In my country, they wanted something similar. The difference is they offered to pay a reward to anyone able to create a 'tool' to help them to analyze transactions. No matter who you are. I would prefer they hire me instead of creating software for them. profitability first!

Governments won't keep using blockchain analysis companies forever, they will create their own employment. We will see a lot of very high paying jobs created in the years to come, someone with knowledge about cryptos, especially their blockchain, could end up working for the taxes department or police with a salary as high as a company owner with thousands of employees.
The problem is not a lot of people have deep knowledge and when they have, they're already working for a tech company with a comfortable salary, making it harder to hire. The demand and supply.
The UK government tracking bitcoins activity is somewhat a way for the government to trace in illegal activity that may be linked to sex slavery, prostitution, illegal subtance trade and other inhumane activities. Other than that, this is a way for the government to monitor taxes that will be imposed. We just need to be clear with the extent of information that will be given to the UK government. We need solid guidelines regarding the penalties that will be imposed if ever the UK government fails to do their job properly. This is very important as cryptocurrency is used by so many people and that we need to ensure that these are not abused and used in illegal transactions.