The UK government is said to be launching a 10-year programme that would see it invest £2.5 billion in quantum computing, as it looks to catch up with the U.S. and China which both dominate the sector.

According to a report in the Financial Times, the government "will more than double the funding that is available to researchers in industry and universities under the present £1 billion National Quantum Technologies Programme" in order to create a “future network of research hubs” and turn Britain into "the next Silicon Valley."

VC investment into quantum computing and processors in Europe more than doubled from $105 million in 2021 to $257 million in 2022. The UK has the most startups working on quantum technologies, 39, followed by Germany with 18, and France and the Netherlands both with 15, according to Dealroom data.

Last July, UK's quantum computing startup, Oxford Quantum Circuits raised £38 million in a Series A round to accelerate its R&D efforts and expand into the Asia-Pacific region, while Oxford Ionics raised a £30 million Series A round this January to build quantum processors using standard semiconductor chips.

The new government programme is expected to boost homegrown companies such as these two quantum companies while attracting quantum businesses to move to the UK from overseas with investment support.