Chancellor urged to use AI to ‘Make Britain Great Again’ as Budget looms

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 artificial intelligence may be the only route to growth in a budget constrained by Labour’s tax promises.

These calls come as the government prepares to announce thousands of new jobs linked to artificial intelligence and billions of pounds of investment in an attempt to boost productivity and restart the faltering UK 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 in developing new medicines, treatments and advanced medical technologies.

Patrick Sullivan, CEO of the Parliament Street think tank, said Reeves’ financial room for maneuver was very limited.

He said: “With Labour’s ridiculous manifesto pledge ruling out a rise in income tax, the Chancellor is now forced to find a quick fix to fill a black hole entirely of her own making.” “The only saving grace is the emergence of mass adoption of AI – technology that can provide huge efficiencies when the government needs them most. This is Labour’s opportunity to show that it understands private enterprise and realizes that AI can make Britain great again.”

But while supporters say investment in AI will be essential to unlock long-term growth, cybersecurity experts warn the technology is also exposing the UK to a growing wave of digital threats.

Billions in AI funding must be aligned with a national defense strategy, said Graeme Stewart, head of public sector at Check Point Software.

“The case for investing in AI to drive growth is clear, but very little has been said about cyber and regulatory risks,” he said. “Criminals have already shown that nothing is off limits – from the NHS to nurseries to local councils. Mass deployment of AI must be supported by a robust plan to protect critical national infrastructure.”

Stewart added that the government must set out how it intends to defend both public services and the private sector against AI-powered cyber attacks, warning that the threat landscape is becoming “increasingly lethal”.

Business leaders also stressed the need for Reeves to rebuild trust with employers following a £25bn National Insurance increase last year, which many businesses are still digesting.

Kenny Macaulay, CEO of accounting software platform Acting Office, said investment in AI can help stimulate hiring and productivity – but only if it is coupled with clearer support for employers.
“With businesses continuing to suffer from increased NI, the Chancellor has a difficult task to restore the confidence of the private sector,” he said. “Nationwide deployment of AI and new infrastructure can help unlock growth, but only in conjunction with a plan to get companies hiring again.”

Macaulay also said the chancellor must recognize the role of financial services and accounting firms in driving growth and regulatory compliance, and urged the profession to embrace artificial intelligence to streamline processes and improve client service.

With the Budget deadline just hours away, the message from industry is consistent: AI represents one of the few remaining tools available to drive growth – but a successful rollout requires ambition, security and renewed confidence from business.