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Home » Andy Burnham’s potential plan to scrap government’s technology department sparks backlash from tech industry
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Andy Burnham’s potential plan to scrap government’s technology department sparks backlash from tech industry

Business Circle TeamBy Business Circle TeamJuly 20, 2026No Comments4 Mins Read
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Andy Burnham’s potential plan to scrap government’s technology department sparks backlash from tech industry
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Andy Burnham ©Home of Commons

Stories that incoming new prime minister Andy Burnham is contemplating shutting down the Division for Science, Innovation and Know-how (DSIT) has led to anger from tech entrepreneurs and specialists.

In line with the Monetary Instances, officers have been requested to attract up plans to shut DSIT and transfer its duties to the Division for Enterprise and Commerce and the Division for Tradition, Media and Sport.

Though a Labour supply informed the FT “it  must be mainstreamed and there may be the sense that DSIT has not been firing on all cylinders”, figures within the know-how trade have mentioned Burnham shouldn’t approve the plan.

In a letter despatched to the brand new prime minister, Julian Harris, CEO at Tech UK, and Dom Hallas, government director at Startup Coalition, mentioned it will be “the improper change on the improper time”.

The letter continues:

“DSIT works as a result of it brings researchers, AI practitioners, innovators and policymakers collectively in a single division – a single entrance door that provides the tech sector readability, tempo and a authorities associate that understands know-how and champions the sector within the Cupboard.

“Breaking apart the work of DSIT endeavours such because the world-leading AI Security Institute, the Sovereign AI fund, GDS and UKRI would sluggish momentum at a time when tempo is crucial for each the expansion of the economic system and our standing on the worldwide stage. It additionally sends a horrible sign to a sector that’s rising at 10% a 12 months. That is clear from the rapid response of the sector to those experiences to date.

“We’re supportive of your imaginative and prescient to deliver progress to each postcode in Britain, and we wish you to have the ability to leverage the tech sector to ship in your ambitions to vary our economic system and society for the higher. To take action, we should always use this second to strengthen tech management on the coronary heart of presidency, not dismantle it.”

Additionally criticising the closure of DSIT was Matt Clifford, who was Keir Starmer’s AI alternatives adviser. Writing on X, he mentioned:

“This may be an enormous mistake. Proper now’s a crucial second for tech as an financial and nationwide safety situation. Tying up our most senior science and tech officers in a reorg wastes time and power that’s desperately wanted for the precise substance.”

Responding on X, Labour MP Peter Fortune mentioned:

“I agree. DSIT does want focus however it’s critical we promote our wonderful tech sector if we’re going to encourage progress and innovation. Our AI sector (because of Matt for the whole lot he has performed) is superb – nevertheless it could possibly be even higher. We have to sign our willpower to guide.”

Some entrepreneurs nonetheless mentioned DSIT must be changed. Commenting to a publish by Dom Hallas on LinkedIn, Atif Syed, founding father of Wootzano, mentioned:

”It’s positively a daring transfer, however let’s be trustworthy – DSIT is in want of a severe overhaul to radically assist tech companies on the bottom. I stay up for seeing what is going to substitute it and the way the brand new administration intends to again our sector.”

Information of DSIT’s potential closure comes forward of Andy Burnham taking on on Monday as prime minister to run a authorities he pledged can be “pro-business”.

He’s additionally resulting from announce his new Cupboard. The Monetary Instances mentioned Jonathan Reynolds may return as enterprise secretary. Shabana Mahmood and Ed Miliband are amongst these cited as the brand new chancellor.

The Telegraph claimed Angela Rayner is being “lined up” to be well being secretary, and, regardless of the risk to DSIT, Burnham is regarded as planning to nominate an AI minister at Cupboard degree.

We’ll have full protection on SMEWeb of Andy Burnham’s new Cupboard bulletins.



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