UK Tech Pushes Back on Plan to Break Up DSIT
20 Jul 2026
Reported plans by incoming UK Prime Minister Andy Burnham to break up the Department for Science, Innovation and Technology (DSIT) are drawing sharp criticism from tech industry leaders, just as Burnham is set to be appointed PM on Monday.
According to the Financial Times, the plan would see DSIT dismantled, with Jonathan Reynolds expected to return as business secretary and potentially absorb science policy responsibilities as part of a wider departmental overhaul.
What's at stake
DSIT was created in 2023 under then-PM Rishi Sunak and has since overseen several flagship UK tech initiatives, including the AI Opportunities Action Plan, investment in sovereign AI compute, and the expansion of the AI Security Institute. Critics argue that folding these functions into a broader business department could disrupt or delay this work.
Three prominent voices in UK tech have publicly criticized the reported plans:
- Vinous Ali, deputy executive director at Startup Coalition, warned the changes would "undermine all that work" built up over DSIT's three-year existence.
- Ian Hogarth, partner at Plural and chair of the UK's AI Security Institute, said "Reorgs like this basically distract departments for a year."
- Matt Clifford, a former government AI adviser, called the reported plans "a big mistake."
What remains unclear
The report is based on FT sourcing rather than an official government announcement, so it's not confirmed whether this is settled policy or still under discussion. Key details are also missing: there's no indication of what would replace DSIT, how specific programs like the AI Security Institute would be restructured, or what timeline any overhaul would follow. It's also unclear whether Burnham has responded publicly to the criticism.
That said, a restructuring is not without a possible upside — some observers note it could realign science and technology policy more closely with business and industry priorities under Reynolds, though this remains speculative given the lack of detail.
Why founders should care
For founders in AI and deep tech, this is a development worth monitoring closely rather than reacting to immediately. If the reported plans go forward, programs like the AI Opportunities Action Plan and sovereign AI compute investment could plausibly face delays or restructuring as responsibilities shift between departments — a risk flagged directly by industry critics. Startups that rely on government funding, grants, or policy engagement through DSIT-linked bodies may face a period of uncertainty while any transition unfolds, particularly given Hogarth's assessment that reorganizations of this kind tend to distract departments for roughly a year. It's not yet clear how likely full implementation is, but founders operating in AI policy-adjacent spaces should watch for confirmation from the incoming government and be prepared for potential discontinuities in program administration during any handover.