According to leading audit, tax and advisory firm Blick Rothenberg, Chancellor Rachel Reeves should use the autumn budget to set out how the government plans to use the £2 billion earmarked for the UK’s AI Opportunities Action Plan.
Evelina Panchal, a director at the company, said companies urgently needed clarity on how funds would be allocated, arguing that proper investment planning could enable transformative gains for the economy.
“Microsoft research suggests AI represents a £550 billion opportunity for the UK over the next decade,” she said. “To support the tech sector, Rachel Reeves should confirm how the £2bn pledge will be used.”
The AI Opportunities Action Plan announced in the 2025 Spending Review aims to strengthen the UK’s national AI infrastructure and includes proposals for AI Growth Zones where planning rules would be relaxed to accelerate the development of data centers and computing facilities. Panchal said tech companies need details on schedules, locations and access if they want to benefit from the program.
The technology sector contributed £71 billion to the UK economy in 2023 and employed 1.77 million people in 2024. Panchal said the potential impact of the £2 billion investment depended heavily on how quickly the money was released and whether the government provided a detailed roadmap.
“Infrastructure gaps, skills shortages and slow business adoption remain the biggest challenges,” she warned. “Reeves needs to establish clear timelines and implementation plans.”
Panchal also urged the Chancellor not to make any budget changes that could undermine the UK’s attractiveness as a hub for digital entrepreneurship.
She said equity-based incentive schemes such as Enterprise Management Incentives (EMIs), which are widely used in the technology and AI industries, must not be restricted as they are critical to attracting skilled talent in a competitive global market.
“Rachel Reeves should not introduce any further changes to capital gains tax, exit tax or wealth tax,” she added. “If it does so, it risks wiping out the remaining entrepreneurial spirit in the technology sector, with negative consequences for innovation and economic growth.”
She said the UK must remain “a supportive and fair environment for technology companies and their founders” to ensure they continue to operate in the UK and bring vital investment, jobs and revenue.
