The NHS just scored big in this year’s Spending Review, landing about £10 billion for technology and digital upgrades, locked into a broader £29 billion funding boost for the health service.
In her speech to Parliament, Chancellor Rachel Reeves emphasized that this is a 50% bump in the NHS’s tech budget. “We’re investing £10 billion to pull our health system into the digital age,” she said, highlighting features like the NHS app, which will let patients manage prescriptions, get test results, and book appointments all in one place.
Amid broader plans covering energy, transport, and education, Reeves made it clear that investing in technology is crucial for strengthening digital foundations and modernizing public services. The government previously committed to spending roughly £86 billion on science and technology this Parliament. Now, they’ve added £1.2 billion during this review to push forward digital priorities, supported by a £3.25 billion Transformation Fund.
Reeves also announced that research and development funding will hit £22 billion per year by the end of the review. “We’re backing our innovators, researchers, and entrepreneurs,” she stated, and noted the promise of home-grown AI for job creation and investment. To bolster this, she unveiled £2 billion to support the government’s AI Action Plan.
The breakdown includes £500 million for the R&D Missions Accelerator Programme, £1 billion for scaling the Advanced Research and Invention Agency (ARIA), and £750 million for a new research supercomputer at Edinburgh University, among other investments.
Shifting gears to defense, Reeves highlighted an £11 billion increase in spending, allocating £600 million to security and intelligence agencies, which includes funding for the National Cyber Security Centre and National Protective Security Authority.
For the tech backbone of society, £1.9 billion will support Building Digital UK (BDUK) to ensure gigabit broadband reaches 99% of UK premises by 2032, particularly focusing on Scotland and Wales, plus efforts to improve 4G coverage through the Shared Rural Network.
The response from the tech sector has been positive, especially regarding the AI and NHS funding. James Clark from Spencer West LLP praised the government for finally backing up its AI Action Plan with solid funding. He pointed out that while the UK is stepping up its game in the global AI race, challenges remain—especially in financing innovation and building sustainable data centers.
Flann Horgan from NTT Data UK & Ireland stressed that you can’t build a digital NHS on outdated systems. He cited successful AI applications already in use to help diagnose cancer, but warned that without addressing data silos, AI could complicate rather than enhance care.
Mark Boost, CEO of Civo, noted that while the £86 billion funding looks promising, how it’s spent is crucial. He sees potential in local innovation partnerships but cautioned that these must connect with a national digital strategy focused on security and fair competition among UK firms. He advocates for investing in resilient AI infrastructure to empower local innovators against the dominance of big tech.
