Chancellor John Healey has set out more than £600m of AI spending ahead of Wednesday's Budget. It includes an extra £60m for the Sovereign AI Fund, whose remit now extends to robotics, autonomous systems and advanced manufacturing, and £165m for a national AI biosecurity programme.
The package was announced on Saturday, four days before Healey's first Budget. It came days after Barclays set out plans to cut 5,000 jobs in an efficiency drive involving AI, and the Treasury framed the spending as a "distinctively British approach" that would not leave workers behind.
The cap-table angle: more sovereign capital
For founders and investors, the key line is the top-up to the Sovereign AI Fund. The fund has already started writing equity cheques into British AI companies, so the extra £60m adds to the pool of state money available to UK AI rounds.
The wider remit matters as much as the extra money. Bringing robotics, autonomous systems and advanced manufacturing into scope opens the fund to hardware-heavy companies, which usually need more capital before they earn revenue. These sectors have struggled to raise large domestic rounds without overseas leads.
Where the rest of the money goes
The biggest share goes to security. £165m is set aside for a National AI Biosecurity Initiative, including £100m for a new AI Biosecurity Lab. The government calls the lab a world first. It will use AI to detect biological threats and develop medical countermeasures.
The lab will also receive up to £200m in AI model credits from OpenAI and Anthropic, alongside partnerships with Google DeepMind and London-based Basecamp Research, which has raised a $140m Series C led by S32.
Other allocations:
- £120m more for the AI Security Institute
- £60m for a National Cyber Shield that uses AI agents to strengthen cyber defences
- £70m for a National Exposure and Real-Time Vulnerability (NERV) Centre to find weaknesses across critical national infrastructure
- £30m for local AI partnerships, plus a new cyber security training centre in Manchester
- £15m for a competition rewarding AI innovations that tackle health problems
On jobs, the Treasury will commit £10m a year to studying AI's impact on employment. A further £23m over three years goes to the AI Economics Institute.
Reaction
AI minister Kanishka Narayan said Britain could not rely entirely on overseas technology. He argued that backing British science, advanced chips and domestic AI companies would strengthen national security and create skilled jobs across the country.
Julian David, chief executive of techUK, welcomed the package and said it would help British AI companies grow in the UK rather than abroad.
What's next
Full details, including when the Sovereign AI Fund top-up will be available and how the fund will judge robotics and manufacturing deals, are expected in Wednesday's Budget documents.
Original source: City AM — https://www.cityam.com/healey-vows-ai-will-not-leave-workers-behind-in-600m-budget-package/
