The UK government has announced a package of measures designed to strengthen the country’s science and technology sectors, boost innovation, and help home-grown companies scale and remain in Britain
The plans, set out in the latest Budget, hope to promote economic growth and create thousands of jobs while ensuring that the UK remains a global leader in emerging technologies such as artificial intelligence and semiconductors.
Backing entrepreneurs and high-growth firms
A considerable part of the Budget is a new Entrepreneurship Prospectus, created to provide founders with a more straightforward route to the talent, finance, and markets they need to succeed. Alongside this, the government confirmed £7 billion through UK Research and Innovation (UKRI) to support innovative companies working across priority sectors, including clean energy, diagnostics, advanced engineering, and life sciences.
To encourage more spinouts and stronger links between academia and business, a new set of Enterprise Fellowships will fund up to 100 researchers to commercialise their ideas or take industry placements.
Investments channelled through the British Business Bank will target scale-ups by increasing access to growth capital, including the creation of at least five new Series B funds and ten new growth-stage fundraisings over the next five years.
The government also intends to act as an early buyer of promising technologies through Advance Market Commitments, beginning with up to £100 million to support the next generation of AI chips. A £130 million Growth Catalyst scheme from Innovate UK will offer grants and tailored support to firms working at the science and tech frontier, building on earlier programmes that generated significant follow-on investment.
Driving AI adoption across key sectors
AI remains one of the government’s main focus areas in its growth strategy. More than £70 billion of investment has flowed into the sector since the current administration took office, and the Budget seeks to accelerate this momentum.
New AI sector champions, experts embedded in industries such as clean energy, advanced manufacturing, and professional services, will lead efforts to expand AI adoption and boost productivity.
The BridgeAI programme, launched in 2023 to help businesses access advice and support on AI integration, will be expanded into more sectors across the industrial strategy. The programme has already supported over 3,000 companies and aims to close the UK’s AI adoption gap by offering funding, expert connections, and tools to help firms deploy advanced technologies.
Strengthening the semiconductor industry
Recognising the importance of semiconductors to AI and advanced computing, the Budget includes a £10 million investment in the industry in South Wales. The funding is intended to support local growth, reinforce supply chains, secure the UK’s role in global semiconductor innovation, and underpin the broader AI Growth Zone.
Reinforcing R&D and university-led innovation
The Budget also details a significant research and development package. Nine billion pounds from UKRI’s overall settlement will be channelled into industrial strategy sectors such as AI and quantum technologies. Funding for university-based research and innovation programmes will be protected in real terms, helping institutions maintain their contributions to economic growth.
Additional measures include new awards to support women innovators, expanded investment in the UK’s Metascience Unit, and the arrival of world-leading researchers through the Global Talent Fund to spearhead work in areas like Alzheimer’s research and crop protection.
The government’s combined efforts mark one of the most comprehensive attempts yet to strengthen the UK’s tech ecosystem.
