In a forward-thinking move, Chancellor Philip Hammond has unveiled a budget with significant investments in artificial intelligence, 5G mobile networks, and digital skills. The aim is to strengthen the UK’s position as a global leader in technology and innovation.
The announced funding includes substantial amounts directed towards AI, electric vehicle infrastructure, and a surge in educational initiatives to boost digital and construction skills. This budget represents a crucial step in preparing for a future increasingly dominated by technology.
Investment in Artificial Intelligence
Chancellor Philip Hammond has announced a substantial investment of £75 million in artificial intelligence (AI) as part of the latest budget. This funding aims to place the United Kingdom at the forefront of technological innovation and development in AI. The government aspires to capitalise on the UK’s current competitive advantage in this field, enhancing both commercial and technical capabilities.
However, some experts believe the funding may fall short of what is necessary. Fergus Caheny, head of the technology group at Smith & Williamson, stated, “Any amount is welcome as it puts the issues front and centre. However, the aim seems to be to grab headlines, rather than have a material effect.” This sentiment is echoed by other professionals in the sector who argue that substantial investments by global leaders like Google should serve as a benchmark for the UK.
Advancements in 5G Mobile Networks
The budget also earmarks £160 million for the development of next-generation 5G mobile networks. Claire Jolly, head of TMT in the North West at Deloitte, emphasised the significance of this investment: “Connectivity is the foundation for modern businesses in every sector, and this clear, specific commitment to providing next-generation 5G mobile networks is exactly what the Northern Powerhouse needs in order to thrive.”
This initiative underscores the government’s recognition of the essential role that robust and high-performance 5G networks will play in bolstering the digital capabilities of businesses across the nation. This is expected to drive significant growth and innovation within various industries.
Nevertheless, there are concerns about whether the allocated funds will be adequate to meet the ambitious goals set by the government, particularly with respect to achieving widespread 5G coverage and performance excellence.
Electric Vehicle Infrastructure
In addition to AI and 5G, the budget allocates £400 million for electric car charge points.
A further £100 million has been dedicated to boosting the adoption of clean cars, aiming to reduce the nation’s carbon footprint and encourage sustainable transportation solutions.
Moreover, the budget outlines regulatory changes to facilitate the on-road testing of driverless cars, with a target of making them a common sight on UK roads by 2021. Russell Goodenough, client managing director for the transport sector at Fujitsu, remarked, “We’re seeing a clear move towards increasingly connected and autonomous cars becoming the norm in just a few years’ time.”
Enhancing Digital and Construction Skills
A significant portion of the budget focuses on upskilling the workforce, particularly in the realms of digital and construction skills. £100 million has been allocated to train an additional 8,000 computer science teachers and to establish a National Centre for Computing.
An additional £76 million has been earmarked to boost both digital and construction skills, addressing the growing demand for a highly skilled workforce capable of navigating the challenges posed by digital transformation and automation.
This new investment and the creation of a retraining partnership with the TUC and the CBI are essential in preparing the workforce for future technological shifts. BT chief executive Gavin Patterson stressed the importance of this investment, saying, “As a country, we need to build on our strengths as a tech leader and ensure that we don’t just cope with the challenges ahead but that we inspire, lead and shape the future.”
Support for Small and Medium-Sized Enterprises (SMEs)
Particular attention has been given to supporting small and medium-sized enterprises (SMEs) through targeted investments. This support is seen as crucial in helping SMEs adapt to the evolving technological landscape.
Jonathan Richards, CEO of breatheHR, highlighted the importance of upskilling and retraining to mitigate job losses due to automation. He noted, “Every business owner I talk to tells me the skills gap is their number one concern, especially as we prepare to leave the EU.”
Leon Ifayemi, CEO and founder of SPCE, expressed a desire for even more focused support, particularly for tech start-ups and scale-ups. He stated, “Dynamic tech start-ups and scale-ups should have been bolstered by more directed policies to improve access to skills, investment and collaboration in the immediate future.”
Driverless Car Technology
The budget also includes plans to advance driverless car technology. Regulatory changes will allow for increased on-road testing with a vision of integrating autonomous vehicles into everyday life by 2021.
Russell Goodenough of Fujitsu has welcomed this move, pointing out that the transport sector must come together to define how this technology will be implemented in the UK.
The unified approach is aimed at ensuring that the deployment of driverless cars is both effective and beneficial across various segments of society.
In summary, the new budget allocations lay a strong foundation for the future of technology and innovation in the UK. By investing in AI, 5G, digital skills, and electric vehicles, the government aims to drive economic growth and maintain competitive advantage.
While some experts argue that the funding may not be sufficient, the overall direction marks a positive beginning towards a more technologically advanced society. The true impact of these investments will unfold in the coming years.