The Northern Ledger

Amplifying Northern Voices Since 2018

Reeves unveils £2.5bn quantum plan as North demands jobs

“Mary Coombs can help businesses innovate with confidence, accelerate research, and bring solutions to market more quickly,” said Professor Kate Royse at the STFC Hartree Centre in Daresbury. As Westminster talks up quantum and AI, the North already has the kit; what matters next is whether the money and the jobs follow. (hartree.stfc.ac.uk)

Chancellor Rachel Reeves told the BBC she wants to end the pattern of top British tech firms and scientists “drifting abroad” to scale and make money. She is setting out a plan built on a £2.5bn quantum commitment alongside faster AI adoption, closer EU ties and stronger regional powers to lift growth. For Northern founders who have watched teams decamp to California, Hamburg or Brisbane, the test is whether this week’s promises stick. (reddit.com)

On funding, the numbers are real. The government’s 10‑year National Quantum Strategy carries a £2.5bn pledge, with ministers also pointing to expanded compute and AI programmes to turn research into industry. Officials have repeatedly briefed that quantum could support over 100,000 UK jobs by the 2040s if the pipeline is built here, not overseas. (assets.publishing.service.gov.uk)

That pipeline needs devolved clout. From 2026–27, Integrated Settlements will extend beyond Greater Manchester and the West Midlands to the North East, West Yorkshire, South Yorkshire and Liverpool City Region, giving mayors more control over multi‑year budgets across skills, housing, transport and local growth. If quantum and AI are the next big hires, these settlements are how to land them outside the M25. (gov.uk)

“Now, thanks to devolution and our strong public‑private West Yorkshire partnership, we have the potential to go so much further,” said West Yorkshire mayor Tracy Brabin during a European trade mission pitching healthtech, industrial AI and advanced manufacturing. The ask from business is simple: route the labs, apprenticeships and supplier contracts up the A1 and M62, not just into Zone 1. (westyorks-ca.gov.uk)

The risk Reeves is trying to head off is familiar to northern universities and spin‑outs. IonQ’s 2025 deal to acquire Oxford Ionics underlined how British quantum talent often ends up scaling in North America; PsiQuantum, founded by UK academics, is building a utility‑scale system in Brisbane and Chicago; and Universal Quantum has expanded headcount and projects in Hamburg through Germany’s DLR programme. If Britain wants scale‑ups to stay, it must match that certainty at home. (investors.ionq.com)

Capital is part of the story. UK pension schemes now hold only around 1% of assets in UK quoted equities, starving domestic growth firms of patient capital just as the London market wrestles with high‑profile shifts to New York by groups such as CRH and Flutter. Mansion House reforms aim to push more DC pension money into productive assets, but founders from Leeds to Lancaster will judge success by whether scale‑stage term sheets actually improve. (thepensionsregulator.gov.uk)

Northern capacity exists to absorb serious investment. The Hartree Centre’s new Mary Coombs supercomputer at Daresbury is built for AI workloads used by industry; the N8’s Bede system has secured funding through March 2026 for researchers across the North; and York leads the national quantum communications work now feeding into the Integrated Quantum Networks Hub. This is a ready‑made platform for pilots in materials, logistics and healthcare. (hartree.stfc.ac.uk)

Policy with Brussels will shape energy and compute costs too. London and Brussels are exploring carbon market linkage and moves to recouple electricity trading-steps industry argues would cut bills and improve security if agreed this year. That sits alongside a broader ‘reset’ that targets alignment where it supports jobs and investment-vital context for data‑centre power and university‑industry labs in the North. (spglobal.com)

The geopolitical backdrop is hard to ignore. With the Strait of Hormuz effectively closed since late February amid the US‑Israel‑Iran conflict, oil and LNG flows have been hit and prices jolted-one reason ministers say decisions on North Sea projects must weigh security as well as climate law after court rulings forced Rosebank and Jackdaw back to the drawing board. The question for northern manufacturers is how quickly government can cushion energy‑cost spikes while staying within net‑zero law. (fortune.com)

Politics remains sharp‑edged. Conservative shadow chancellor Sir Mel Stride accuses the government of edging Britain “closer to the EU” while deflecting blame for weak growth-signalling a fight over any sector‑specific alignment Reeves pursues on chemicals, food standards or manufacturing rules. For firms here, the practical issue is certainty: one standards regime, simpler paperwork and faster approvals. (theguardian.com)

What should northern founders do now? Line up with your mayoral team on Integrated Settlement priorities; scope pilots with Hartree, York and local universities; and be ready to tap Mansion House‑era capital if it finally arrives. If the Chancellor delivers on quantum and AI with devolved heft, the next crop of scale‑ups should be hiring in Leeds, Liverpool, Newcastle and Sheffield-not boarding a one‑way flight. (gov.uk)

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