Pune, India | November 28, 2025
London – The 2025 UK Budget introduces sweeping initiatives to drive technology, science, and innovation across the country’s economy. It focuses on fostering growth and encouraging national renewal while creating opportunities for emerging enterprises. Consequently, the government unveiled a series of measures aimed at helping British start-ups and scale-ups thrive in a competitive global environment. These include generous investment schemes, simplified tax reliefs, and reformed public procurement procedures.
Under the new plan, UK Research and Innovation (UKRI) will receive £7 billion to support advanced enterprises. It includes those in clean energy, life sciences, advanced engineering, and diagnostic technologies. Furthermore, new fellowships will fund up to 100 leading researchers to transform their innovations into commercially viable ventures. This critical early-stage support is expected to accelerate research commercialization and strengthen domestic innovation pipelines.
In addition, the British Business Bank (BBB) will direct 60% of its venture and growth investments toward scale-ups. That introduces at least five new Series B funds. Moreover, the plan anticipates a minimum of ten growth-stage fundraising campaigns over the next five years. These steps are designed to provide proven companies with resources to expand operations, generate employment, and strengthen the UK’s position in the global tech sector.
For the first time, UK-listed companies will benefit from a three-year stamp duty holiday. It potentially saves up to £50 million annually. This unprecedented measure aims to encourage stock market investment while supporting the emergence of Britain’s next generation of tech “unicorns.” Consequently, more start-ups may access public capital markets and scale quickly.
Additionally, the government expanded the BridgeAI programme to encompass broader sectors under the national industrial strategy. BridgeAI assists companies in adopting artificial intelligence (AI) solutions across industries, including agriculture, transport, construction, and creative sectors, while now extending support even further. This expansion ensures that AI adoption becomes more inclusive, promoting innovation across diverse fields.
The Budget also dedicates £10 million to the semiconductor industry in South Wales and supports the development of new data centre facilities and foundries. These strategic investments aim to strengthen supply chains, support high-skilled jobs, and ensure the UK remains competitive in emerging technology markets.
Beyond financial incentives, the government pledged reforms to public procurement processes. These changes will make it simpler for small and medium enterprises (SMEs) to win public sector contracts. Moreover, a new online marketplace will allow SMEs to showcase innovations to multiple buyers simultaneously. It is increasing visibility and reducing barriers to entry.
Tax relief reforms for research and development (R&D) remain robust. Generous incentives will continue, alongside a new “advance assurance” service launching next spring. This initiative will give SMEs clarity on eligibility for tax relief before submitting claims. It significantly reduces administrative obstacles and accelerates innovation activity.
Speaking about the Budget, Liz Kendall, Secretary of the Department for Science, Innovation and Technology (DSIT), emphasized, “There is no better path to growth and higher productivity than supporting British science and technology companies to start up, scale up, and stay.” She further highlighted that new AI-backed initiatives had already generated over 10,000 jobs and attracted billions in investments within the past week alone.
Industry groups welcomed the announcement. The technology association techUK described the package as a “strong and well-considered” effort to support Britain’s most innovative firms. Similarly, Founders Forum Group and Tech Nation expressed optimism that the measures will foster British success stories, particularly in industries with significant future potential.
Nevertheless, critics warned that implementation will require careful oversight. While incentives aim to stimulate start-ups and scale-ups, translating funding and tax breaks into sustainable growth will depend on adequate infrastructure, talent availability, and regulatory clarity. Effective execution remains essential to achieve the Budget’s ambitions.
Despite these concerns, the government’s commitment to science, technology, and innovation signals a strategic shift for the UK economy. These measures could secure high-skilled employment, attract international investment, and establish Britain as a leader in frontier sectors such as AI, clean energy, and semiconductors.
As the Budget is implemented, industry experts and stakeholders will monitor whether the government’s ambitious vision produces tangible outcomes. Success will rely on retaining top talent, nurturing start-ups, and supporting the next generation of globally competitive, innovative companies.
