UK tech trade associations hit out amidst reports DSIT could be scrapped
The move could see the DSIT incorporated within a larger business department
UK tech industry stakeholders have hit back at alleged plans to scrap the Department of Science, Innovation and Technology (DSIT).
TechUK, a trade association for the country’s digital sector, described the rumoured move as a “terrible signal” for a burgeoning industry, which it noted is growing at a rate of 10% per year.
“Breaking up the work of DSIT endeavours such as the world-leading AI Safety Institute, the Sovereign AI Fund, GDS, and UKRI would slow momentum at a time when pace is essential for both the growth of the economy and our standing on the global stage,” techUK said in an open letter published on 19 July.
The backlash comes after the Financial Times reported on 17 July that incoming prime minister Andy Burnham plans to abolish the department.
Sources told the publication that advisers are creating plans to hand over technology policy to a larger business department, led by former business secretary Jonathan Reynolds.
ITPro approached the DSIT for comment, but did not receive a response by time of publication.
The move would see a return to a similar setup for science and technology policy prior to the foundation of the department in 2023.
The DSIT was formed under Rishi Sunak’s premiership and given direct responsibility for policy on these fronts. The department now plays a key role in driving growth in key digital sectors and leading digital transformation across public services.
According to Dom Hallas, executive director of the Startup Coalition, attempts to incorporate DSIT within a broader business department could dilute its influence and negatively impact the broader technology sector.
“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,” Hallas said in a post on X.
Matt Clifford, AI adviser to outgoing prime minister Keir Starmer, echoed Hallas’ comments in a post on X.
“This would be a big mistake,” he wrote. “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.”
Tim Flagg, CEO of trade association UKAI, took a different view, however, saying that while an overhaul of the department might cause disruption, the creation of a “super-department” could ultimately sharpen the country’s focus on AI.
“AI has the potential to transform Britain’s economy, our public services, and our security for a generation. Rethinking which department oversees this industry does not necessarily mean Burnham’s Britain is turning its back on that potential,” he said.
“It could even signal an ambition to go further: AI elevated into a super-department or placed at the very heart of the Cabinet Office. The real danger isn’t the ambition; it’s the distraction and the delay.”
All-in on AI
A recurring theme in the pushback to the proposals lies in the timing and current tech sector trends.
The UK government has placed a strong focus on supporting the UK’s burgeoning AI sector over the last two years under the premiership of Keir Starmer, with the aim of positioning the country as a leading economy on this front.
When Downing Street announced the AI Opportunities Action Plan, Starmer described the technology as the “defining opportunity of our generation”.
2025 saw a host of major global tech firms, including Nvidia and Microsoft, pledge billions in support for the UK tech sector, with a particular focus on infrastructure build-outs.
Additional hardware and skills-related investment was unveiled by Downing Street at London Tech Week last month.
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