Autumn Budget 2026: the channel reacts

The much-awaited Autumn Budget was delivered yesterday, and channel leaders have weighed in on the measures announced

Following Chancellor John Healey’s Autumn Budget announcement on the 28 October, UK channel leaders have responded to the new measures introduced.

The government unveiled a £700m AI package alongside measures targeting technology investment, skills and business growth.

The Budget also includes £120m in additional funding for the AI Security Institute and £140m for the Sovereign AI Unit, alongside a new Datacentre Covenant intended to support the infrastructure needed for Britain’s AI ambitions.

Businesses will receive support, with the introduction of Founders Relief, offering eligible founders of high-growth companies a reduced 10 per cent rate of Capital Gains Tax on up to £10m of lifetime gains and tripling trading allowance.

£700m AI package

The Chancellor has announced an ambitious AI package, investing £700m to tackle AI risks while unlocking its potential.

This includes £120m for the AI Security Institute, with £40m reserved for what the government claims will be a world-first national capability to investigate and respond to agentic AI security incidents.

This is alongside investment in institutions and infrastructure to strengthen resilience against cyber and biological threats, and further funding for the AI Economics Institute to assess the impact of AI on jobs, productivity and living standards.

The package also supports the UK to capture the benefits of AI, with £140m of funding reserved for the Sovereign AI Unit, aiming to help UK AI companies scale and maintain a presence in the nation.

The announcements were broadly welcomed by the UK channel, although industry leaders stressed that government investment needs to translate into secure adoption, productivity and tangible economic returns.

Russell Brown, UK CEO of SCC, said there was “plenty to welcome” in the Budget, particularly around investment, innovation and support for British businesses.

“Having spent the last five years working in the US, I’ve seen first-hand how actively America competes for investment, jobs and capability. We need to see more of that mindset here,” he said.

“The test now is whether these measures give businesses the confidence to invest in people, skills, technology and infrastructure in the UK for the long term.”

For Brown, the AI commitments announced come as the conversation around the technology shift towards tangible commercial impact.

“AI is moving from experimentation to economics,” he said.

“We’ve spent the last few years fascinated by what AI can do, and now the question is where it genuinely creates value, what happens when we scale it, and how it translates into productivity and growth.

“The opportunity now is to turn the UK’s strength in AI into real economic advantage.”

Barriers to AI adoption persist

Richard Thompson, CEO, ANS, argued that the channel will play a central role in providing the foundations that businesses need to adopt AI securely.

“As AI systems become more autonomous, the channel’s role in providing secure infrastructure, high-quality data and robust governance will be essential to building confidence in their adoption.

“This is how we’ll empower organisations to harness AI’s potential and drive economic resilience while managing cyber threats.”

Ian Cairns, sales director at MSP TalkTalk Business, welcomed the investment in AI and security, but warned that organisations will need the underlying infrastructure to take advantage.

“The Budget’s investment in AI, security and trust is an important step in strengthening the UK’s position as a global technology leader,” he said.

“Delivering this ambition relies on organisations being able to adopt AI confidently while protecting against cyber threats – a level of readiness that we need to drive further.”

Cairns warned that organisations are still grappling with legacy technology and network challenges that could prevent them from realising true value from AI.

“We’re still seeing organisations struggle with legacy technology and network challenges that leave them lagging behind in the race to reap AI’s benefits first.

“The UK needs to be re-built on secure and connected foundations that enable AI to boost productivity and deliver real ROI.”

Infrastructure alone is not enough, and Thompson explained that skills will also be key in driving AI forward.

“Investment in skills will be equally important to translating the UK’s AI ambitions into economic impact,” he said.

“Initiatives like the Union Learning Fund are a sign for the channel to look at how it can build an AI-fluent workforce.

“Collaboration across the channel will be key to ensuring all workers can access training such as the Level 5 AI Leadership Apprenticeship Unit.”

He explained that the channel should embrace the training and opportunities measures announced.

“The channel already plays a key role in creating training and apprenticeship opportunities for young people from all backgrounds, and the Government’s ambition to create 200,000 entry-level digital and technology jobs will build on this.”

Strengthening cybersecurity

As investment for AI grows, the need for stronger security grows beside it.

With increasing numbers of AI-powered attacks, the measures announced surrounding cybersecurity are warmly welcomed.

Ben Savage, UK CEO, Ekco, said, “The government’s £154 million commitment to strengthening the UK’s cyber defences is a welcome recognition of how important cybersecurity has become to the economy.

“As businesses become increasingly reliant on digital systems, protecting their operations is fundamental to keeping them running.

While investment strengthens the UK’s cyber defences, businesses need to consider their own exposure, he explained.

“For SMEs in particular, the commercial consequences of a cyberattack can be significant

“The government’s investment is an encouraging step.

“For businesses, the priority is making sure they’re equally prepared to manage disruption and protect their ability to operate.”

SMEs and backing British business

With a goal of encouraging entrepreneurship, supporting British businesses and removing barriers to growth.

NoBlue2’s CEO, Chris Bunch, believes that this support should ultimately support the country’s outlook and strength going forward.

“We’re now spending over £100bn a year just servicing government debt – more than we spend on defence – and debt is around 95 per cent of GDP. The only sustainable way out is growth,” he said.

“I welcome the new Founders’ Relief: the UK should be backing people who take risks and build businesses, aggressively.”

However, Bunch believes stronger measures could have been taken.

“But this Budget is tinkering, not reform, in my view.

“Genuinely changing how the country is funded will take a government willing to campaign on it.”

High operating costs and limited access to finance are holding back SMEs, and the budget has included measures to address some of the pressures.

“But with economic growth expected to slow to just one per cent next year, many SMEs will remain cautious about committing to new expenditure,” said James Healey, CCO, Air IT Group.

“For smaller businesses, the real test of this Budget will be whether it gives them the financial headroom and confidence to invest in their future.

“With operating costs continuing to put pressure on margins, SMEs need an environment that supports growth rather than forcing them to focus solely on immediate financial pressures.”

Technology will play a large role in the continued growth and strengthening of the nation’s SMEs, and this is where the channel can help these organisations grow.

Healey continued, “Technology has an important role to play here. Investment in automation and AI can help businesses tackle inefficiencies and improve productivity, but smaller firms often have less room for error when deciding where to spend.

“The challenge is making sure investment is directed towards opportunities that can deliver measurable returns, rather than adding to costs without a clear benefit.

“If the Government wants to unlock stronger productivity across the SME sector, it needs to recognise that businesses require both the confidence to invest and the ability to make those investments count.

“Creating the right conditions for growth is an important starting point, but SMEs also need a clear understanding of where technology can make the greatest difference.”