UK Chancellor's written statement adds £24m to harden public-sector technology in the AI package

A written statement published on 26 October 2026 (HLWS424) sets out a statement by the Chancellor of the Exchequer, John Healey. It says a further £24m will support the systematic hardening of the public sector technology estate. That sum is not in HM Treasury's news story of 24 October 2026.

The statement says the government will provide £10m per year for the AI Economics Institute. HM Treasury's 24 October news story describes funding for that institute as an additional £23 million over the next three years. The same page also says, without naming the institute, that the Chancellor's plans include £10 million per year to lead the UK's work in understanding how AI will reshape jobs and industry. The statement says the government will start by piloting local AI partnerships with Mayoral Strategic Authorities, and it does not give a pound figure for the pilots. The 24 October story lists £30m for those partnerships.

The statement also lists £165 million for a National AI Biosecurity Initiative, including £100 million for an AI Biosecurity Lab and £65 million to strengthen biosurveillance and develop medical countermeasures; an additional £120 million for the AI Security Institute; £60 million for a National Cyber Shield, including a £25 million challenge fund; a £70 million National Exposure and Real-Time Vulnerability Centre; an additional £60 million for the Sovereign AI Fund, including a new focus on physical and industrial AI; a further £60 million for the Sovereign AI R&D Procurement Scheme; £18 million for a UK Advanced Chip Design Academy; £15 million for an AI Challenge Prize, with a first year's focus on health; and a new AI Cyber Security Centre of Excellence in Manchester.

What it means for business: no new legal duty. The statement is a funding plan. Firms in cyber security, biosecurity, chip design and public-sector technology may see UK programmes and procurement. The £120 million for the AI Security Institute does not, in this statement, change the Institute's legal powers.