Chancellor George Osborne made the announcement during his Budget speech on Wednesday. The Institute – named after the famous codebreaking British mathematician – is intended to help British companies by bringing together expertise and experience in tackling big data.

The tender to house the institute is to be produced later this year, with a view to using either an existing space within a university, or a brand new facility. The funding, coming from the Department for Business, Innovation and Skills, will span a five year period.

In his speech, Osborne said that the Institute would be founded “to ensure Britain leads the way again in the use of big data and algorithm research”.

“I am determined that big data can allow businesses to enhance their manufacturing processes, target their marketing better, and provide more efficient services.”

The speech can be read in full here.