Championing national talent and enterprise was a key message from Chancellor Rachel Reeves’ Spending Review at the House of Commons this afternoon.
The chancellor outlined how the government intends to spend the £600bn budget, which included a focus on supporting investment in new startups via the British Business Bank, funding boosts for nuclear energy and carbon capture and storage as well billions of additional finance aimed at delivering the government’s AI Opportunities Action Plan.
Here are the key policies affecting UK tech announced during Wednesday’s Spending Review.
R&D funding to reach record levels
Key to Labour’s manifesto commitments, Reeves confirmed that state funding for research and development (R&D) would be extended to record levels, reaching more than £22bn by the end of the Spending Review.
The chancellor first teased the funding boost for R&D on Monday ahead of the review. The move follows the decision from the Department for Science, Innovation and Technology (DSIT) to set 10-year R&D budgets, aiming to provide researchers long-term assurance in their work.
AI spending boost
Artificial intelligence has become central to this government’s messaging and strategy and in that spirit, Reeves announced an additional £2bn would be allocated to DSIT to deliver its flagship strategy, the AI Opportunities Action Plan, which aims to encourage the widespread implementation of automation in the public and private sector.
Addressing the issue of digital and technological skills, Reeves added that £1.2bn would be put towards new high-skilled apprenticeship and training programmes for young people.
A bolstered British Business Bank
Turning to the issue of underinvestment in British scaleups, Reeves announced the government would be “increasing the financial firepower of the British Business Bank”, the UK’s development bank and one of the largest investors in startups and scaleups in the country.
British Business Bank’s investment capabilities are set to increase by two-thirds, with its overall capacity to reach £25.6bn.
Increased spending on energy security and climate tech
The prime minister announced earlier this year plans to radically increase investment into nuclear energy, a policy which the chancellor built on in her Spending Review with the announcement of £30bn commitment to the “biggest rollout of nuclear power for half a century” as well as £2.5bn to fund research into nuclear fusion.
The chancellor also reaffirmed the government’s plans to support carbon capture and storage technologies, first revealed in last year’s Autumn Budget.
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