Pune, India | November 28, 2025
The 2025 UK Budget provides significant backing to technology and science companies, driving national renewal and economic growth. The government introduced new measures to help British startups and scale-ups thrive through investment schemes, simplified tax reliefs, and procurement reforms. A key part of the plan includes a £7 billion funding boost to UK Research and Innovation (UKRI). It supports industries such as clean energy, advanced engineering, life sciences, and diagnostics.
In addition, the Budget will fund up to 100 leading researchers with new fellowships that help spin out innovations into commercial ventures. It provides vital early-stage support. The British Business Bank (BBB) will focus 60% of its venture capital investments on scale-ups. By launching at least five new Series B funds. Moreover, it aims to initiate a minimum of ten growth-stage fundraising campaigns over the next five years. These efforts provide established companies with opportunities to expand and create jobs across the UK.
Breaking from tradition, the Budget introduces a three-year stamp duty holiday for UK-listed firms. It potentially saves them up to £50 million annually. These incentives stock market investments and aim to foster the rise of British tech “unicorns.” The BridgeAI program has also been expanded to cover more sectors under the national industrial strategy. It enables businesses to access expert guidance and funding to adopt AI solutions in agriculture, transport, construction, creative industries, and beyond.
Furthermore, the Budget allocates £10 million for the semiconductor sector in South Wales and supports establishing new data centers and foundries. These investments target strengthening supply chains and fostering high-skilled job growth in high-tech industries. To aid small and medium enterprises (SMEs), the government plans to revamp procurement rules. This makes it easier for them to secure public sector contracts. A new online marketplace will showcase innovations to multiple government buyers simultaneously.
Tax relief policies remain favorable, particularly for research and development (R&D), with generous incentives maintained. Next spring, the government will launch an “advance assurance” service. That clarifies SMEs’ eligibility for tax relief before claims submission, significantly cutting red tape. At the Budget announcement, Liz Kendall, Secretary of the Department for Science, Innovation and Technology (DSIT), emphasized that supporting British science and tech companies to start, grow, and stay in the UK is crucial for productivity gains. She noted that recently launched AI-backed initiatives created over 10,000 jobs and secured billions in investment.
Industry groups greeted the Budget positively, with techUK calling it a “strong and well-considered” strategy for Britain’s most innovative companies. Founder networks and Tech Nation expressed confidence that the new measures would help develop future British success stories. It is particularly in promising sectors. Nevertheless, critics caution that effective implementation requires close oversight. They argue that turning funding and tax breaks into sustained growth depends on robust infrastructure, a skilled workforce, and clear regulations.
Overall, the government’s strong commitment to science, technology, and innovation signals a strategic shift in the UK economy. This approach is expected to secure high-skilled employment, attract global investment, and position Britain as a leader in cutting-edge fields like AI, clean energy, and semiconductors. As the Budget implementation progresses, stakeholders will watch closely to see if the government’s vision results in retaining top talent and launching new, groundbreaking companies.
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