Chancellor Rachel Reeves is being urged to seize the opportunity and use artificial intelligence to “make Britain great again” as business leaders and technology experts warn that AI may be the only route to growth in a Budget constrained by Labor’s tax promises.
The calls come as the government prepares to announce thousands of new AI-related jobs and billions of pounds in investment to boost productivity and revive Britain’s faltering economy. Measures expected on Wednesday include the creation of a new AI growth zone in south Wales, expected to create more than 5,000 jobs over the next decade, and £137 million to support leading scientists to develop new medicines, treatments and advanced medical technologies.
Patrick Sullivan, CEO of think tank Parliament Street, said Reeves’ fiscal space was severely limited.
“Faced with Labour’s absurd election promise to rule out income tax rises, the Chancellor is now forced to cobble together a quick solution to plug a black hole entirely of her own making,” he said. “The only saving grace is the advent of mass adoption of AI – a technology that can deliver huge efficiencies when the government needs them most. This is Labour’s chance to show that it understands private business and recognizes that AI really can make Britain great again.”
But while advocates say AI investments will be essential to enabling long-term growth, cybersecurity experts warn that the technology is also exposing the UK to a growing wave of digital threats.
Graeme Stewart, head of public sector at Check Point Software, said billions in AI funding must be accompanied by a national defense strategy.
“The case for investing in AI to drive growth is clear, but very little has been said about the cyber and regulatory risks,” he said. “Criminals have already shown that nothing is off limits – from the NHS to nurseries to local governments. Mass adoption of AI must be supported by a robust plan to protect critical national infrastructure.”
Stewart added that the government needed to set out how it planned to defend both public services and the private sector against AI-powered cyberattacks, warning that the threat landscape was becoming “increasingly lethal”.
Business leaders also stressed that Reeves needed to rebuild employers’ confidence following last year’s £25bn rise in national insurance, which many companies are still absorbing.
Kenny MacAulay, CEO of accounting software platform Acting Office, said AI investments could help boost hiring and productivity – but only if they are accompanied by clearer support for employers.
“With businesses still reeling from the NI increase, the Chancellor has a difficult task ahead of her in regaining the confidence of the private sector,” he said. “A nationwide AI rollout and new infrastructure can help spur growth, but only alongside a plan to rehire businesses.”
MacAulay also said the chancellor must recognize the role of financial services and accounting firms in delivering growth and regulatory compliance, and called on the profession to use AI to streamline operations and improve customer service.
With the budget just hours away, the industry message is consistent: AI represents one of the few remaining levers to drive growth – but successful adoption requires ambition, certainty and renewed business confidence.
