HM Treasury has announced a package of investment in artificial intelligence worth hundreds of millions of pounds. Chancellor John Healey wants the benefits of AI to reach “every postcode” and British AI firms to grow faster. AI is to be part of the Budget the chancellor will present on Wednesday 28 October. Industry body techUK estimates the whole package at more than £600 million.
For businesses, four items matter most. £30 million is to launch local AI partnerships with regional authorities led by mayors (Mayoral Strategic Authorities). Councils, businesses, universities and colleges are to take part, and workers are to gain AI skills. £25 million will go to a competitive fund for British innovators in AI and cybersecurity.
The Sovereign AI Fund, which invests directly in British AI companies, will receive an extra £60 million. A new priority will be AI in industry: robotics, autonomous systems and advanced manufacturing. A further £60 million will cover a research procurement programme, including in healthcare and AI safety.
The plan also includes £18 million for a new UK Advanced Chip Design Academy, investment in chip design in Edinburgh and an AI centre of excellence in Manchester. £10 million a year will go to research into how AI will change the labour market and how to help workers find jobs. The AI Economics Institute will receive £23 million over three years.
Some of the money concerns security: £60 million for the National Cyber Shield, £70 million for a new centre for detecting vulnerabilities in critical infrastructure (NERV) and £120 million for the AI Security Institute. We have already written separately about the AI Biosecurity Lab.
What it means for you
Small and medium-sized businesses may gain access to local AI support programmes and training – first in areas with regional mayors, e.g. Manchester, Liverpool, the West Midlands or Yorkshire. Technology firms, including those founded by Poles, can enter the £25 million competition and research procurement. Workers can look forward to AI skills courses, but details, criteria and dates are not yet known.
The announcements do not create new obligations for businesses. This is money and programmes, not new regulations.
Our assessment
These are concrete sums, but spread across many small programmes. The most practical for an ordinary business are the £30 million local partnerships – although nationally that is not much. The real effect depends on how quickly mayors open applications. We expect details to appear in the Budget on 28 October and in the following weeks. Businesses in Scotland should watch the investment in Edinburgh.
What to do
- Read the government’s full announcement: GOV.UK – the chancellor’s AI plan.
- Check your regional authority’s (Combined Authority) website and sign up for its newsletter on business programmes.
- Look for innovation competitions and grants on Innovate UK – Innovation Funding Service.
- Protect your business against cyberattacks – free advice: NCSC – small business guide.
Source: HM Treasury, GOV.UK (24.10.2026). Contains public sector information licensed under the Open Government Licence v3.0.
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
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