The UK Government is preparing new investment in artificial intelligence to strengthen national security and support domestic technology businesses, with several measures expected to feature in Chancellor John Healey’s upcoming Budget.

The proposed package includes additional support for the AI Security Institute, investment in AI chip design in Edinburgh and plans for a new AI Centre of Excellence in Manchester.

Ministers are also considering up to £300 million in public-private investment for an AI Biosecurity Lab, intended to help identify and protect against emerging biological threats. A further £10 million annually is planned to study AI’s effects on employment and industry.

The proposals come as policymakers face growing concerns about cyberattacks, the security of advanced AI systems and potential disruption to jobs as businesses adopt new technologies.

The Government says its approach aims to support innovation while protecting national interests and reducing reliance on overseas technology providers.

The measures are part of the wider political and economic debate ahead of the Budget on 28 October 2026. Final funding details and implementation plans will determine how quickly the proposed investments move forward.