The UK government is set to invest £2.5bn in quantum computing and artificial intelligence (AI) as part of efforts to keep leading technology companies and researchers from relocating overseas.
Chancellor Rachel Reeves told the BBC she is determined to halt the trend of British firms and scientists “drifting abroad” in pursuit of better financial opportunities, stating that she wants “the pattern to end”.
Speaking ahead of a major address to business leaders in London, Reeves said the funding package would form part of a broader strategy to stimulate economic growth, alongside closer cooperation with the European Union and expanded regional powers.
UK Tech Investment Plan Targets AI Growth And Innovation
During her Mais Lecture at Bayes Business School, Reeves is expected to outline ambitions for the UK to achieve “the fastest AI adoption in the G7”, supported in part by increased public investment in domestic technology sectors.
She will also highlight the potential of quantum computing, which is widely regarded as a transformative field due to its ability to process and store vastly more information than traditional computers. The government believes this sector could generate up to 100,000 jobs across the UK.
Reeves described her economic approach as one that demonstrates the value of stability alongside a “strategic and active state”, speaking from the National Quantum Computing Centre in Oxfordshire.
Industry figures have echoed concerns about companies leaving the UK. Ashley Montanaro, co-founder and chief executive of Phasecraft, pointed to examples of British firms being bought by overseas competitors or founders relocating, particularly to the United States.
“So I think the chancellor is right to be alert to this and to look at mechanisms to ensure the UK remains a fantastic place for quantum computing,” he told BBC Radio 4’s Today programme.
Montanaro added that while access to large-scale investment has historically been easier in the US, there are signs of change, with the UK increasingly viewed as an attractive base for building technology companies.
Brexit Debate And Global Pressures Challenge Economic Strategy
The announcement has drawn criticism from opposition figures, with the Conservatives accusing the government of attempting to “row back on Brexit” and deflect responsibility for economic challenges.
Shadow chancellor Sir Mel Stride said the speech would include “more detail on Labour’s plan to drag us closer to the EU”, adding that Reeves was “blaming anyone but themselves for their economic failures”.
Reeves is expected to argue that aligning with EU regulations in certain sectors — where it benefits jobs and businesses — could support economic recovery. While alignment is already planned in areas such as food and farming standards, her remarks may indicate broader cooperation in industries like chemicals and manufacturing.
At the same time, global instability could complicate the UK’s growth plans. Rising oil prices linked to the ongoing US-Israel conflict with Iran have raised concerns about inflation and economic slowdown.
YOU MAY ALSO LIKE: Trump Plans To Delay China Visit With Xi Amid Iran War Escalation
Asked about potential responses, including accelerating North Sea oil projects such as Rosebank and Jackdaw, Reeves said a decision would be made “soon”, noting that such matters require coordination across government.
“Every country has got to play their part in ensuring energy supplies are there when we need them… particularly at a time when the Strait of Hormuz in effectively closed,” she said, referencing increased production efforts in countries including Canada and Norway.
She also pointed to plans to reconnect the UK with European energy markets as part of a broader post-Brexit reset, which she said could help stabilise energy costs.
Why you can trust SurgeZirc UK. Learn more about our editorial standards.
