UK budget sets £50m fund for AI in the civil service

Chancellor John Healey announced in the budget a £50m civil service AI transformation fund, managed by the new Cabinet Office team GovAI.

By GennnAi·October 28, 2026·1 min read

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The fund is financed by reinvesting part of savings from lower administration budgets. It covers 2027-28 and 2028-29 and aims to automate processes and cut administrative burdens, supporting a further £600m of back-office savings. GovAI, backed by £35m, will give civil servants access to frontier AI tools. The wider AI package exceeds £700m. Prospect and PCS unions warned against using AI as a pretext for job cuts.

Source: Civil Service World, published on October 28, 2026.