Reeves urged to back AI in Autumn Budget to drive growth
Chancellor Rachel Reeves is under pressure to deliver a decisive push for AI in tomorrow’s highly anticipated Autumn Budget, with industry leaders calling for billions in investment, thousands of jobs, and a clear roadmap for UK growth.
The government has already attracted more than £78bn of private investment in AI, with a further £24.25bn committed in the last month alone.
A key initiative, the new ‘AI Growth Zone’ in South Wales, is set to unlock £10bn in investment and create more than 5,000 jobs over the next decade.
Funding of £137m has also been earmarked to support scientists developing new drugs, cures, and treatments, part of a broader effort to cement the UK’s position as a leading AI hub.
Patrick Sullivan, chief executive of the Parliament Street think tank, said: “The advent of mass AI adoption can bring savings and stimulate productivity at a time when other fiscal options are limited.
“By supporting tech talent and AI deployment, the government can drive economic growth across the UK.”
Cyber and regulation
Industry leaders are clear that investment alone is not enough.
Graeme Stewart, head of public sector at Check Point Software, said: “Investing billions in AI is vital, but the cyber and regulatory risks are real.
“Attacks on the NHS, local councils, and other critical infrastructure show nothing in the public sector is off limits.
“AI rollout must be accompanied by a robust strategy to protect national infrastructure.”
Kenny MacAulay, chief executive of Acting Office, added: “AI investment can kickstart growth, but it must be paired with measures to restore private sector confidence and get companies hiring again.
“The financial services and accountancy sectors are key to supporting businesses and meeting regulatory obligations, AI should strengthen, not disrupt, that process.”
Audit and advisory firm Blick Rothenberg also highlighted the importance of clarity in allocating the £2bn committed under the AI Opportunities Action Plan.
Evelina Panchal, director at the firm, said: “Tech firms need specifics on how and when funding will be delivered. Without clarity, the potential of AI will remain on paper.”
Ben Peters, co-founder of AI start-up Cogna, pointed to infrastructure as the critical bottleneck.
“Productivity starts with energy and industrial capacity”, he said. “AI funds and sandboxes won’t make a difference if factories cannot afford to run.
“Fast-track energy costs, infrastructure, and planning approvals are essential to make AI a true driver of growth.”
Skills and funding gap
Skills shortages and limited access to capital remain major barriers for UK tech.
While 78 per cent of UK professionals use AI weekly, only 24 per cent are formally trained.
Mid-sized tech companies, the “missing middle”, require simplified funding channels and streamlined R&D reliefs to scale.
Ahead of the Budget, the Department for Science, Innovation, and Technology announced a National Renewal Package for AI.
Measures included the South Wales AI Growth Zone, a £100m advance market commitment to buy AI hardware from UK start-ups, £500m for the Sovereign AI Unit, new AI Ambassadors, and £250m in free compute access plus £127m for AI-driven scientific discovery.
Estimates suggest AI could add up to £400bn to the UK economy by 2030.