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I'm not sure if there is any hope for the UK to compete in technology and startups with the US or on the world stage anymore.

Especially when you get this as common place salaries for tech jobs in the UK.

https://twitter.com/carbdiem/status/1813171794385215744

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I heard Twitter blocks Firefox (on Android?), and it has a login wall anyway now.
Tech wages in UK can't even compete with top places in EU/EEA anymore. USA is far level.
£1.3bn is a rounding error in the context of the AI domain anyway. They're simply not interested in nurturing or funding an IT Sector outside of some small domestic Financial Services plays like Monzo Bank. A fair cry from the days of Sinclair et al.
Same old story, The US Innovates, China Replicates, The EU regulates and the UK Stagnates.
Same old story.

The US runs an Economy, The EU runs a Society, and the UK mourns an Empire.

As a UK AI/biotech startup, we've been trying to get access to compute here in the UK but have found nothing (suggestions welcome).

We are getting free credits from US-based cloud companies but noticed they ask a lot of questions about our business model, technology and customers. That may be the objective of the free credits.

It makes me wonder if re-incorporating elsewhere would be beneficial.

If you have a constant baseline need for compute, just buy GPUs and run them in a colo or on-prem in your office (if power/cooling allows). If your workloads work on consumer hardware you can use consumer GPUs. Use on-demand cloud vendors only for peak/extra capacity.