This follows several instances of leading quantum companies leaving the UK for the US and mainland Europe to scale already this year. Bristol University spin-out PsiQuantum is now scaling primarily in the US, Universal Quantum has relocated to Hamburg, and Oxford Ionics was acquired by Maryland-based IonQ.

Lisa Matthews, CEO of KETS Quantum Security, believes this trend is set to become increasingly prominent. This would see the UK cede control of critical national infrastructure and technologies tied directly to the nation’s security, necessitating a reliance on suppliers from overseas to be truly quantum-safe. That is unless the government makes significant changes to the support it offers quantum startups and scaleups.

She says: “The UK has made real progress in supporting quantum innovation, but the reality is that many start-ups are starved of the capital needed to scale at pace. Grants and challenge funds help get ideas off the ground, but they don’t bridge the gap between ideation and rapid commercial scale.

“Announcing a Quantum Sovereign Wealth Fund during the Budget Speech is a necessity to prevent a mass exodus of British innovation and prosperity, and to avoid ceding control of critical quantum technologies. It would act as the long-term investment engine into the UK’s quantum future, creating an ecosystem where quantum startups can thrive commercially, rather than relocating to the likes of the US, or mainland Europe.

“We are falling behind in the global equity markets, with China, the EU, Germany, France, Denmark, Japan, Singapore, and South Korea all already having venture vehicles to deploy public funds directly into quantum technologies. The US has also announced recent plans to take equity stakes in home-grown quantum companies. Companies source equity globally, and we have to keep up.

“By launching a Quantum Sovereign Wealth Fund, the UK government can not only safeguard critical IP but send a powerful message to global investors: the UK is serious about leading the way on quantum deployment and growth. Without change, the UK will remain the world’s R&D centre, but see none of the profits, and will relinquish control of its national security. World class research will be scaled abroad or sold off before it comes close to reaching its full potential on home soil.”

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