Autumn Budget criticised for vague AI plans & lack of cyber focus
The Chancellor's Autumn Budget has drawn mixed responses from business leaders and technology executives, with concerns raised about the lack of detail on artificial intelligence (AI) strategy, cybersecurity, technological investment in policing, and the relaxation of restrictions for small and medium-sized enterprises (SMEs).
AI policy doubts
Questions remain about the extent of the government's commitment to AI policy and infrastructure, despite references to an AI sandbox and continued funding.
Paul Alexander, CEO, Beyond: Putting Data To Work, said: "The Budget talks a good game on AI, but still misses how these systems work in practice. Funding helps, but without the right data, infrastructure and governance, capability simply doesn't follow. The AI sandbox is a sensible idea, but without clear standards on data quality, interoperability and public-sector readiness, it risks producing impressive pilots that never scale. That's innovation theatre - but not progress."
"The UK won't lead in AI through scattered pilots, as AI isn't an add-on to legacy systems - it becomes the system. Until the government puts real urgency behind modernising data infrastructure, we'll keep backing ambition without outcomes. What we need now isn't another initiative, but a coherent national data and AI backbone."
Cybersecurity omission
The Budget has also come under criticism from IT and cybersecurity professionals for failing to prioritise measures that address rising digital threats. Observers noted the lack of new commitments to help businesses stave off sophisticated cyber-attacks and prepare for future risks such as quantum computing.
Shankar Haridas, Head of UKI, ManageEngine, said: "The Autumn Budget missed an opportunity to confront one of the most immediate risks facing UK businesses. Cybersecurity is now intertwined with business continuity, productivity, and public confidence, and the pace of threat escalation is outstripping many organisations' ability to respond."
"Across UK enterprises, attackers are moving faster, using automation and AI to exploit gaps in visibility and control. We've already seen how one compromised supplier or an unmonitored endpoint can ripple across a sector; the retail outages earlier this year were a stark example."
"Security can't sit on the sidelines. It must be baked into businesses' investment decisions, technology roadmaps and day-to-day operations. And the horizon is shifting once again with the arrival of quantum computing. As practical quantum capabilities are expected, the encryption methods organisations rely on today will not hold indefinitely. Preparing for quantum-safe architectures has to begin now, or critical systems risk falling behind the next wave of threats," said Haridas.
Police technology investment
Stakeholders in policing technology expressed disappointment over the lack of detail on how new funds for police forces would be distributed, particularly for technology investment. Industry figures argue that software and digital tools have become essential for policing effectiveness and public safety, and further clarity is needed on future spending commitments.
Huw Bristow, CTO, Altia, said: "The Chancellor's Spending Review earlier this year offered welcomed increases for police spending. So, it is disappointing to see no direction on how this money will be spent in the Budget today. There needs to be a strong focus on investing in technology, as it can vastly increase productivity and improve policing. Targeted investment into software will enhance operational efficiency, support investigative capabilities, help to secure convictions, and ultimately improve public safety."
Support for SMEs
SME representatives have identified a gap in the Budget's reach, warning that policies around talent development, business rates, and tax changes may not align with the realities of small business growth in the digital economy. Concerns focus on the limitations of apprenticeship schemes and the potential consequences of changes to dividend tax on entrepreneurship.
Sarah Vaughan, Director, Angelica Solutions, said: "The apprenticeship support is welcome, but its narrow focus on 18–21-year-olds who've been out of work or education for 18 months limits its impact. Helping those struggling to start out is important, but without incentives to develop top talent and recent graduates, we risk creating a mediocre workforce and economy."
"Business rates relief again favours companies with physical premises, leaving out service-based and micro-businesses - many of which are among the UK's highest-value, fastest-growing sectors."
"The rise in dividend tax will also worry small business owners. While some see the dividend gap as a loophole, that overlooks the realities of early-stage entrepreneurship, where financial risk is constant. If we want a truly accessible and dynamic economy, we need to maintain the right balance between risk and reward. These measures are steps forward, but they don't go far enough," said Vaughan.
