Figures in the UK tech industry have warned incoming Prime Minister Andy Burnham against rumoured plans to break up the recently-formed Technology Department, citing fears that disruption will only hamper the progress of the industry. Reports over the weekend have claimed that the Burnham team is considering breaking up the
Oscar Hornstein
Figures in the UK tech industry have warned incoming Prime Minister Andy Burnham against rumoured plans to break up the recently-formed Technology Department, citing fears that disruption will only hamper the progress of the industry.
Reports over the weekend have claimed that the Burnham team is considering breaking up the Department for Science, Innovation and Technology (DSIT), with much of the responsibility over the tech industry being rolled into a souped up Business Department helmed by Jonathan Reynolds.
DSIT was formed in 2023 during the premiership of Rishi Sunak and has become responsible for overseeing the UK’s tech policy, research funding and managing relations and support for the country’s enormous tech industry.
In response to the rumoured breaking up of the department, leaders from the industry have warned of the impact of more unnecessary changes.
Dom Hallas, head of the Startup Coalition warned that requiring the tech industry to be lumped in with the rest of the remit of the Department for Business and Trade (DBT) would be a “mistake”.
“Changes to DSIT (which I’ve been getting calls about) would be a mistake. A mega department would mean British tech competing with British steel for attention. And waste 6 months reorg-ing when time is of the essence. Not good.”
Matt Clifford, a prominent tech entrepreneur who has served as one of the most senior AI advisors to the government echoed these concerns.
“This would be a big mistake. 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,” Clifford said.
Cleo founder Barney Hussey-Yeo added: “The UK has a major competitive advantage in its scientific capacity. Turning that strength into economic power — DSIT’s job — would be my idée fixe as Prime Minister.
“DeepMind is our biggest success story as a nation since the GFC. Imagine if we could create more companies like that and actually scale and list them in the UK.
“A $1 trillion company would dramatically turn around our GDP growth rate and allow us to fund everything the state wants to do today…”
Industry body techUK warned the move would “slow momentum at a time when pace is essential” and “send a terrible signal to the industry”.
“We want to be clear that this would be the wrong change at the wrong time.”
Andy Burnham will become the prime minister on Monday, with cabinet decisions expected shortly.
