UK backs biosecurity, cyber defence and domestic AI firms

The UK government has announced an AI investment package ahead of the Budget spanning national security, domestic businesses, research and local adoption. Chancellor John Healey said the approach aims to spread economic benefits across the country while protecting workers and strengthening national resilience.

A National AI Biosecurity Initiative will receive £165 million, including £100 million for a new lab and £65 million for bio-surveillance and medical countermeasures. OpenAI and Anthropic will provide up to £200 million in AI model credits, separate from government cash investment. The package also adds £120 million to the AI Security Institute, allocates £60 million to a National Cyber Shield and provides £70 million for a centre using AI to identify cyber vulnerabilities.

Domestic industry support includes £60 million for the Sovereign AI Fund, whose remit will expand into robotics, autonomous systems and advanced manufacturing. Another £60 million will support research and development procurement, while a £15 million challenge prize will initially target health problems. An Edinburgh chip-design academy will receive £18 million.

Local partnerships with Mayoral Strategic Authorities will receive £30 million to support adoption, businesses and workforce skills. Funding also backs research into AI’s effects on jobs and productivity, but the announcement does not specify retraining measures for affected workers. Delivery will depend on clear governance, accessible funding, coordinated programmes and public bodies’ ability to procure and deploy useful tools safely.