Chancellor John Healey pledges AI funds to strengthen Britain’s security

Chancellor John Healey pledged at Wednesday’s budget to apply artificial intelligence to strengthen Britain’s security and prosperity amid the accelerating global technology arms race, The Guardian reported on Oct. 24, 2026.

Andy Burnham’s government plans to spend hundreds of millions of pounds on a distinctively British AI strategy intended to capture the benefits of frontier technology. Healey said he would make the largest ever investment to defend against cyber threats and AI-driven disruption. The spending formed part of Healey’s first budget as chancellor.

The budget promises new funding for Britain’s AI Security Institute and other critical institutions. It also includes public money to support beneficial uses of AI across firms, communities, hospitals, schools and the wider economy. Healey said he wanted the budget to protect against AI risks while fostering domestic businesses and talent and reducing reliance on other countries.

He said AI would transform daily life across firms, communities, hospitals, schools and the wider economy. The chancellor wants to make AI a central plank of Labour’s growth plan to raise living standards, back UK businesses and support economic growth.

Security minister Dan Jarvis said the measures would strengthen national security while keeping the UK ahead of those seeking to use AI to cause harm. “I’m proud the UK has repeatedly been at the forefront of global efforts to use AI for the benefit of humankind,” Jarvis said.

The announcement came three months into Andy Burnham’s premiership, as Healey delivered his first budget. Burnham replaced Keir Starmer this summer, and Healey will use his Commons speech to outline the prime minister’s policy priorities. The Middle East war is pressuring the economy and reigniting the cost of living crisis.

Healey vowed to use his first budget to give households and businesses breathing space as war-driven energy costs hit millions of families this winter. Official figures show AI investment helped the UK outperform gloomy forecasts and delivered the strongest G7 growth performance in the first half of the year.

The Iran war is pushing up inflation and dragging down business confidence as AI investment powers UK growth. On Friday, Gulf tensions pushed oil prices to a six-month high. Prices exceeded $117 a barrel at one point.

Growing fears cover national security and critical industries from cyber attacks, rogue IT systems and job losses as companies invest in machines rather than humans. Barclays plans to cut 5,000 jobs as bosses link cost savings to AI rollout across the bank to efficiency gains.

The Treasury would back up to £300m in public-private funding for a new AI Biosecurity Lab to protect people from emerging biological threats. The government would spend £10m annually to lead UK research into how AI will reshape jobs and industry, addressing concerns about potential job disruption. New investments would fund AI chip design in Edinburgh and an AI Centre of Excellence in Manchester to help the UK harness the technology’s benefits.

Defence secretary Wes Streeting warned on Thursday that UK households should prepare for increasing risks from weather, cyber attacks or other serious emergencies. The government advised stocking supplies for 72 hours in a campaign called Be Ready.

The Guardian published its report on Oct. 24, 2026. Healey delivered the budget on Wednesday. Streeting warned households on Thursday. Gulf tensions pushed oil prices higher on Friday.

Websites worldwide went dark earlier in the week after a serious flaw was found in a programming language underlying much of the internet. The flaw’s discovery was linked to rapid AI advances.