Economy · Growth & GDP · 24 October 2026
Chancellor to announce major AI investment package next week
HM Treasury has confirmed the Chancellor will unveil a significant AI investment package next week. The plans aim to support British industry, raise living standards, and enhance national security. Funding includes £10 million per year for research on how AI reshapes jobs.
HM Treasury has announced that the Chancellor will set out a major package of investment designed to unlock opportunities in artificial intelligence. The measures intend to scale up UK firms and strengthen security infrastructure. According to the department, the strategy seeks to boost living standards and support British industry while addressing national security needs.
The Chancellor is set to make AI a part of his Budget on 24 October 2026. Under the plans, £10 million per year will be allocated to study how AI will reshape jobs and industry. New investments are also directed towards boosting UK chip design and cyber defence capabilities. John Healey MP, the Chancellor of the Exchequer, stated: "I understand and share the concerns of working people, so I am setting out a distinctively British approach to AI - one that doesn't leave workers behind and defends our national interest, while ensuring the benefits of AI-enabled growth are felt right across the country."
Specific facilities are being established in key cities to develop talent and capabilities. A new AI chip design capability is being set up in Edinburgh, while a new AI Centre of Excellence will be created in Manchester to develop talent. Additionally, a new AI Biosecurity Lab will be established to protect against biological threats. Kanishka Narayan, the AI Minister, described the lab as a major new global institution bringing together scientific expertise to protect people from emerging biological threats.
Written by StreetOwl from HM Treasury’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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