Chancellor John Healey has unveiled further investment in artificial intelligence ahead of his first Autumn Budget on Wednesday 28 October 2026, with the package focused on the risks to jobs and on national security. The announcements, reported on 27 October, include £10 million a year to improve the government's understanding of how AI will reshape jobs and industry.

Chip design and skills

The package includes £18 million for a new UK Advanced Chip Design Academy to build advanced chip-design skills, with new chip-design capability in Edinburgh, and a new AI Centre of Excellence in Manchester to train government cyber-security and AI specialists. Healey said the aim was to cut UK dependence on other countries, bolster security and resilience, and support home-grown businesses and talent.

Biosecurity and cyber defence

Other measures include £165 million for a National AI Biosecurity Initiative, including an AI Biosecurity Lab; £120 million additional for the AI Security Institute; £60 million for a National Cyber Shield; and £70 million for a National Exposure and Real-Time Vulnerability Centre to find weaknesses in critical infrastructure. A further £60 million goes to the Sovereign AI Fund, with £60 million for its research and development procurement scheme and £30 million for local AI partnerships through mayoral strategic authorities.

A distinctively British approach

Healey said AI would transform daily life and that his approach would not leave workers behind while defending the national interest. AI minister Kanishka Narayan said Britain must build the capabilities to protect its people and shape its own future, citing threats from cyber attacks to biological risks.

Source: Computer Weekly, 27 October 2026.