Andy Burnham has abolished the Department for Science, Innovation and Technology (DSIT). His plan to scrap DSIT folds its work into a new business-led ministry, putting a department that managed over £15 billion in annual public funding and nearly 3,000 staff under a broader economic umbrella.
Many UK tech leaders fear this will stall progress at a crucial moment for the nation’s $1.4 trillion tech economy, though the government insists it will drive faster growth and better commercialise British innovation.
- Burnham scrapped DSIT on Monday, 20 July 2026, as part of his first major cabinet reshuffle.
- DSIT’s core duties move to the new Department for Business, Innovation, Science and Trade (DBIST), led by Jonathan Reynolds.
- Kanishka Narayan becomes the UK’s first dedicated AI minister to gain a seat at the Cabinet table.
- Digital strategy returns to the renamed Department for Digital, Culture, Media and Sport (DDCMS), while public sector AI moves to the Cabinet Office.
- Industry leaders warn the restructuring puts at risk momentum across a tech sector that attracts over 37% of all European venture capital.
Why Burnham Scrapped DSIT
Burnham axed the department as part of a wider Whitehall shake-up. His aim is to tie science and technology more tightly to industrial strategy and commercial returns. The BBC reported that he wants a single, unified ministry driving productivity across the economy.
DSIT (Department for Science, Innovation and Technology) was a relatively young ministry. Established on 7 February 2023 under Rishi Sunak, it consolidated tech, research, and digital responsibilities from legacy departments. During its 3.5-year lifespan, it oversaw an annual budget of £14.2 billion—including £10.02 billion distributed via UK Research and Innovation (UKRI)—and managed a £58.5 billion long-term R&D allocation through 2029/30. Overall, it lasted just under three and a half years before being subsumed.
Where DSIT’s Work Now Sits
Most of DSIT’s core portfolio now sits within the expanded Department for Business, Innovation, Science and Trade (DBIST), headed by Jonathan Reynolds. The ‘digital’ brief returns to the Department for Digital, Culture, Media and Sport (DDCMS), led by Lisa Nandy.
Meanwhile, responsibility for public sector AI adoption and oversight of the AI Security Institute (AISI) moves directly into the Cabinet Office, placing artificial intelligence policy at the heart of central government operations.
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Why UK Tech Leaders Are Revolting Over Burnham’s Machinery Changes
Table – European Tech Ecosystems: UK vs. Key Competitors
| Country | Annual VC Investment | Active Unicorns ($1B+) | Top Hub Ecosystem Value | Primary Sector Strengths |
|---|---|---|---|---|
| United Kingdom | $17.0 Billion | 185 | London ($438 Billion) | AI, FinTech & Quantum |
| France | $8.5 Billion | 60 | Paris ($169 Billion) | Sovereign AI & Deep Tech |
| Germany | $8.4 Billion | 74 | Berlin ($89 Billion) | Industrial AI & Enterprise Software |
Source: Compiled from Dealroom, PitchBook, and Startup Genome Global Ecosystem Data.
The UK technology sector—home to more than 150 billion-dollar “unicorns” and $23.7 billion in annual venture capital investments—reacted with alarm. Matt Clifford, former AI adviser to two prime ministers, warned bluntly: “This would be a big mistake,” adding that Whitehall reorganisations waste critical time and energy needed for substantive delivery.
Startup Coalition chief Dom Hallas cautioned that a mega-department would mean “British tech competing with British steel for attention.” He estimated that up to six months of progress could be lost during administrative restructuring, at a time when global competition in AI is accelerating.
Industry body techUK joined forces with startup leaders, warning Burnham that the shift risks “slowing momentum when pace is essential” and sending negative signals to international investors. Sir Paul Nurse, President of the Royal Society, noted on BBC Radio 4 that losing a standalone science voice could disrupt long-term research priorities.
AI Still Gets A Cabinet Voice
Despite the departmental closure, the tech sector gained a significant political milestone: Kanishka Narayan was promoted to Minister of State for Artificial Intelligence with a seat at the Cabinet table. Born in Bihar, India, and raised in Cardiff, the 36-year-old MP for the Vale of Glamorgan previously served as a junior minister for AI and online safety.
Narayan highlighted the structural elevation as proof of Burnham’s commitment to tech, stating: “AI is likely the most significant technology in human history. Its impact will dwarf other things.” Businesses are already exploring AI tools to improve efficiency, reduce costs, and automate creative workflows. He also acknowledged public anxieties around job security and economic transition.
What It Means For UK Tech Growth
The debate centers on whether merging science into business will boost output or dilute strategic focus. Proponents point out that every £1 of public R&D spent in the UK generates £8 in long-term net economic benefits and leverages £2 in private sector investment. Unifying trade, business, and innovation could streamline the commercialisation of British scientific breakthroughs.
However, critical infrastructure bottlenecks remain. Managing the UK’s growing AI workload requires massive compute power, supported by the government’s £900 million Bletchley super-compute initiative and £25 billion in private AI investments. Industry analysts stress that grid connection delays and energy costs present bigger obstacles to growth than ministry names.
For now, the primary risk is operational delay. If the DBIST transition stalls, the UK risks losing ground during a key window for global AI policy and technological leadership.
FAQs
Q1. What Was DSIT, And How Large Was Its Budget?
DSIT was the Department for Science, Innovation and Technology, established in February 2023. It managed an annual budget of over £14–15 billion and employed approximately 2,970 civil servants.
Q2. Why Did Andy Burnham Scrapping DSIT?
Prime Minister Andy Burnham sought to integrate science, research, and tech directly with business, trade, and commercial growth under one unified ministry (DBIST).
Q3. Which Department Now Leads On AI And Technology?
General technology policy sits within the new Department for Business, Innovation, Science and Trade (DBIST). AI strategy and public sector adoption have moved to the Cabinet Office, led by AI Minister Kanishka Narayan.
Q4. Who Is The UK’s New AI Minister?
Kanishka Narayan is the UK’s first dedicated Minister of State for Artificial Intelligence to attend Cabinet meetings, holding joint responsibilities across the Cabinet Office and DBIST.
Q5. How Large Is The UK Tech Economy?
The UK technology market is valued at $1.4 trillion (£1.1 trillion). It attracts over $23 billion annually in venture capital and is home to over 150 tech unicorns.
Sources & References
- THINK Digital Partners. (2026, July 21). Government abolishes DSIT as AI minister Kanishka Narayan gains Cabinet seat. THINK Digital Partners News.
- Research Professional News. (2026, July). Jonathan Reynolds named Science Secretary in DBIST merge; Royal Society raises concerns. Research Professional News – UK Politics.
- Wikipedia. (2026). Department for Science, Innovation and Technology. In Wikipedia.
- National Audit Office. (2025, December). Department for Science, Innovation and Technology: Financial overview & expenditure reports (2024–25). NAO Official Report.
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