The tech industry has been reacting to the Chancellor’s Spending Review, as the market finally got insight into how the government intends to spend the £600bn budget.
“Today’s Spending Review demonstrates this government’s continued commitment to harnessing AI, and the significance of this frontier technology to supercharging Britain’s renewal and elevated global status as a true pioneer and innovator in this field,” said Mark Taylor, founder and chief executive of Automated Analytics.
“British owned AI companies like mine are ready and waiting to provide the insight and resources needed to ensure the strong progress made to date doesn’t dampen.”
Taylor highlighted that the £2bn funding for the AI Action Plan will provide much-needed support if implemented correctly. “It is important that the £2bn funding for the AI Action Plan reaches every part of the country, funds the right projects and provides support for home growth British AI companies to increase in number and stay in the UK.”
Championing national talent and enterprise was a key message from Chancellor Rachel Reeves.
“Founders and entrepreneurs: £86bn is coming for science, tech, and innovation. If you’re in health tech, climate, or deep tech, it’s game on!” said Natalie Knight-Wickens, partner at law firm Spencer West LLP.
“Startups need to know how to protect what they’re building, from ownership of code and data to navigating funding agreements with regional authorities. The opportunity is real, but it’ll favour those who are legally ready.”
Knight-Wickens also emphasises that funding is just part of the equation. “Remember, innovation doesn’t just need funding, it needs foundations,” she added.
The Spending Review 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.
“We welcome the announcements made in today’s spending review, and the role they can play in supporting our most vital services and driving growth,” said Alexander Iosad, director of government innovation policy at The Blair Institute.
“Any spending review requires tough choices, all the more so when the fiscal space is as narrow as it is today. Technology is the key to escaping the recent cycles of more spending, for worse results.
“Today’s decisions must set us on the path towards a fundamental reimagining of how public services function, not minor tweaks on the margins.
“That means getting our data infrastructure up to 21st-century standards, making AI the new normal across the public sector for all routine tasks and embracing fast innovation in central and local government.”
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