Reports that incoming new prime minister Andy Burnham is considering shutting down the Department for Science, Innovation and Technology (DSIT) has led to anger from tech entrepreneurs and experts.
According to the Financial Times, officials have been asked to draw up plans to close DSIT and move its responsibilities to the Department for Business and Trade and the Department for Culture, Media and Sport.
Although a Labour source told the FT “it needs to be mainstreamed and there is the sense that DSIT has not been firing on all cylinders”, figures in the technology industry have said Burnham should not approve the plan.
In a letter sent to the new prime minister, Julian Harris, CEO at Tech UK, and Dom Hallas, executive director at Startup Coalition, said it would be “the wrong change at the wrong time”.
The letter continues:
“DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department – a single front door that gives the tech sector clarity, pace and a government partner that understands technology and champions the sector in the Cabinet.
“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. It also sends a terrible signal to a sector that is growing at 10% a year. This is clear from the immediate reaction of the sector to these reports thus far.
“We are supportive of your vision to bring growth to every postcode in Britain, and we want you to be able to leverage the tech sector to deliver on your ambitions to change our economy and society for the better. To do so, we should use this moment to strengthen tech leadership at the heart of government, not dismantle it.”
Also criticising the closure of DSIT was Matt Clifford, who was Keir Starmer’s AI opportunities adviser. Writing on X, he said:
“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.”
Responding on X, Labour MP Peter Fortune said:
“I agree. DSIT does need focus but it is vital we promote our excellent tech sector if we are going to encourage growth and innovation. Our AI sector (thanks to Matt for everything he has done) is amazing – but it could be even better. We need to signal our determination to lead.”
Some entrepreneurs however said DSIT needs to be replaced. Commenting to a post by Dom Hallas on LinkedIn, Atif Syed, founder of Wootzano, said:
”It’s definitely a bold move, but let’s be honest – DSIT is in need of a serious overhaul to radically support tech businesses on the ground. I look forward to seeing what will replace it and how the new administration intends to back our sector.”
News of DSIT’s potential closure comes ahead of Andy Burnham taking over on Monday as prime minister to run a government he pledged will be “pro-business”.
He is also due to announce his new Cabinet. The Financial Times said Jonathan Reynolds could return as business secretary. Shabana Mahmood and Ed Miliband are among those cited as the new chancellor.
The Telegraph claimed Angela Rayner is being “lined up” to be health secretary, and, despite the threat to DSIT, Burnham is thought to be planning to appoint an AI minister at Cabinet level.
We’ll have full coverage on SMEWeb of Andy Burnham’s new Cabinet announcements.