The government has set out a new package of measures designed to strengthen the UK’s technology base and support companies developing digital infrastructure, artificial intelligence, and emerging technologies. The plan is positioned as a route to long-term economic growth, with a focus on ensuring British firms can start, scale, and remain in the UK. The announcement holds particular significance for the digital construction sector, where advanced data, automation, and AI capabilities are becoming central to national productivity.
Reforms and investment
Science and Technology Secretary Liz Kendall confirmed that the Autumn Budget introduces reforms and investment intended to expand innovation, stimulate private sector confidence, and reinforce the UK’s position as a competitive environment for technology-driven industries. She stated that the measures will support a new phase of growth rooted in science, research, and technology adoption across the economy.
A key component of the package is a three-year stamp duty holiday for UK-listed companies. This is expected to reduce operational costs for high-growth firms and support a more attractive market environment for investors. Combined with ISA reforms and measures aimed at strengthening share prices, the government intends to stimulate increased investment in sectors such as AI, digital design, advanced manufacturing, and connected infrastructure. For technology companies operating within the built environment, this may create favourable conditions for securing long-term capital and boosting digital construction innovation.
Entrepreneurship prospectus
The Department for Science, Innovation and Technology (DSIT) will launch an Entrepreneurship Prospectus to set out the UK’s offer to founders and early-stage companies. The Prospectus is designed to reduce administrative barriers and clarify the support available to new ventures developing technologies such as generative AI, automation tools, digital twins, and data-driven construction platforms. At the same time, the BridgeAI programme will expand across additional Industrial Strategy sectors, enabling businesses to accelerate AI adoption and overcome challenges linked to skills, integration, and digital capability.
These initiatives sit alongside a £7 billion investment through UKRI, targeted at supporting high-potential firms as they scale. For the digital construction sector, this signals greater backing for companies involved in robotics, BIM-driven delivery, computational design, and the development of data centre infrastructure needed to support national AI capacity. The government emphasised that strengthening foundries, data centres, and other critical digital assets is essential to improving economic resilience and supporting emerging technology markets.
The Budget also introduced reforms to tax relief mechanisms aimed at simplifying processes for small and medium-sized enterprises. A new advanced assurance service will launch in the spring to give SMEs clarity on key elements of their R&D tax relief claims before submitting to HMRC. The government expects this to reduce administrative burdens and support companies investing in research, prototyping, and digital transformation.
Central focus
AI remains a central focus of the government’s strategy. More than £70 billion of investment has been committed to the sector since the government took office, reflecting the growing role of AI-enabled solutions in economic performance and industrial productivity. For the built environment, this includes applications such as predictive maintenance, automated planning, real-time project analytics, and AI-supported design, key tools for improving efficiency across digital construction workflows.
Kendall noted that the UK is seeing rapid progress in AI-driven job creation and inward investment. The government’s strategy aims to maintain this momentum and encourage more companies to develop and commercialise digital tools within the UK.
Technology markets
The measures collectively form a wider approach to supporting entrepreneurs and reinforcing the UK’s position in global technology markets. For the digital construction sector, the Budget signals ongoing commitment to strengthening the ecosystem that supports innovation, from R&D funding and tax reliefs to AI integration programmes and infrastructure investment.
The government’s focus on science and technology growth reflects a broader ambition to align public support with private-sector innovation. As digital construction firms continue to adopt new tools and processes, these measures are designed to provide a more stable and investment-ready environment for scaling technology, improving productivity, and delivering long-term economic value across the built environment.
Read next: How digital tools can help meet the UK’s construction targets – Build in Digital
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