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Welcoming the UK Budget 2026, Dame Tamara Finkelstein DCB, Chief Executive of the Royal Academy of Engineering says:

“So many of the pressing challenges that John Healey’s first UK Budget has highlighted, have an engineering dimension.

Innovation

“We welcome the new measures to support the UK’s deep tech businesses to stay and scale in the UK. As the Academy’s forthcoming State of Deep Tech report highlights, the UK is a global leader, but persistent growth capital gaps risk the loss of value created by our most innovative companies. The real test will be whether this capital reaches high-potential engineering and technology companies at the pace and scale required to support their growth in the UK.

AI

“Expansion of the Sovereign AI fund to support physical and industrial AI presents a major opportunity for UK engineering to help improve productivity and capability across the economy through safe and effective AI adoption. Regulatory capability and standards are a UK strength, so it is good to see investment in building on those foundations for AI.

“The new data centre covenant responds to many of the concerns that the Academy’s National Engineering Policy Centre has highlighted around the sustainable development of AI. The focus on environmental reporting, maintaining environmental standards and local benefit will help extend the positive impact of AI locally.

Energy

"It is critical to help households transition to electrified heating systems and to support technology adoption of solar and batteries to make the wider energy system cleaner, more secure and more resilient. We are pleased to see the retention of the Boiler Upgrade Scheme and applaud new plans to establish a Warm Homes Loan Scheme.

“The decision to reduce support for Carbon Capture and Storage (CCUS) and Hydrogen deployment however is disappointing. They are both vital components of a low carbon energy system and CCUS is currently the Government’s key route to decarbonising gas-fired generation and hard-to-abate sectors.”

For more information please contact Lorrie Fay

Lorrie Fay
020 7766 0729

Notes for editors

  1. The Royal Academy of Engineering creates and leads a community of outstanding experts and innovators to engineer better lives. As a charity and a Fellowship, we deliver public benefit from excellence in engineering and technology and convene leading businesspeople, entrepreneurs, innovators and academics across the profession. As a National Academy, we provide leadership for engineering and technology, and independent, expert advice to policymakers in the UK and beyond.
    Our work is enabled by funding from the Department for Business, Innovation, Science and Trade, corporate and university partners, charitable trusts and foundations, and individual donors.