UK outlines £600m-plus AI plan, including support for small businesses

UK Government · Source published 2026-10-24

On 24 October, the UK government outlined a package of AI investment it plans to develop further in the forthcoming Budget. One measure particularly relevant to smaller firms is £30 million for local AI partnerships. These would bring together mayoral authorities, councils, businesses and educators to support AI adoption and workforce skills.

The plans also include an extra £60 million for the Sovereign AI Fund to invest in promising British AI companies, £60 million for research and procurement, and a £15 million prize for practical AI innovations, initially in healthcare.

Security accounts for much of the wider package. The government announced £120 million more for the AI Security Institute, £60 million for a National Cyber Shield and £165 million for a biosecurity initiative. That includes a £100 million AI Biosecurity Lab intended to improve the detection of biological threats. According to the Cabinet Office, OpenAI and Anthropic will contribute up to £200 million in computing and model credits to support the lab, with Google DeepMind collaborating on research.

These are announced plans and commitments, not an open funding scheme for individual businesses. Application dates and SME eligibility have not yet been set out in the published announcements.

Why this matters

For UK small businesses, the £30 million local partnerships are the part to watch: they could lead to useful local training, advice and adoption support. That is a potential benefit, not a confirmed entitlement. Check official government and local authority updates for eligibility before budgeting for any grant or free tools.

Sources

HM Treasury — Chancellor unveils Britain's ambitious plan for AI · 2026-10-24 ↗

Cabinet Office — Introducing the AI Biosecurity Lab · 2026-10-24 ↗

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