Chancellor Rachel Reeves used a visit to the National Quantum Computing Centre in Oxfordshire to underline a single objective: stop high‑growth UK tech firms and researchers commercialising breakthroughs overseas. The message precedes her Mais Lecture in London, where she will argue that policy stability, targeted public investment and deeper EU cooperation are needed to lift trend growth.
On funding, ministers point to the government’s 10‑year National Quantum Strategy, which commits £2.5bn to quantum research and deployment from 2024, alongside long‑term backing for the National Quantum Computing Centre. Seven prototype testbeds moved into operation in 2025, designed to build a domestic user base and accelerate adoption. HM Government projects quantum could support over 100,000 UK jobs and add around £11bn to GDP by the mid‑2040s. (gov.uk)
Reeves will set this in a wider growth plan rooted in closer regulatory cooperation with the EU where it lowers costs for business. The Council of the EU has authorised negotiations with the UK on a common sanitary and phytosanitary (SPS) area and on linking carbon markets, signalling scope to remove extensive border frictions on food and agriculture. The House of Commons Library notes the energy title of the Trade and Cooperation Agreement is due for renewal or replacement by 30 June 2026, creating a parallel track for deeper cooperation. (consilium.europa.eu)
The policy problem Reeves is targeting is well‑documented: many promising UK scale‑ups choose to raise capital or list abroad. Analysts cite thin domestic risk capital, low pension fund allocations to UK equities and the relative pull of US markets. London saw its biggest exodus of listed companies since the financial crisis in 2024, while UK pension funds’ equity allocations have declined sharply over two decades. (standard.co.uk)
Officials also flag energy market reforms as a competitiveness issue. Since Brexit, Great Britain no longer participates in EU market coupling for cross‑border power trading, adding inefficiencies to interconnector flows. S&P Global reports both sides are exploring recoupling arrangements; the European Commission records that the TCA’s energy provisions expire on 30 June 2026 unless renewed, concentrating minds on a deal. (spglobal.com)
The geopolitical backdrop is challenging. Disruption in the Strait of Hormuz amid the US‑Israel conflict with Iran has driven oil price spikes and raised inflation risks. AP and other outlets report that shipping through the strait has at times been heavily constrained, with energy markets reacting accordingly. That context explains Reeves’s emphasis on both domestic resilience and international energy cooperation. (apnews.com)
Decisions on the Rosebank and Jackdaw North Sea developments remain live. A Scottish court ruled in January 2025 that prior approvals were unlawful, sending both cases back to ministers; the government later reopened the approval process under updated guidance. Any fresh determination will need to balance security of supply, investment signals and the UK’s carbon budgets. (theguardian.com)
Conservative critics frame the government’s approach as rowing back on Brexit. Shadow chancellor Sir Mel Stride has accused ministers of seeking to pull the UK closer to EU rules, while the government argues alignment will be pursued only where it is demonstrably in the national interest and reduces costs. Recent commentary captures that exchange, underscoring the political dividing line on regulatory strategy. (theguardian.com)
On artificial intelligence, ministers have set a goal for the UK to achieve the fastest AI adoption in the G7, pairing skills programmes with public‑sector deployment to spur diffusion. Reporting in late February referenced this ambition, with further initiatives trailed to raise adoption rates among firms and workers. (theguardian.com)
For policy and finance teams, the operational takeaways are near‑term. The quantum programme provides a multi‑year funding spine and testbed access that firms can plan against. SPS negotiations, if concluded on a dynamic alignment basis, would materially cut certification and border costs for agri‑food exporters. Any UK‑EU electricity trading deal could trim imbalance costs for energy‑intensive industries. (gov.uk)
The calendar is tight. The TCA’s energy title hits a decision point on 30 June 2026; SPS talks are active; and North Sea determinations are pending. Reeves’s pitch is that a combination of targeted tech investment, pragmatic EU alignment and stronger regional powers can reduce the UK’s scale‑up leakage and support growth during an energy shock. The next moves will be legislative texts, negotiation mandates and project approvals rather than new slogans. (commonslibrary.parliament.uk)