Incoming UK PM Burnham plans to abolish technology department
Incoming British prime minister Andy Burnham faces fierce internal and industry pushback over plans to dissolve the country's dedicated technology ministry at a critical juncture for European AI competitiveness.
Andy Burnham has instructed officials to draft plans to abolish the Department for Science, Innovation and Technology (DSIT) as part of a broader restructuring of the British civil service. The proposals would see science and tech policy absorbed into an expanded business department, reportedly to be led by Jonathan Reynolds. Oversight of artificial intelligence in the public sector would shift from a dedicated minister to the cabinet secretary, Antonia Romeo.
For European markets, the move threatens to destabilise one of the continent's most significant tech ecosystems just as the global race for AI dominance accelerates. The UK has traditionally anchored Europe's tech sector, supported by successes like DeepMind. However, recent deals signed by the outgoing government have already raised fears that the British AI industry is becoming a subsidiary of American tech giants.
The proposed abolition has triggered immediate alarm among investors, industry leaders and lawmakers. Matt Clifford, an AI adviser to outgoing prime ministers Keir Starmer and Rishi Sunak, warned that the timing was dangerous. "This would be a big mistake," he posted on X. "Right now is a critical moment for tech as an economic and national security issue. Tying up our most senior science and tech officials in a [reorganisation] wastes time and energy that’s desperately needed for the actual substance."
Venture capital and startup leaders echoed these concerns, arguing the portfolio would be sidelined by traditional industrial interests. Dom Hallas, executive director of the Startup Coalition, noted a merged department would force British tech to compete with British steel for attention. "And waste 6 months reorg-ing when time is of the essence," he added. "Not good." Technology investor Barney Hussey-Yeo warned that dismantling the department risks squandering a national competitive advantage in scientific capacity.
The backlash adds to growing unease within the Labour party over Burnham's transition strategy ahead of his official assumption of power on Monday. Lawmakers have privately described the move as "getting rid of the department of the future." This internal friction comes alongside concerns over other expected appointments, including the likely selection of Shabana Mahmood as chancellor.
Burnham is finalising his government blueprint this weekend before announcing his cabinet on Monday afternoon. While he is expected to focus his first policy announcements later this week on a cost-of-living package targeting housing, energy and transport, the tech dispute may yet force a reversal. Industry insiders suggest the incoming prime minister could abandon the DSIT closure within the next 48 hours.
