One week to go: Blick Rothenberg’s Budget newsroom is open and gearing up for the Chancellors announcements
The Chancellor, Rachel Reeves should confirm in the Autumn Budget how the £2bn investment from the AI Opportunities Action Plan will be spent, say leading audit, tax and business advisory firm, Blick Rothenberg.
Evelina Panchal, a Director at the firm, said: “Research conducted by Microsoft suggests that AI represents a £550billion opportunity for the UK over the next 10 years. To support the tech sector, Rachel Reeves should confirm how the £2 billion commitment to implement the AI Opportunities Action Plan, will be spent in the Autumn Budget.
“The Spending Review 2025 included the £2bn AI Opportunities Action Plan as a way to boost national AI capabilities, and fund infrastructure. One of the key focuses of the plan is establishing AI Growth Zones, areas where planning rules will be relaxed to make building AI infrastructure easier. But businesses need to know how and where they will be implemented with specifics around timings for them to be able to access these new AI resources.
“Overall, the tech sector contributed £71bn to the UK economy in 2023 and employed 1.77 million people in 2024. It is difficult to estimate the impact this additional investment could have on the tech sector, and wider economic growth as it depends on how quickly the funds are made available and when detailed plans are announced. Infrastructure, skills shortage, and business application are the biggest challenges that Reeves should address in the budget, with clear timelines and plans.”
She added: “The Spring Statement included a number of round tables on the advantages of share-based schemes such as Enterprise Management Incentives (EMIs) that are prevalent in tech sector. Rachel Reeves must ensure there are no prohibitive changes to these schemes in the Autumn Budget, and that they will continue to help the tech sector attract the best AI talent.
“Rachel Reeves should not introduce any further changes to Capital Gains Tax (CGT) or exit and wealth taxes. If she does, that is likely to kill off any remaining entrepreneurial spirit in the tech sector which will in turn have a further negative impact on the economic growth.
“The UK needs to remain a supportive and fair environment for tech companies and their owners to encourage them to continue to operate from here, bringing much needed jobs and revenue.”
Leave a Comment