Chancellor John Healey pledges major AI investment in Wednesday's budget to boost UK security
Healey commits hundreds of millions to a 'distinctively British' AI strategy including new research centres, a biosecurity lab and job protection measures.
At a glance
- Chancellor John Healey will use Wednesday's budget to commit hundreds of millions of pounds to a British AI strategy focused on security and prosperity.
- Investments include an AI chip design centre in Edinburgh, an AI Centre of Excellence in Manchester, and up to £300m for a new AI Biosecurity Lab.
- The plan addresses cyber risks and job disruption fears, with £10m annually to study AI's impact on employment.
Chancellor John Healey will use Wednesday's budget to announce hundreds of millions of pounds in artificial intelligence funding aimed at strengthening Britain's security and economic prosperity. The investment forms what he described as the largest ever commitment to guard against cyber risks and the disruptive potential of AI, while pursuing a "distinctively British" approach that protects workers and national interests.
The package includes fresh funding for the UK's AI Security Institute and other critical institutions. New facilities will be established in Edinburgh for AI chip design and in Manchester for an AI Centre of Excellence. The Treasury also pledged up to £300 million in public-private investment for an AI Biosecurity Lab to address emerging biological threats, and £10 million annually to study how AI will reshape jobs and industries.
Healey framed the strategy as central to Labour's growth plan under Prime Minister Andy Burnham, who replaced Keir Starmer this summer. Official figures show AI investment helped the UK achieve the strongest G7 growth in the first half of the year, even as the Middle East war drives oil prices above $117 a barrel and reignites cost-of-living pressures.
The announcement comes amid mounting concerns about AI risks. A serious vulnerability in a foundational web programming language took websites offline globally this week, while Barclays revealed plans to cut 5,000 jobs as AI-driven efficiency gains accelerate. Defence Secretary Wes Streeting separately urged households to stock 72 hours of supplies under a new "Be Ready" campaign citing weather, cyber and other emergencies.
Security Minister Dan Jarvis said the investment would keep the UK "one step ahead of those who seek to use AI to do us harm" while seizing opportunities to strengthen national security.
Source: The Guardian Business.
Questions and answers
- What AI investments are announced in the budget?
- The budget includes an AI chip design centre in Edinburgh, an AI Centre of Excellence in Manchester, £10m yearly for job impact research, and up to £300m for an AI Biosecurity Lab.
- Why is the government investing heavily in AI now?
- The government aims to harness AI for economic growth and national security while guarding against cyber threats and job losses, amid global technology competition.
- How does this relate to current economic challenges?
- The budget comes as the Middle East war drives up oil prices and living costs, while AI investment has helped the UK lead G7 growth this year.
