Healey vows AI will not ‘leave workers behind’ in £600m Budget package
John Healey has vowed not to let AI “leave workers behind” as he unveiled more than £600m in investment ahead of next week’s Budget, amid mounting concerns over AI-driven job losses. The Treasury will commit £10m a year to studying the impact of AI on employment, alongside hundreds of millions of pounds for cyber security, [...]
Finance Minister John Healey pledged to prevent artificial intelligence from "leaving workers behind" with a £600 million investment package ahead of next week's Budget. The Treasury will allocate £10 million annually to research the impact of AI on employment, alongside billions for cybersecurity, British tech companies, and domestic AI infrastructure.
This announcement comes shortly after Barclays announced plans to cut 5,000 jobs due to AI-driven efficiency measures, intensifying concerns about AI-induced redundancies across major British employers.
Healey emphasized a "distinctively British approach to AI," aiming to harness the technology's potential to spur economic growth while safeguarding workers and national interests. The package includes an additional £23 million over three years for the AI Economics Institute to study AI's effects on productivity and jobs. The largest portion of funding, £165 million, will bolster Britain's defenses against AI threats through a National AI Biosecurity Initiative, including a new laboratory to detect biological threats and develop medical countermeasures.
Up to £200 million in AI model credits from OpenAI and Anthropic, along with partnerships with Google DeepMind and Basecamp Research, will also be provided.
Additionally, £120 million will support the AI Security Institute, £60 million will establish a National Cyber Shield using AI agents, and £70 million will fund a center to identify vulnerabilities in critical national infrastructure. The Chancellor committed an extra £60 million to the Sovereign AI Fund to support British AI companies, expanding its scope to robotics, autonomous systems, and advanced manufacturing.
AI Minister Kanishka Narayan stressed the importance of not repeating the Industrial Revolution's worker hardships by avoiding a similar transition. The package also includes £30 million for local AI partnerships, a cyber security training center in Manchester, and £15 million for an AI innovation competition addressing health challenges.
TechUK chief executive Julian David welcomed the investment, stating it would enable British AI companies to thrive locally.
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