**UK Scraps $1.7 Billion Tech Fund, Sparking Industry Concerns**

The UK government has withdrawn its $1.7 billion pledge to advance frontier technologies, including AI and quantum computing. This decision, made after the Labour party's recent electoral win, has stirred unease in the tech community, fearing it may stifle innovation and drive startups to seek foreign investment.

Previously promised by Conservative leaders, the fund's cancellation has been met with widespread disapproval. Industry insiders worry that UK-based quantum tech firms, many of which are university spinouts, might relocate to countries offering better support, like the US.

Ashley Montanaro, co-founder of Phasecraft, voiced concerns, noting that companies are increasingly setting up international offices to find the necessary support and enthusiasm for their ambitious projects. Phasecraft itself has opened a new office in Washington, D.C. to enhance talent recruitment and networking.

The UK, home to prestigious quantum startups like Oxford Quantum Circuits and Cambridge Quantum Computing, now faces the challenge of retaining its tech talent amidst this funding cut.