Quantum computing secotr reacts to UK’s new £2.5B strategy

The UK government has pledged to invest £2.5bn in quantum computing over the next 10 years, Chancellor Jeremy Hunt announced today.

The programme forms part of the new Spring Budget, which aims to reduce inflation and the risk of a recession. 

The British tech sector will play a central role in the plan. As part of a goal to make the UK a “science and technology superpower,” Hunt wants to build a world-leading “quantum-enabled economy” by 2023.

To create this, the government is more than doubling its previous funding commitment to the field. It aims to attract another £1 billion in private financing.

“The next step is for UK VC funding to dramatically increase.

The new programme aims to build on strong foundations. The UK currently ranks second in the world for both the number of quantum companies and private investment in the sector. 

Andrew Scott, a founder partner at 7% Ventures, an early-stage fund that’s backed British quantum startups, said the new investment is “vital for future UK prosperity.”

Scott echoed the government’s call for further private sector financing.

The next critical step to support the Prime Minister’s 10-year plan for the UK to become a ‘tech superpower’ is for UK VC funding to dramatically increase,” he told TNW.

In particular, Scott hopes for extensive growth in deeptech and later-stage Series A+ funding. To foster this, he wants regional pension funds to dedicate a percentage of their resources to deeptech VC investment.

“Someone like the British Business Bank could manage and deploy to VC funds, much as they already do via the ECF (Enterprise Capital Funds) and BPC (British Patient Capital) programmes,” Scott added.