Chancellor John Healey will use his first Budget on Wednesday to commit hundreds of millions of pounds to a British approach to artificial intelligence, covering national security, home-grown technology and the impact of AI on jobs. The package, announced on 24 October, is designed to cut the UK's dependence on other countries for chip design and cyber defences while supporting domestic firms and talent.

The measures include new investment in AI chip design capability in Edinburgh and a new AI Centre of Excellence in Manchester, intended to spread jobs and training opportunities beyond London and the south east. The government says the centres will help ensure the benefits of AI are felt in every postcode.

Security and jobs at the heart of the plan

The Treasury will also back up to £300 million in public-private investment for a new AI Biosecurity Lab, bringing together scientific expertise to protect people from emerging biological threats. Fresh funding for the AI Security Institute forms part of the package, alongside £10 million a year to lead the UK's work on understanding how AI will reshape jobs and industry, and how workers can be supported into new roles.

Healey said AI would transform daily life for every firm, community, hospital and school, and that his approach would not leave workers behind. Security minister Dan Jarvis said the investment would help the UK stay ahead of those who seek to use AI to do harm. The announcement comes days before the Budget, with the government also promising households and businesses breathing space as energy costs rise.