Reeves vows to stop UK tech 'drifting abroad' with 2.5bn AI and quantum push

"Speaking ahead of a major address to business leaders in London, Reeves said the government would invest £2.5 billion into artificial intelligence and quantum computing to strengthen the UK's position as a global technology hub and ensure more homegrown innovation scales domestically rather than relocating to markets such as the United States."

"The intervention reflects growing concern within government and industry that the UK is failing to retain its most promising tech businesses. While Britain continues to produce world-class startups and research, many ultimately move overseas in search of deeper capital markets, more favourable tax regimes and stronger institutional backing."

"Reeves is expected to argue that the UK can achieve the fastest rate of AI adoption in the G7, positioning the country at the forefront of a technological shift that could define global competitiveness over the coming decade. She will also highlight the potential for quantum technologies to generate up to 100,000 jobs."

Chancellor Rachel Reeves has committed to preventing British technology companies and scientific talent from relocating abroad through substantial government investment. The government will invest £2.5 billion into artificial intelligence and quantum computing to strengthen the UK's position as a global technology hub. This initiative addresses a persistent problem where promising British startups and research move overseas seeking deeper capital markets, favourable tax regimes, and stronger institutional support. Reeves describes her economic strategy as creating a more strategic and active state, combining targeted investment with regulatory stability and international partnerships. Quantum computing and AI are identified as next-generation technologies expected to drive advances across pharmaceuticals, finance, and productivity sectors. The strategy aims to achieve the fastest AI adoption rate in the G7 and generate up to 100,000 jobs through quantum technologies.

Read at Business Matters