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The government and DSIT has announced a sweeping £1bn investment programme aimed at positioning the UK as a global leader in emerging technologies, forming a cornerstone of the new Digital and Technologies Sector Plan, which sits alongside a broader modern Industrial Strategy, both released yesterday. The Sector Plan also highlights AI as a frontier technology, following £2bn committed at the Spending Review to implement the AI Opportunities Action Plan, with the government reaffirming its commitment to deliver all 50 recommendations initially set out by the soon departing Matt Clifford (See - AI adviser Matt Clifford steps down from government role).
The largest portion of the new funding package sees £670m dedicated to quantum computing development, making the National Quantum Computing Centre one of the first organisations to receive a decade-long funding commitment. This investment provides long-term certainty to researchers and aims to develop quantum computers capable of outperforming conventional supercomputers by 2035, with applications including drug discovery and advanced carbon capture technologies.
Engineering biology emerges as another major beneficiary with £380m in funding divided between infrastructure development and cutting-edge research programmes. This includes £184m specifically designed to bridge the critical gap between laboratory discoveries and commercial applications, addressing a persistent challenge in translating scientific breakthroughs into market-ready solutions. Meanwhile, a further £196m supports the National Engineering Biology Programme, enabling researchers to focus on developing life-saving medicines, cell-cultivated meats, and climate-resilient crops.
The other large portion of spending includes £370m allocated to advanced connectivity technologies, providing connectivity across transport networks, and supporting defence applications – like drones. This investment is split between a £240m Advanced Connectivity Tech R&D programme and £130m for strengthening the UK Telecoms Lab to enhance network security and reliability across critical infrastructure.
Further investments include support for the UK semiconductor sector. A new UK Semiconductor Centre, backed by £19m, will serve as a central hub for international engagement, helping British firms scale up operations and form strategic partnerships. £35m will also go to expanding the Semiconductor Talent Expansion Programme, designed to address critical skills shortages across the industry. Cybersecurity also received a small allocation, including £10m for Cyber ASAP supporting academic teams, £2m for Belfast's specialised Cyber AI Hub, and £6m for the Cyber Runway accelerator programme.
AI is undeniably going to have the largest impact on government services and in boosting UK productivity and economic growth over the short to medium term, but the commitment to longer term bets such as Quantum computing is significant. The government is finally putting some more weight behind what can be a core strength for the UK, with an already broad ecosystem of innovative quantum startups, supported by the expertise across UK academic institutions. The lack of further investment in cybersecurity is somewhat concerning given the spate of ongoing attacks and breaches, but overall the package of spend is a positive and long-term commitment to leveraging emerging technologies across a range of industries and applications, which should create a number of new opportunities for well positioned UK SITS suppliers.
Posted by: Simon Baxter at 09:40