Chancellor Philip Hammond will give details of the plans in a speech later.
Other defences that intercept booby-trapped emails or shut down thieves impersonating bank websites will also be expanded.
The strategy will also help enlarge specialist police units that tackle organised online gangs.
Some cash will go towards education and training of cybersecurity experts.
Mr Hammond is expected to formally launch the scheme, called the National Cyber Security Strategy, later today.
The plans will set out action needed to protect the UK economy and the privacy of British citizens, and will also encourage industry to ramp up efforts to prevent cyber-attacks.
Mr Hammond said Britain “must now keep up with the scale and pace of the threats we face”.
“Our new strategy… will allow us to take even greater steps to defend ourselves in cyberspace and to strike back when we are attacked,” he added.
Source: BBC News
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