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John Healey pledges to use budget to harness power of AI to bolster Britain’s security
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John Healey has pledged to use Wednesday's budget to harness artificial intelligence for Britain's security and prosperity. The chancellor will commit hundreds of millions of pounds to a "distinctively British" AI approach. He called it the biggest ever investment against cyber risks and AI's disruptive potential.
The budget comes three months into Andy Burnham's premiership, after he replaced Keir Starmer this summer. Healey faces a volatile backdrop as Middle East war sends shockwaves through the global economy. Oil prices surged above $117 a barrel on Friday, the highest in six months.
Healey promised fresh investment for Britain's AI Security Institute. New measures include funding for AI chip design in Edinburgh and an AI Centre of Excellence in Manchester. The government will also spend £10m a year to understand how AI reshapes jobs and industry.
Official figures show AI investment helped the UK deliver the strongest growth in the G7 in the first half of this year. But fears grow over cyber-attacks and job losses. This week Barclays announced 5,000 job cuts as AI rollout boosts efficiency.
Healey said: "AI will transform daily life: every firm, community, hospital, school and every aspect of our economy can benefit." He stressed a "distinctively British approach" that does not leave workers behind and defends the national interest. He aims to cut dependency on other countries advancing in AI.
The chancellor vowed to provide households and businesses with "breathing space" as surging energy costs hit families this winter. He will use his Commons speech to flesh out Burnham's policy priorities. The budget is expected to make AI a central plank of Labour's growth plan.
