Government Technology Plan Signals New Work in AI, Cybersecurity and Quantum Computing
A new ten year government strategy has placed artificial intelligence, cybersecurity, advanced connectivity, semiconductors and quantum computing at the centre of Britain’s growth plans, potentially creating a substantial pipeline of specialist contract work.
The government published its Digital and Technologies Sector Plan on 23 June 2025, intending to make the United Kingdom one of the world’s three leading locations for building and scaling technology businesses by 2035.
For IT contractors, the plan was significant because it identified the technologies most likely to receive government backing and private investment over the following decade. These included artificial intelligence, cybersecurity, quantum technology, semiconductors, engineering biology and advanced connectivity.
The strategy formed part of the wider Modern Industrial Strategy and sought to encourage successful British companies to expand within the country rather than relocate or list elsewhere.
More than £1 billion announced
The package included £670 million to accelerate quantum computing and give the National Quantum Computing Centre a ten year funding settlement. A further £380 million was allocated to engineering biology, including £184 million for commercialisation infrastructure.
The government also announced £35 million for semiconductor skills, £10 million for the Cyber Academic Startup Accelerator Programme, £6 million for Cyber Runway and £2 million for Belfast’s Cyber AI Hub. The plan followed £2 billion allocated to the AI Opportunities Action Plan. The government announcement described a package worth well over £1 billion.
Science and Technology Secretary Peter Kyle said: “Britain is full of ambitious risk-takers driven by a desire to innovate.”
Although much of the funding targeted research bodies and growing businesses, delivery would also require cloud architecture, software development, data engineering, systems integration, cybersecurity and programme management.
Technology sector already supports 2.6 million jobs
Technology trade body techUK said the British technology sector had reached approximately £1 trillion in market capitalisation and supported 2.6 million jobs. It calculated that the sector generated £207 billion in gross value added and was 19 per cent more productive than the economy as a whole.
Britain’s cybersecurity industry generated £13.2 billion in annual revenue across more than 2,000 companies, while more than £44 billion of private investment had been committed to UK artificial intelligence businesses since July 2024. Semiconductor revenues were projected to reach £17 billion by 2030.
TechUK welcomed the government’s priorities but warned that publication was only the beginning. Its assessment said the strategy was “just the start, and now onus will be on delivery.” TechUK’s contemporary analysis also called for close cooperation between industry and government.
Opportunities and risks for contractors
For independent technology professionals, the plan offered no automatic guarantee of assignments. Funding could be absorbed by large consultancies, permanent recruitment or existing research organisations. Public procurement rules and cautious IR35 assessments could also limit direct access for small consultancies and personal service companies.
Nevertheless, large technology programmes frequently require skills that organisations do not retain permanently. Artificial intelligence deployment requires data governance and model assurance, while quantum and semiconductor projects need security, infrastructure and highly specialised programme expertise. Cybersecurity work also tends to expand as new systems, suppliers and data connections are introduced.
Contractors positioned in these specialist areas could therefore benefit if the promised investment translated into funded projects. The clearest opportunities were likely to emerge around AI implementation, secure cloud infrastructure, cyber resilience, technical architecture and transformation management.
Its value to contractors would depend upon whether ministers and supported companies turned the funding into accessible projects with realistic procurement routes for independent specialists.