The NHS has received a significant boost in funding, with approximately £10bn allocated to technology and digital transformation as part of a wider £29bn funding increase across the health service, announced in the government’s Spending Review through 2027.
Chancellor of the exchequer Rachel Reeves highlighted the importance of investing in digital healthcare, stating that the funding represents a 50% increase in the NHS’ technology budget. She emphasized the shift towards a digital age for the health system, including the development of the NHS app for managing prescriptions, accessing test results, and booking appointments.
Alongside investments in energy infrastructure, public transport, and education, significant funding has been allocated to technological initiatives aimed at building stronger digital foundations, enhancing cyber resilience, modernizing public services, and improving government efficiency.
The government’s commitment to the science and technology sector includes plans to spend around £86bn during the current Parliament, with an additional £1.2bn earmarked for cross-cutting digital priorities. This investment is supported by a £3.25bn Transformation Fund.
Furthermore, research and development funding is set to increase to £22bn per year by the end of the spending review period, demonstrating the government’s support for innovators, researchers, and entrepreneurs.
The announcement also includes a £2bn allocation for the government’s AI Action Plan, aimed at driving innovation and investment in artificial intelligence. Additional funding will support R&D missions, the scaling of the Advanced Research and Invention Agency, and the development of research infrastructure.
In the realm of defense and security, a £600m uplift has been allocated for the UK’s security and intelligence agencies, including the National Cyber Security Centre and the National Protective Security Authority.
To support a modern tech-focused society, the Spending Review includes funding for Building Digital UK to provide gigabit broadband services to 99% of UK premises by 2032, with a focus on improving connectivity in Scotland and Wales.
AI and NHS spend welcomed
Industry experts have welcomed the government’s initiatives supporting AI and digital healthcare. James Clark, a partner at law firm Spencer West LLP, praised the government’s commitment to advancing the AI sector.
Flann Horgan, from NTT Data UK & Ireland, emphasized the importance of modernizing NHS infrastructure to support the integration of AI technologies for improved patient care.
Mark Boost, CEO of Civo, highlighted the need for strategic investment in AI infrastructure to ensure fair competition and innovation across the tech sector.
