The UK government has pledged to invest £2.5 billion in quantum computing over the next 10 years, Chancellor Jeremy Hunt announced today.
The plan forms part of a new spring budget aimed at reducing inflation and the risk of recession.
Britain’s tech sector will play a central role in the plan. As part of its aim to make the UK a ‘science and technology superpower’, Hunt wants to build a world-leading “quantum economy” by 2023.
To create this, the government is more than doubling previous funding commitments to the sector. It aims to attract a further £1bn of private funding.
This is your last chance to join TNW València.
Get a last minute 30% discount on your ticket now.
“It’s the next step For the dramatic increase in UK VC funding.
The new program aims to build on solid foundations. The UK currently ranks second in the world in both the number of quantum companies and private investment in the sector.
Andrew Scott, founding partner of 7% Ventures, an early-stage fund that backs UK quantum startups, said the new investment was “vital to the UK’s future prosperity”.
Scott responded to the government’s call for further funding for the private sector.
“The next important step to support the Prime Minister’s 10-year plan for the UK to become a ‘tech superpower’ is a dramatic increase in UK VC funding,” he told TNW.
In particular, Scott hopes for a significant increase in deep technology and subsequent rounds of Series A+ funding. To facilitate this, he wants regional pension funds to commit a percentage of their resources to Deeptech VC investments.
“Someone like the British Business Bank could manage and deploy VC funds, as they already do with the ECF (Enterprise Capital Funds) and BPC (British Patient Capital) programs,” Scott added.
The government was also advised to be patient. Sebastian Weidt, CEO of Universal Quantum at the University of Sussex, says the funding needs a long-term vision.
“Quantum computing is a marathon, not a sprint,” Waid told TNW. “Therefore, we need to support the wide range of very promising approaches to quantum computing that we have access to across the UK. And we must avoid focusing only on the short term.”
To support this, the government has made a number of promises around research and upskilling.
“I want to see how we can continue to welcome the best talent in the world.
In addition, the program includes a number of international cooperation commitments. These include funding for R&D collaborations with other countries, as well as pledges to attract and support talent and companies from abroad.
James Palace-Dimmock, CEO Quantum motionwhich recently raised a UK record £42m, argues that the ability to work across borders is critical to the industry.
“Manufacturing and talent are two key areas where the benefits of working together far outweigh the risks,” he said. “And I’m very keen to see how we can continue to welcome the world’s best talent to the UK to allow us to continue to accelerate the delivery of these enabling technologies.”