The UK's thriving tech scene is bracing itself for a potentially seismic shift as incoming Prime Minister Andy Burnham weighs up sweeping changes to the government's approach to artificial intelligence and technology. Rumours suggest that the Department for Science, Innovation and Technology (DSIT), a key driver of Britain's status as a global AI hub, could be axed or significantly revamped, sparking sharp criticism from tech leaders who warn this would be a 'big mistake'.
Industry heavyweights are sounding the alarm about the proposed shake-up, which would see DSIT's responsibilities redistributed between the Department for Business and Trade and the Department for Culture, Media and Sport. Critics argue that dismantling the department at this critical juncture could damage Britain's economic prospects and national security. With the UK currently boasting the world's third-largest tech ecosystem and Europe's largest AI startup market, ministers have actively sought to strengthen these positions over the past three years.
Brent Hoberman, founder of Founders Forum, expressed concern that the proposed changes would be akin to 'fixing something that isn't broken.' He warned investors would be seeking clear signals that technology remains central to Mr Burnham's economic growth plans. Matt Clifford, a former government AI adviser who helped shape Britain's AI strategy, similarly labelled the reported plans 'a big mistake,' stressing that the current moment is critical for tech concerning both economic prosperity and national security.
DSIT was established in 2023 to consolidate responsibilities for AI, research, digital regulation, and innovation under a single Secretary of State. Since its inception, the department has overseen significant initiatives, including the AI Opportunities Action Plan, the AI Security Institute, and the £500m Sovereign AI Fund. Industry bodies like techUK and the Startup Coalition have jointly warned Mr Burnham that abolishing DSIT would be 'the wrong change at the wrong time,' arguing that a machinery-of-government reshuffle would slow decision-making and create uncertainty for businesses.
While Mr Burnham has pledged to spread economic growth beyond London through greater devolution and regional investment, tech leaders caution that this ambition should build upon, rather than undermine, the UK's established tech strengths. Russ Shaw, founder of Global Tech Advocates, suggested that regional tech clusters could be strengthened, but not at the expense of a coherent national strategy.