Reeves to pledge ‘fastest AI adoption in G7’ and deeper ties with EU
Rachel Reeves will commit to the UK’s “fastest adoption of AI in the G7” as she lays out her three key priorities for reviving the UK’s stagnating economy in a major speech.
Giving his Mais lecture in the City of London, the Chancellor will set out his “three big options” for the next decade: deepening ties with the EU, expanding artificial intelligence and other technologies and “growth across Britain”.
It will also announce a £2.5bn fund to invest in advanced computing, including a quantum procurement program worth up to £1bn, with the UK set to “lead the quantum revolution”.
The Chancellor is expected to say: “Britain is not powerless in this changing world. We can shape our own future. Stability, investment and reform through an active and strategic state is our way.”
“Today, I make three big choices on the biggest growth opportunities for Britain over the next decade: growth across Britain, AI and innovation, and a deeper relationship with the EU.
“Our plan is clear. To build for growth, support innovation and make Britain where the industries of the future are created.”
Britain’s economy unexpectedly flattened out in January after a weak start to the year ahead of concerns about rising inflation caused by the Iran conflict and skyrocketing oil prices.
Worse-than-forecast figures from the Office for National Statistics (ONS) have raised fears that the surge in the wake of the Middle East crisis will hit the already stagnant UK hard.
Ms Reeves will warn that in the race for artificial intelligence, which she sees as key to growth, the UK faces the choice of either “putting our heads in the sand and leaving it to other countries whose values may differ from ours” or “charting our own course”.
“That’s why I’m drawing up an ambitious plan that will see the UK adopt AI at the fastest pace in the G7,” he will say.
“In a world defined by technological change, Britain cannot afford to stand still. With this strategy, I believe we can approach the future with confidence, with the technologies of the future being invented, built and deployed right here in Britain.”
The technology funding package announced on Tuesday will include a new £1 billion procurement program for quantum computers, which the Treasury believes will lead to the development of prototypes of the most advanced quantum computers in the world.
As part of the plans, a £500 million “government AI fund” will be launched at tech firm Wayve in April, which will aim to give UK companies access to finance and other support to help them compete globally.
Announcing the new investment alongside the Chancellor, Technology Minister Liz Kendall argued that quantum computing would bring high-paying jobs and improvements to public services.
“Today’s announcements are an investment in our future, opening the door to better health, wealth and more opportunity for communities across the country,” he said.
The Conservative Party accused the Chancellor of mismanaging the economy and said his determination to forge closer ties with Brussels signaled Labour’s desire to roll back Brexit, which the Government has rejected.
Shadow chancellor Mel Stride said: “It’s no secret that Reeves and Starmer have wanted to back down on Brexit since day one – and in the Chancellor’s speech today we can expect to hear more details about Labour’s plan to bring us closer to the EU.
“Workers are desperate to blame anyone but themselves for their economic failure.
“Under increasing pressure for mismanaging the economy, Reeves would rather point the finger at Brexit than admit his poor choices have been a disaster for our economy.”
