Quantum and artificial intelligence (AI)
Given the Chat-GPT fever that seems to have hooked Silicon Valley and beyond in recent weeks, it was almost inevitable the chancellor would weave AI into his plan to transform the UK into a tech powerhouse.
He did just that, announcing an ‘AI sandbox’ to encourage ground-breaking research into the technology. Other plans include trialling faster approaches to help AI businesses get “cutting edge” products to market, such as changing the rules that govern intellectual property, while the Manchester Prize, a £1m pay-out up for grabs every year for the next decade for the best innovator in AI on UK soil, was also unveiled.
But the chancellor didn’t stop there, with a program to plough £2.5bn into quantum computing by 2033 also revealed. This will focus on both the engineering and research investments, as well as funding for businesses that are investing in quantum technologies.
But, given the very real threat that quantum computers pose to present-day cryptographic security, even before these machines arrive, detail on funding was murkier. We wait with baited breath on how the government plans to tackle that particular issue.
What was missed?
Plenty more was announced, including reforms to the R&D tax credit for small- and medium-sized businesses (SMEs). If an SME spends 40 per cent or more of their total expenditure on R&D, they will be able to claim a credit worth £27 for every £100 spent.
But there were also some notable absences when it comes to the tech sector. In particular, there was no mention of a semiconductor-related strategy or funding. Given the criticism the government has faced in this department, its omission was quite surprising.
Overall, Hunt delivered a Budget that many expected, but coupled with the government’s swift action to bail out SVB and protect UK tech, the road ahead for the sector looks more promising than it did last week.
We’ll be keeping a close eye on how things develop.
