Andy Burnham’s reported plan to scrap a key government department risks disrupting the technology agenda, according to senior figures.
The incoming prime minister wants to break up the Department for Science, Innovation and Technology (DSIT) at what is seen as a critical moment, with a range of startup and breakthrough developments requiring government support.
While Mr Burnham is looking to strengthen the business department, there are concerns that the focus on science and technology could be diluted.
According to the Financial Times, Jonathan Reynolds is expected to return as Business Secretary, with science policy potentially moving under his remit as part of a wider departmental overhaul.
However, tech publication Sifted says that dismantling the three-year-old DSIT has dismayed startup founders, investors and tech policy leaders, who feel it would mean another time-consuming reset after progress has been made delivering on the UK’s AI and digital ambitions.
Writing on X, Vinous Ali, deputy executive director at Startup Coalition said: “DSIT is now established — changes would undermine all that work. They’re just moving out of strategy and into implementation in areas like compute and online safety — reorg would be a BIG distraction.”
Ian Hogarth, partner at Plural and chair of the UK’s AI Security Institute, also argued that a full departmental restructure would come at a significant cost.
“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.”
Similar sentiments have been expressed by former government AI adviser Matt Clifford who described the reported plans as “a big mistake”.
He added: “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 reorg wastes time and energy that’s desperately needed for the actual substance.”
DSIT was created in 2023 under former prime minister Rishi Sunak to bring together responsibility for science, AI, digital regulation and innovation.
Since then it has overseen flagship initiatives including the UK’s AI Opportunities Action Plan, investment in sovereign AI compute and the expansion of the AI Security Institute.
Burnham’s ‘pro-business’ agenda
Beyond the proposed DSIT change, Mr Burnham wants much more focus on “early investment” to ensure that the British state is “setting people up for success” rather than paying for failure.
There are hopes this may see him revisit a range of taxes on business, including tax reliefs for entrepreneurs, and additional support for funders such as the British Business Bank.
It was reported at the weekend that Mr Burnham will approve more oil and drilling in the North Sea but will stick to a manifesto commitment not to allow new fields.
He is likely to cut the cost of energy for households and businesses and raise the tax-free personal allowance which has been frozen at £12,570 for five years.
His longer term aims include taking public control of utilities, overhauling social care and ushering in the biggest programme of council house building since the post-war period.
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