The UK government plans to encourage the NHS and Ministry of Defence to buy more British technology as part of a wider strategy to boost economic growth amid the Iran crisis. Treasury minister Spencer Livermore said the move aligns with Chancellor Rachel Reeves’s focus on harnessing the benefits of artificial intelligence, even as concerns grow about rising oil prices, inflation, and weaker economic performance. Reeves will outline her economic approach in a high-profile lecture on Tuesday, with Livermore explaining that her strategy will focus on three priorities. These include closer engagement with the European Union, strengthening regional development in areas such as the Oxford-Cambridge corridor and northern cities, and betting heavily on AI to drive productivity and jobs. On artificial intelligence, Livermore emphasized that the government wants to present an optimistic vision, despite concerns about potential impacts on employment, especially for younger workers. “There are massive opportunities here and that’s what we want to try to talk about,” he said. “Clearly we want to be one of the fastest adopters in the world. It’s really important that we talk about the huge opportunities for the economy and the amount of growth that we can get. And if we get more growth, then we’ll have more jobs.” Labour has faced criticism over its perceived closeness to US tech firms such as Palantir, which holds a contract with the NHS. Analysis by news outlets suggests that AI deals promoted by the government in the past two years have yet to produce concrete investment. Livermore acknowledged these challenges and said the government intends to use public budgets to support domestic tech companies, many of which are hindered by bureaucracy or institutional caution. To accelerate adoption, Livermore announced plans to establish a rapid innovation procurement taskforce outside traditional government procurement channels. This taskforce will pilot projects in health and defence, allowing the state to buy emerging technologies faster. “If you think about AI and the speed with which technology is changing, we’re very rarely the first customer for those companies. That’s got to change,” he said. Livermore also indicated that Labour is increasingly open to arguing for a closer trading relationship with the EU. He noted that the consequences of Brexit are proving more challenging than initially expected, and said the government is prepared to have a “fact-based conversation” about trade, while respecting manifesto commitments such as ending free movement of people. On the potential economic impact of the Middle East conflict, Livermore, who served as an adviser to former Prime Minister Gordon Brown, said the UK economy entered this period from a position of strength. He expressed confidence that the fundamentals would help the country weather the uncertainty. The new UK Government Tech Strategy reflects an ambitious approach to drive growth through AI adoption, domestic innovation, and more strategic government procurement. By prioritizing homegrown technology, the government hopes to create jobs, accelerate innovation, and reduce reliance on foreign tech firms, even as global instability creates additional economic pressures. This strategy positions the NHS and Ministry of Defence as early adopters, with the potential to showcase British technology and support wider economic recovery. With AI at the centre, ministers are signalling a commitment to modernizing government procurement, encouraging private sector innovation, and preparing the economy for future global challenges.