UK's injects GBP £500 million into quantum computing
The UK government's latest Industrial Strategy, unveiled with a promise of GBP £6.6 billion for the British Business Bank and a targeted GBP £500 million injection into quantum computing, has been broadly welcomed by the tech and investment communities, albeit with calls for more substantive action in several areas.
Sam Hields, Partner at early-stage tech investor OpenOcean and a co-founder of the York Angels, described the strategy as a marked improvement in ambition and clarity. "This modern Industrial Strategy is much closer to what we need: clear-eyed, more ambitious, and focused on making the UK a place where real innovation doesn't just happen by accident, but by design," Hields asserted. He highlighted the value of shifting support to sectors such as quantum computing, advanced manufacturing, and energy, arguing that the country can no longer afford to see its most innovative ideas commercialised elsewhere.
The British Business Bank's augmented capacity, now standing at GBP £25.6 billion with a fresh GBP £6.6 billion aimed at growth-focused investments, was called "critical but overdue" by Hields. He noted that the move represents a significant, if belated, endorsement of venture capital investment—an acknowledgment that quality technical ideas require sustained funding to thrive domestically. However, Hields also identified persistent structural barriers, such as the perception of venture capital's risk profile relative to traditional investment routes, which the government needs to continue dismantling.
While Hields praised the commitment to quantum technologies, he questioned whether the GBP £500 million allocation—although a "start"—would truly enable Britain to compete in a field already buoyed by substantial investments from countries like France and Germany. He warned, "Quantum represents precisely the kind of asymmetric opportunity demanding patient capital and substantial, sustained investment far beyond initial public commitments." Without a robust programme for scaling up research and a clearer path for market demand, the UK's ambitions may fall short, he added.
Execution, rather than policy, will be the real litmus test for the strategy, in Hields's view. He called for operational changes that target long-standing bottlenecks: "Policy statements alone won't build world-leading companies—risk-taking entrepreneurs backed by real capital will." Faster grid connections, lower energy costs, and the fostering of regional innovation clusters were cited as practical steps in making the UK a destination for high-impact startups. Hields concluded, "Government's role isn't to micromanage innovation, it's to create an environment so conducive that bold entrepreneurs have no hesitation in choosing Britain to start and scale transformative businesses."
From within the quantum technology sector, Lisa Matthews, COO and MD of KETS Quantum Security, offered a sharply focused critique on the conditions necessary for success. Matthews emphasised that the impact of the government's GBP £500 million quantum pledge would depend heavily on addressing three often overlooked areas: talent access, funding bureaucracy, and the broader technology ecosystem.
Matthews argued that quantum ventures depend on a variety of skill sets and not just technical expertise. "Cutting-edge companies don't just need quantum physicists. They need commercial leads and sales superstars. Right now, it's too difficult to secure visas for this kind of non-technical yet business-critical talent," she said. For the UK to compete globally, talent pipelines for all roles must be streamlined.
She also called for greater efficiency in disbursing government funds to emerging technology businesses. Matthews believes that R&D tax credits require reform to reflect the needs of startups. "The likes of Innovate UK need more specialist staff that understand the marketplace and technologies within it. Otherwise, too much time will be wasted on box-ticking, rather than building for a quantum future," she cautioned.
Further, Matthews underlined the necessity of investing in the complete ecosystem around quantum computing, particularly communications infrastructure. "The powers that be behind the GBP £500 million quantum pledge need to think full stack... without investment in the full ecosystem, it simply won't happen. That includes fully secure communications infrastructure that connect quantum computers to each other." She warned of the coming era in which existing forms of encryption will be rendered obsolete by quantum advances, highlighting the urgency for coordinated funding and regulation.
The consensus from both the investment and technology sectors is clear: the new Industrial Strategy's scale and direction are broadly positive, but successful implementation will require a more holistic and expeditious approach—one that addresses longstanding bureaucratic hurdles, prioritises the full diversity of talent, and commits to sustained, ecosystem-wide investment.
