Rachel Reeves is poised to commit the UK to the "fastest AI adoption in the G7" as she outlines her strategy to revitalise Britain’s economy in a significant address.
Delivering the Mais lecture in the City of London, the Chancellor will present her "three big choices" for the decade ahead.
These priorities encompass fostering deeper ties with the European Union, driving the expansion of artificial intelligence and other advanced technologies, and ensuring "growth in every part of Britain".
To support these ambitions, Ms Reeves will announce a £2.5 billion investment in advanced computing, which features a quantum procurement programme valued at "up to" £1 billion, aiming for the UK to "lead the quantum revolution".
The Chancellor is expected to say: “In this changing world, Britain is not powerless. We can shape our own future. Our method is stability, investment and reform – through an active and strategic state.
“Today, I am making three big choices on the greatest growth opportunities for Britain in the decade to come: growth in every part of Britain, AI and innovation, and a deeper relationship with the EU.
“Our plan is clear. To build for growth, to champion innovation, and to make Britain the place where the industries of the future are created.”
Britain’s economy unexpectedly flatlined in January in a weak start to the year ahead of the Iran conflict and worries over soaring inflation caused by rocketing oil prices.
The worse-than-forecast figures from the Office for National Statistics (ONS) fuelled fears that volatility following the Middle East crisis will hit the UK hard against an already sluggish backdrop.
On the AI race, which Ms Reeves sees as key to growth, she will warn the UK faces a choice of either “bury our heads in the sand and leave it to other countries whose values may differ from ours” or “chart our own course”.
“That’s why I am setting out an ambitious plan for the UK to achieve the fastest AI adoption in the G7,” she will say.
“In a world defined by technological change, Britain cannot afford to stand still. With this strategy, I believe we can approach the future with confidence – with the technologies of the future invented, built and deployed here in Britain.”
The tech funding package announced on Tuesday will include a £1 billion new procurement programme for quantum computers, which the Treasury believes will lead to the development of prototypes of the most advanced quantum computers in the world.
A £500 million “sovereign AI fund” will also be launched in April at tech firm Wayve as part of the plans, which will aim to give UK companies access to funding and other support to compete globally.
Technology Secretary Liz Kendall, who is unveiling the new investment alongside the Chancellor, argued that quantum computing would bring with it high-paid jobs and improvements to public services.
“Today’s announcements are an investment in our future – unlocking better health, wealth, and more opportunities for communities across the country,” she said.
The Tories accused the Chancellor of economic mismanagement and said her commitment to closer ties with Brussels signalled a Labour desire to undo Brexit, which the Government has denied.
Shadow chancellor Mel Stride said: “It’s no secret that Reeves and Starmer have wanted to row back on Brexit since day one – and we can expect to hear more detail on Labour’s plan to drag us closer to the EU at the Chancellor’s speech today.
“Labour are desperate to blame anyone but themselves for their economic failures.
“Under increasing pressure having mismanaged the economy, Reeves would rather point the finger at Brexit than accept their poor choices have been a disaster for our economy.”
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