Prime Minister Andy Burnham's recent cabinet reshuffle on July 20, 2026, saw the abolition of the Department for Science, Innovation and Technology (DSIT), a ministry established just three and a half years prior. DSIT's responsibilities, including its annual budget of $14.2 billion and a $58.5 billion long-term R&D allocation through 2029/30, have been absorbed into a new Department for Business, Innovation, Science and Trade (DBIST), led by Jonathan Reynolds. The "digital" brief has returned to the Department for Digital, Culture, Media and Sport (DDCMS), while public sector AI oversight has moved to the Cabinet Office.
This restructuring has generated significant apprehension within the tech and science sectors. Industry bodies like TechUK and the Startup Coalition had jointly warned Burnham against dismantling DSIT, arguing it would "slow momentum when pace is essential" and send negative signals to international investors. Sir Paul Nurse, President of the Royal Society, voiced concerns that losing a dedicated science voice could disrupt long-term research priorities. Former AI adviser Matt Clifford called the move a "big mistake," fearing that Whitehall reorganizations waste crucial time and energy needed for substantive delivery. Concerns were also raised about the potential for science to be diluted among other priorities within a larger department, especially given the UK's ambition to be a scientific superpower.
Despite the broader business community expressing some relief at Jonathan Reynolds' return as business secretary, given his previous role in developing the industrial strategy, the tech sector and life sciences investors remain wary. Chris Hollowood, CEO of Syncona, expressed unease, stating that while backing from a larger department "could be helpful," dilution among other priorities would be concerning. There is a strong immediate concern for continuity, with firms pressing the new government to honor an agreement to double spending on innovative medicines over the next decade in exchange for a three-year tariff exemption on pharmaceutical exports to the US.
However, the government maintains that artificial intelligence will continue to receive cabinet-level attention, with Kanishka Narayan appointed as the UK's new AI Minister, based in the Cabinet Office and attending Cabinet. Narayan highlighted this structural elevation as proof of Burnham's commitment to tech. Proponents of the change argue that consolidating business, science, and trade will foster a more coordinated industrial strategy, support investment, and accelerate economic development by streamlining the commercialization of British scientific breakthroughs. The debate centers on whether this merger will boost output or dilute strategic focus, particularly given the rapid global competition in AI and technology.
