UK injects £121m into quantum tech
The UK government has pledged £121m to accelerate the development and commercial use of quantum technologies, with ministers touting the potential to crackdown on financial crime and improve public services.
The investment is also projected to create thousands of high skilled jobs across the country.
Announced on ‘World Quantum Day’ on the 14th April, the investment forms part of the government’s wider plan for change, marking the latest phase in its £2.5bn national quantum technologies programme.
The Department for Science, Innovation and Technology (DSIT) said the new funds will be used to support research and build out advanced quantum infrastructure, as well as to expand the talent pipeline in one of the UK’s most strategically important tech sectors.
“Quantum, manipulating the universe at its smallest scale, has the potential to save millions for our economy, create thousands of jobs and improve businesses across the country”, said tech secretary Peter Kyle.
“Backing our world class quantum researchers and businesses is an important part of our plan for change.”
The announcement comes amid growing international competition to commercialise quantum technologies, which harness quantum physics to solve problems that are beyond the capabilities of conventional computers.
Applications range from simulating new drugs, to optimising national energy grids – but the government is placing particular emphasis on financial security and fraud prevention.
Fighting against financial crime
One early use case is already being trialled with support from the national quantum computing centre (NQCC), where HSBC has partnered with researchers to explore how quantum algorithms can spot the subtle data patterns associated with money laundering.
According to government figures, fraud currently costs the UK economy £2.6bn each year.
Quantum computers’ ability to process huge data sets and detect anomalies could revolutionise how financial institutions tackle compliance and criminal activity.
The technology also holds promise for safeguarding infrastructure from cyber attacks, supporting secure communications.
“This project is proof that, with strong support from the government, researchers can harness quantum tech to benefit working people nationwide – in this case, protecting their bank accounts from would-be fraudsters”, the DSIT said in a statement.
Global context and UK position
The UK currently hosts the second largest quantum startup ecosystem in the world, trailing only the US.
In recent years, the government has sought to position the country as a global leader in advanced technologies through coordinate investment strategies.
These have included the national cyber strategy, the AI sector deal, and the 10 year innovation strategy launched in 2021.
The investment also comes amid a renewed push for tech sovereignty.
While the EU has earmarked €1bn for its quantum flagship programme, and the US is ramping up sector investments under its chips and science act, the UK has been increasing direct support for early stage research.
In March, DSIT also unveiled a new AI opportunities action plan, with crossover benefits anticipated between quantum and AI.
Yet, experts caution that for the UK to remain competitive, ongoing support will be necessary to translate lab breakthroughs into deployable products.
Legislative landscape
Unlike AI, which is beginning to see early-stage regulation in the UK and abroad, including the EU’s AI act and the UK’s voluntary AI safety commitments, quantum remains largely unregulated.
However, the government has signalled that as capabilities scale up, it will explore the safeguards to ensure ethical deployment and national security protections.
This latest investment also fits into broader ambitions around regional growth and digital innovation.
With quantum hubs established in locations like Oxford, Bristol and Glasgow, the government hopes to use tech investment as a lever to ‘level up’ high growth clusters outside London.
“The race for quantum leadership is intensifying globally”, Kyle said. “This funding is a statement that the UK intends not just to participate, but to lead.”