The Chancellor’s priorities include growth in every part of Britain, AI and innovation and a deeper relationship with the EU.

“In this changing world, Britain is not powerless. We can shape our own future. Our method is stability, investment and reform – through an active and strategic state,” she said during her Mais lecture yesterday.

“Our plan is clear. To build for growth, to champion innovation and to make Britain the place where the industries of the future are created.”

Building future-leading technologies ‘at home’

During her speech, the Chancellor outlined the UK’s ambition to lead the quantum revolution, which she said could create more than 100,000 UK jobs and generate £212 billion of economic impact over the next two decades.

In a landmark funding announcement, UK AI and quantum technologies are expected to receive £2.5 billion to ensure these companies across the country are starting, scaling and succeeding nationwide.

“AI is the defining technology of our era,” the Chancellor said. “Britain cannot afford to stand still. With this strategy, I believe we can approach the future with confidence – with the technologies of the future invented, built and deployed here in Britain.”

This investment is expected to deliver on the government’s modern Industrial Strategy, which identified AI and quantum as significant growth sectors that are ‘critical’ to long-term economic renewal.

It comes after the UK has been accused of lagging behind in AI adoption.

“Less than a third [of UK companies] are encouraging the uptake of AI tools. And compliance fear is the number-one reason that prevents large organisations from realising AI’s full potential,” said Soniya Bopache, SVP and GM of data compliance at Arctera.

“Businesses need to grab the bull by the horns … An early focus on compliance during decisions on risk, investment and strategy helps organisations scale faster, avoid costly redesigns later, reduce audit burden and build trust and credibility with customers, partners and investors.”

In recent years, the UK government has committed to bolstering data centre infrastructure to fuel AI growth – classifying these facilities as critical national infrastructure in 2024. Now, the Chancellor is eager to move beyond enabling data centre capacity.

“Data centres are not an end in themselves,” she said during her speech. “What matters more is that we identify and pursue those parts of the supply chain where we can win the global race, marrying a clear-eyed assessment of our comparative advantage with precise analysis of where sovereign capabilities can give us in Britain maximum leverage.”

The quantum promise

Alongside UK technology secretary Liz Kendall, the Chancellor also announced a new investment from the National Quantum Computing Centre in Oxford – with a new £2 billion quantum computer procurement programme expected to help companies prove there is demand for their services, raise capital and innovate.

The government’s ‘reform package’ for AI and quantum also includes a £500 million Sovereign AI Fund expected to be launched in April to give companies funding and compute access.

With strong guardrails in place, it is hoped that companies can more successfully expand into new markets and accelerate deals.

“The UK’s role is to back that with a clear, innovation-friendly framework that enables speed with control and makes responsible AI the default,” Bopache added.

Kendall added: “I am determined this country grasps the benefits Quantum computing will bring. It is only by keeping pace with technological progress that we can deliver the high-paid jobs, cutting-edge public services, and innovations which change lives.

“This government is ushering in a quantum leap – making the choice today to back UK scientists, companies and innovators so we can deliver a future that works for all.”

Related stories

UK AI data centre investments: Empty promises or slow growth?

OpenAI and Microsoft boost UK AI Alignment Project amid questions over digital sovereignty

Will agentic AI really ‘rejuvenate’ the UK economy as tech experts claim?