In that vein, the government has trailed a £600 million spending package to protect the U.K. from AI risks while growing its own share of the sector, calling it a “distinctively British” approach to mitigating risks from the technology while capturing the benefits.
The question now is whether more measures to support the U.K.’s tech and AI sector will come on Wednesday, with trade groups calling for bold moves to lower energy costs, tackle energy and planning delays, and help firms invest in AI and upskill workers.
Startups are also hoping for tax relief and further reforms to regulation and procurement rules. A relief for founders who re-invest their earnings in the U.K. has been a particular demand from the startup community, which has already bagged a win after Healey ruled out raising capital gains tax.
AI is also likely to play a significant role in the government’s plans to make Whitehall more efficient, as it did under Reeves.
The sector is also closely watching how the chancellor plans to meet his defense spending targets, in the hopes that drone makers and military tech firms might benefit from the uplift.
Trade Reporter Caroline Hug
I’m looking out for the chancellor’s VAT crackdown on foreign sellers, who register as U.K. based companies to avoid paying the tax. Healey is expected to make online marketplaces like Amazon, eBay and Temu responsible for collecting tax owed by all retailers.
We’re also waiting to see whether the government has more information on its de minimis crackdown, including whether it will introduce a handling fee for small packages below £135. The EU already has one in place.
Finally, we’ll be looking out for any more detail on the government’s suspension of tariffs on more than 100 food, drink, fuel and fertilizer products.