29 Oct 2026

2026 Budget: The UK Government is sending a clear signal – deep tech and quantum technology are central to Britain’s future economic growth.

The 2026 Budget and the Chancellor’s subsequent letter to the British Business Bank set out a clear direction of travel. The Government wants to increase investment in innovative British businesses, strengthen the UK’s strategic technological capabilities and ensure that more home-grown technologies are developed and commercialised here.

For the deep-tech and quantum sectors, several announcements stand out.

More capital for innovative businesses

The British Business Bank’s financial capacity will increase by £5 billion to £30.6 billion, including £1.4 billion of additional capacity to invest in equity funds backing high-growth businesses and £450 million for a new venture debt product. The Government has also directed the Bank to sharpen its focus on strategically important technologies, with up to £900 million expected to support defence and dual-use technologies.

A substantial commitment to quantum technology

The Budget builds on the Government’s existing £1 billion commitment to procure large-scale quantum computers with a further £138 million for a Quantum Sensing and Positioning, Navigation and Timing Procurement Catalyst.

This is significant because it goes beyond research funding. By creating routes for quantum technologies to be tested, adopted and deployed in real-world applications, the Government is helping to establish the conditions for commercial growth.

Backing the wider innovation ecosystem

A further £1 billion over four years will support priority innovation clusters, while new measures are intended to improve access to growth capital, encourage institutional investment and help innovative companies scale within the UK.

Taken together, these measures reflect an increasingly clear policy objective: to translate the UK’s scientific strengths into commercially successful businesses, strategic capabilities and long-term economic value.

What does this mean for investors?

Deep tech requires patient capital, specialist investment expertise and an understanding of technologies that may take time to reach commercial maturity. Government funding and procurement can help strengthen the investment environment, but private capital remains essential to building successful companies and scaling their technologies.

At Quantum Exponential, we believe the UK has a significant opportunity to establish itself as a global leader in quantum technology. As a specialist investor in the sector, we see the development of a stronger funding environment, growing commercial demand and sustained government commitment as important factors in the sector’s long-term development.

The challenge now is to convert Britain’s research excellence and technological capabilities into world-leading businesses.

https://www.gov.uk/government/publications/government-letter-to-the-british-business-bank