Cuts to public funding for quantum computing research could jeopardise decades of investment and leave the UK dependent on other countries for access to cutting-edge technology, according to the founders of leading UK quantum start-up, Phasecraft.
Ashley Montanaro and Toby Cubitt, co-founders of Phasecraft—a company that spun out from University College London and the University of Bristol—warned that quantum computing is at a “critical juncture.” They expressed concerns following the UK government’s decision in August to withdraw £1.3 billion in promised funding for technology and AI projects, which has sent shockwaves through the industry.
As venture capital investment in quantum computing continues to decline, experts fear that the UK will struggle to keep pace with the United States and China. Cubitt, Phasecraft’s Chief Technology Officer, stated that the leading nations in quantum computing will gain not only direct benefits but also technical, manufacturing, and commercial advantages. Those left behind, he warned, will be dependent on the “goodwill of others” to access the benefits of quantum advances.
Montanaro, the company’s CEO, highlighted the critical role of government funding, which remains the primary source of support for start-ups. He emphasised that the US and China have both heavily invested in quantum, recognising the sector’s long-term potential.
Phasecraft, founded in 2019, focuses on developing algorithms that bring quantum computing closer to practical applications. The company has secured $21 million in funding and recently expanded to the US, attracting top talent like Steve Flammia, former principal research scientist at Amazon Web Services.
In a paper, Montanaro and Cubitt called on the UK government to maintain public investment in quantum computing until the sector can sustain itself, cautioning that failure to do so could squander the UK’s competitive edge. They also urged the government to avoid regulations that stifle international collaboration, warning that innovation will inevitably find a way forward, despite barriers.
Quantum computing, which promises to revolutionise industries like drug discovery, material science, and energy optimisation, could generate significant global economic impact. McKinsey estimates potential gains of up to $2 trillion by 2035, with quantum computing alone contributing nearly $1.3 trillion.
Despite the withdrawal of the £1.3 billion in funding, the UK government maintains its commitment to quantum technologies, recently announcing £100 million for new research hubs, including a quantum computing hub at the University of Oxford. A Department for Science, Innovation, and Technology spokesperson emphasised the government’s focus on supporting the UK’s quantum sector and taking a long-term approach to research funding to secure the UK’s position in global innovation.
Jamie Young
Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.
