Hundreds of millions of pounds will be invested in cutting-edge drones and artificial intelligence for the military as part of Rachel Reeves‘ attempt to revive the flagging economy.
The Chancellor’s new industrial strategy will include a £330 million investment in technology used by the Armed Forces, such as ‘next-generation drones’ to be developed for joint use on the battlefield and by the emergency services.
Money will also be ploughed into ultra-powerful computers for MI5, MI6 and GCHQ as well as artificial intelligence (AI) applications to track enemy targets.
The investment, part of the strategy being launched tomorrow, comes as Ms Reeves is struggling to boost the UK’s flagging growth prospects, which the Confederation of British Industry last week slashed to 1.2 per cent for this year and 1 per cent for 2026.
In addition, government borrowing hit a non-pandemic record for May and retail sales last week were down.
Without proper growth, the Chancellor will likely have to make the unenviable choice between hiking taxes further in autumn’s Budget or breaking her fiscal rules.
Ms Reeves has promised that the ten-year infrastructure strategy will lead to a ‘decade of national renewal’.
The Government is putting £15.6 billion into transport upgrades, £39 billion into social and affordable housing and £14.2 billion for the Sizewell C nuclear power station.
Hundreds of millions of pounds will be invested in cutting-edge drones and artificial intelligence for the military. Pictured: A soldier from the Royal Regiment of Scotland flys the Parrot Anafi drone
Money will also be ploughed into ultra-powerful computers for MI5, MI6 and GCHQ as well as artificial intelligence (AI) applications to track enemy targets. pictured: MI6 headquarters
Ms Reeves told The Mail on Sunday she intended to ‘pull together a plan to exploit new opportunities, whether it’s AI, energy technology, a whole range of parts of the economy’.
She added: ‘I’m really optimistic about Britain’s future. We’ve got great businesses, we’ve got great trade deals… I don’t see any reason for Britain not to be leaders in these jobs and industries of the future.’
But Shadow Chancellor Sir Mel Stride said: ‘We have to put the public finances back on a sustainable footing. A future Conservative government will have to contend with a bloated national debt after Labour’s reckless borrowing splurge.
‘We will never make promises we cannot afford, and our plans will always be fully costed. Labour’s “spend now, tax later” approach is utterly short-sighted.
‘It mortgages Britain’s future for short-term political convenience and leaves ordinary families to foot the bill.’
