Chancellor Rachel Reeves should use the Autumn Budget to outline how the government plans to deploy the £2bn allocated to the UK AI Opportunities Action Plan, according to leading audit, tax and advisory firm Blake Rottenberg.
Evelina Panchal, the company’s director, said companies urgently need clarity on how to allocate funding, arguing that proper investment planning can unleash transformative gains for the economy.
“Research by Microsoft indicates that AI represents a £550 billion opportunity for the UK over the next decade,” she said. “To support the tech sector, Rachel Reeves must confirm how the £2bn commitment will be used.”
The AI Opportunities Action Plan, announced at the 2025 Spending Review, aims to boost the UK’s national AI infrastructure and includes proposals for AI growth areas, where planning rules would be relaxed to accelerate the development of data centers and computing facilities. Tech companies need details about schedules, locations and access if they want to take advantage of the program, Panchal said.
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 largely on how quickly funds were released and whether the government provided a detailed roadmap.
“Infrastructure gaps, skills shortages and slow business adoption remain the biggest challenges,” she warned. “Reeves must establish clear timelines and implementation plans.”
Panchal also urged the Chancellor not to introduce budget changes that would undermine the UK’s attractiveness as a hub for digital entrepreneurship.
She said equity-based incentive schemes such as Enterprise Management Incentives (EMIs) – widely used in the technology and AI sectors – should not be restricted, as they are essential to attract specialist talent in a competitive global market.
She added: “Rachel Reeves should not make any further changes to capital gains tax, exit taxes or wealth taxes.” “If it does, it risks killing what remains of entrepreneurial spirit in the technology sector, with negative consequences for innovation and economic growth.”
She said the UK needed to remain a “supportive and fair environment for technology companies and their founders” to ensure they can continue to operate in Britain, bringing in investment, jobs and essential revenues.
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