Hundreds of millions of pounds will be invested in cutting-edge drones and artificial intelligence for the military as part of Rachel Reeves' attempt to revive the flagging economy.
The Chancellor's new industrial strategy will include a £330 million investment in technology used by the Armed Forces, such as 'next-generation drones' to be developed for joint use on the battlefield and by the emergency services.
Money will also be ploughed into ultra-powerful computers for MI5, MI6 and GCHQ as well as artificial intelligence (AI) applications to track enemy targets.
The investment, part of the strategy being launched tomorrow, comes as Ms Reeves is struggling to boost the UK's flagging growth prospects, which the Confederation of British Industry last week slashed to 1.2 per cent for this year and 1 per cent for 2026.
In addition, government borrowing hit a non-pandemic record for May and retail sales last week were down.
