Blog This week has seen the government announce significant updates on critical breakthrough technologies: fusion, quantum and AI.
Science and Research Minister Lord Vallance led the release of the UK Fusion Strategy, while the Chancellor unveiled new investment for quantum and AI during her Mais Lecture. A new £500 million fund for British AI start-ups, Sov/AI, was also launched last week.
It recognises industry calls to improve conditions in which UK-based companies can grow in the UK. It has long been the case that while the UK has a depth of expertise in scientific research, there has been a challenge in keeping homegrown companies based in Britain, with many seeking investment elsewhere or floating in the US.
The government is therefore stepping up efforts to set out clear roadmaps, strategies, and mechanisms that give investors and entrepreneurs the confidence and clarity needed to build and succeed in the UK.
One of the areas of focus is fusion energy. With the potential to revolutionise the energy system, the government is keen to maximise the UK’s opportunities in the sector.
The UK Fusion Strategy set out an ambitious roadmap to transition from scientific research to industrial leadership and commercial deployment. It reaffirmed the government’s commitment to fusion and outlined how the £2.5 billion pledged last year will be spent.
Tokamak Energy, which we have worked with since 2024, are at the forefront of the UK’s fusion and high temperature superconducting (HTS) capabilities, which will play an important role in the Strategy as a whole.
We recently convened a roundtable with the Minister for Investment, Lord Stockwood, and Warrick Matthews, Tokamak Energy CEO, where policy officials, investors and business leaders discussed mechanisms that can attract investment into the UK.
There was genuine enthusiasm about the R&D and hardware that already exists in the UK, and on the opportunity for government and the private sector to work together, ensuring the UK is not left behind as allies and others make progress on the same technologies.
The Chancellor’s Mais Lecture signalled further investment into these breakthrough technologies. £2 billion was announced to help the UK make significant progress on quantum – labelled by many as the ‘next AI.’ If investment goes as planned, there’s a £200 billion boost due for the UK economy by 2045.
The challenge now is to ensure the strategies and planned investments translate into genuine economic growth – this can only be achieved if the tech entrepreneurs who have historically pivoted to the US, stick in the UK. And this objective can only be reached if the government follows through on these commitments; gives the private sector the opportunity to succeed; and remains agile to pivot when new tech developments are made.
Industry should be clear about what it needs in terms of support, commitment and certainty. Meanwhile, government has a role to play in creating long-term policy certainty, and confidence that there will be the investment, support and supply chain ready to help bring these technologies to life.
