth $1.48bn over the course of 20 years from Travis Country in Texas, Reuters reported.

Samsung is in talks with sites in Arizona and New York that are offering "significant grants or refundable tax credits".

A new plant could create as many as 1,800 jobs, according previous documents filed with Texas state officials.

09:24 AM

Bitcoin bounces back after regulation fears

Bitcoin rebounded on Wednesday as it shook off concerns of potentially tougher oversight than some had expected.

The world’s most-valuable cryptocurrency dipped on Tuesday following a US Senate appearance by Gary Gensler, a nominee for chairman of the Securities and Exchange Commission.

During his appearance, Mr Gensler said that making sure cryptocurrency markets were free from fraud and manipulation was a challenge for the agency.

The digital coin gained as much as 4pc on Wednesday and is now priced at $50,654 (£36,191). Bitcoin is up around 70pc so far this year.

Mr Gensler, who served as a Commodity Futures Trading Commission chairman during the Obama administration, is widely viewed as a strong advocate for digital currencies.

John Wu, president of blockchain technology firm Ava Labs, said Gensler was “largely positive” during this appearance.

“I’m hopeful the new administration will help foster innovation in blockchains, cryptocurrencies and digital assets, instead of stifling it,” he told Bloomberg.

Bitcoin has soared throughout the year as more companies take up positions in the digital currency. Tesla’s Elon Musk has been a strong advocate for the currency with his tweets causing repeated spikes in its value.

08:53 AM

Europe still months away from introducing vaccine passports for travel

The European Union is still up to four months away from introducing vaccination passports that could help kickstart the aviation and hospitality industries.

The Commission is working on “establishing a trust framework and a digital infrastructure that would facilitate the authentication of” such documents, according to a briefing note circulated to national delegations in Brussels that was reported by Bloomberg.

The memo stated that the technical work underpinning the platform could require “three to four months”.

A number of member states are at odds over the introduction of the passes, which will be used to confirm if their holders have been vaccinated, tested negative, or have recovered from the virus.

A host of issues still need to be resolved around the passes, including whether they will facilitate travel within the EU and what it means for journeys beyond its borders.

08:20 AM

Elon Musk tries to change name of Texas town with a tweet

Elon Musk is eyeing a name change for Boca Chica, Texas, the Gulf Coast community where his company SpaceX is building its futuristic deep-space rocket.

“Creating the city of Starbase, Texas,” Musk tweeted Tuesday. “From thence to Mars, And hence the Stars.”

A SpaceX representative made a “casual inquiry” recently about requirements to incorporate Boca Chica and rename it the City of Starbase, said Cameron County Judge Eddie Trevino.

Read the full story here.

07:52 AM

Amazon redraws logo after users compare it to Hitler

Amazon has updated its app icon after some users claimed the recent redesign looked like World War II dictator Adolf Hitler.

The tech giant unveiled its new logo in January based on its famous cardboard boxes. It marked a significant change from the shopping trolley icon that had adorned the app for years.

The new icon is brown with a small bit of blue parcel tape coming down from the top. The tape sits just above the Amazon smiling arrow. Users began to point out that the icon now resembled that of Hitler as it looked as though the company had recreated his infamous toothbrush moustache.

Amazon has since updated the icon. It has cut the corner of the tape and also removed its jagged edge at the bottom.

One user pointed out that the icon was now "15pc less Hitler" after the rebrand while others noted that the comparison could not be "unseen" after it was pointed out.

In a statement Amazon confirmed the redesign but did not reference the comparisons with Hitler.

"We designed the new icon to spark anticipation, excitement, and joy when customers start their shopping journey on their phone, just as they do when they see our boxes on their door step," the company said in a statement to NBC.

07:10 AM

Coming up today

12.30pm: Chancellor Rishi Sunak delivers Budget

07:10 AM

Five things to start your day

​1) Facebook's Supreme Court could curb viral posts Former Guardian editor Alan Rusbridger said the Oversight Board was already 'frustrated' with telling Facebook to take posts down or leave them up

2) Joe Biden's market watchdog to put trading apps like Robinhood under new scrutiny Gary Gensler, the incoming head of the Securities and Exchange Commission, promised new scrutiny after the GameStop trading controversy

3) Netflix says cinemas will lose the right to show films before they can be streamed Chief operating officer Greg peters said the cinema industry will be forced to buckle before the tide of consumer demand

4) Crowdfunding sites are making thousands from Covid disinformation CrowdJustice said its website had also been used to raise money to campaigns to support doctors in their fight for better PPE

5) Questions mount over Deliveroo's £8bn London listing It comes after a judge found at Uber's drivers are not independent third-party contractors and should receive basic employment protection