UPDATED: 'Not true... wholly inaccurate and not based on fact' - Tech City UK and government slam reports of 'rift'

Reports in the UK tech media are completely false and factually incorrect spokesperson tells Computing

Rumours of a "rift" between UK Trade & Investment (UKTI) - part of the department for Business, Innovation and Skills (BIS) - and Tech City UK, the organisation which aids burgeoning technology firms, have been dismissed by both parties as "not true".

An "exclusive" report by Techworld today suggested that Tech City UK, which was initially set up by Prime Minister David Cameron to support Silicon Roundabout startups, had had its funding withdrawn following a falling out between Tech City UK chair Joanna Shields and individuals in UKTI.

However, a UKTI spokesperson told Computing that reports of a falling out are "not true" and that the way Tech City UK received funding from government had actually been changed in January 2014 - without any disagreement. Funding is now provided though Innovate UK, a separate body within BIS.

"UKTI funded Tech City UK when it was called Tech City Investment Organisation. It hasn't funded Tech City since January of last year and in fact UKTI did cut funding then when the nature of the organisation changed," said the spokesperson, who added: "It's odd that it's suddenly surfaced now."

Tech City UK also dismissed reports of a rift between the organisation and UKTI or any other government department as "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 January 2014. The funding for 2015-2016 is £2.2m and covers Tech City UK's programmes, policy informing and championing work," said a Tech City UK spokesperson in a statement issued to Computing.

In addition to this, the government is providing Tech City UK with a further £2m for the new TechNorth programme in 2015-16.

The spokesperson told Computing that "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".

Update: In a statement issued to Computing, Dominic Jermey, chief executive of UKTI said: "I candidly repeat the comments from Tech City UK, there is absolutely no truth in this story".

"While the nature of our funding relationship has changed, UKTI and Tech City UK collaborate on many projects," he continued

"I regard Tech City UK as an important partner in our ongoing work to make the UK an attractive place for technology companies to do business," Jermey concluded.