John Healey’s first Budget committed more than £700m to AI safety and British tech firms, including a new £40m unit to detect and respond to AI agents operating outside their intended controls. Our co-founder, Tarek Nseir, welcomed the focus on safety in City AM’s coverage.
“The government is right to take AI safety seriously, and the Budget is an opportunity to make responsible adoption a practical business priority too.”
Tarek Nseir, Co-Founder, Valliance
Government has set the direction. Adoption is down to businesses.
Tarek’s full comment on the Budget’s AI measures:
“The government is right to put security and sovereignty at the centre of its AI approach. An extra £120 million for the AI Security Institute and £40 million to respond to agentic security incidents show the government knows where the risk is heading. AI agents that act on their own inside businesses are arriving faster than the rules for them.
“The Sovereign AI Unit, backed by a further £140 million to invest in strategic British AI firms, and the commitment to keep the most sensitive data under British control give businesses a clearer sense of where the UK is heading. The British Data Centre Covenant, AI Challenge Prize and Union Learning Fund build on that with investment in infrastructure and skills.
“The government has set a clear direction, but adoption is down to businesses. Most are held back by something more ordinary than regulation, knowing where AI fits in their operations and how to bring their people with them. The firms that work that out this year will be well ahead of those still waiting for more clarity from Westminster.”
City AM’s report, “Budget 2026: Healey bets £700m on AI to boost British tech firms” by Saskia Koopman, was published on 28 October 2026.
Read the full article in City AM
