Plans to scrap UK tech ministry draw industry backlash
Reports that incoming prime minister Andy Burnham will dismantle the UK's dedicated science and tech department have sparked warnings that the move will derail the country's AI agenda at a critical juncture for European competitiveness.
Incoming UK prime minister Andy Burnham is facing a severe backlash from the country's technology sector over reports that he plans to dismantle the Department for Science, Innovation and Technology (DSIT). Burnham, who is set to be appointed on Monday, is reportedly considering folding parts of the three-year-old department into a strengthened business department led by returning business secretary Jonathan Reynolds. Other responsibilities would be scattered across Whitehall.
For European investors and tech companies, the proposed upheaval threatens to destabilise a major regional tech hub at a fragile moment. DSIT was established in 2023 by former prime minister Rishi Sunak to unify the government's approach to science, AI and digital regulation. The department is currently spearheading initiatives vital to the UK's competitive edge, including the AI Opportunities Action Plan, the expansion of the AI Security Institute, and investments in sovereign AI compute. Markets and startups seeking regulatory clarity now face the prospect of a fragmented bureaucratic landscape just as these flagship programmes transition from planning to execution.
Startup founders and investors have been swift to condemn the reported move. Vinous Ali, deputy executive director at Startup Coalition, argued that DSIT has only just found its footing. "After [three] years DSIT is now established — changes would undermine all that work," he wrote. "They're just moving out of strategy and into implementation in areas like compute and online safety — reorg would be a BIG distraction."
The criticism extends to those operating at the highest levels of AI policy. Former government AI adviser Matt Clifford described the plans as "a big mistake", pointing to the broader economic stakes. "Right now is a critical moment for tech as an economic and national security issue," he wrote. "Tying up our most senior science and tech officials in a reorg wastes time and energy that's desperately needed for the actual substance."
There are also stark warnings that the reorganisation will trigger a brain drain within the civil service. Ian Hogarth, partner at Plural and chair of the UK's AI Security Institute, warned that restructuring paralyses government effectiveness. "Reorgs like this basically distract departments for a year," he wrote. "If you're serious about growth as your top priority it's not something you do. The best civil servants I've worked with are there to have impact. If you chew their days up with these kind of random re-orgs, the best people move on."
