Andy Burnham has promised to put technology and innovation at the heart of his plans to “rewire Britain”.
But within hours of becoming Prime Minister, reports that his new government is considering abolishing the Department for Science, Innovation and Technology (DSIT) have prompted concern from Northern tech leaders, who fear any loss of focus could undermine one of the UK’s fastest-growing sectors.
According to reports, Burnham is considering a Whitehall reorganisation that would see DSIT folded into a larger business department, although no final decision has been announced. At the same time, Kanishka Narayan has been confirmed as dedicated AI minister as part of his new administration. Those reports have already prompted concern from across the wider technology sector.
Many of the North’s leading technology figures have questioned whether this is the right moment to reorganise the machinery of government.
‘The wrong move at the wrong time’
Katie Gallagher OBE, managing director of Manchester Digital and chair of the UK Tech Cluster Group, believes technology should become even more central to government—not less.
“If the rumours about DSIT are true, abolishing it would be the wrong move at the wrong time,” she said. “AI and emerging technologies are reshaping every sector, so we need stronger national leadership on technology, not a weaker or more fragmented approach.”
Gallagher argues that the North is already home to thriving technology ecosystems across Greater Manchester, Liverpool, Leeds, Sheffield and Newcastle, with strengths spanning AI, cyber security, fintech, health innovation, gaming, data and advanced manufacturing.
Rather than diluting the UK’s technology focus, she believes government should use those strengths to drive productivity across the wider economy.
“The second would be to make the North a serious testbed for technology adoption and productivity. That means practical support for AI adoption, better routes for startups and scaleups into public sector procurement, long-term investment in digital skills, and national programmes that are properly connected to regional tech ecosystems.”
‘AI policy is economic policy’
Professor Richard Whittle, Professor of Artificial Intelligence and Public Policy at the University of Salford, believes the debate goes well beyond the future of a single government department.
“Artificial intelligence has an important role to play, but we need to stop thinking of AI purely as a technology issue,” he said. “AI policy is economic policy.”
He argues that AI should be viewed through the lens of productivity, industrial strategy and regional economic growth rather than as a standalone technology agenda. He said: “The meaningful questions are about productivity, labour markets, industrial strategy and ensuring that the benefits of AI are shared across people and places rather than becoming concentrated in a small number of sectors or organisations.”
Whittle welcomed Burnham’s wider commitment to place-based economic growth but warned that technology alone cannot solve Britain’s productivity challenges. “AI is not a silver bullet for the UK’s productivity challenges,” he warned. “Nor can it overcome decades of underinvestment on its own. However, where strong economic fundamentals exist, AI can become a powerful catalyst for innovation, higher productivity and sustainable growth.”
Regulation can’t stand still
Tony Kounnis, CEO of Face Int UK & Europe, said maintaining momentum around technology policy would be critical if departmental responsibilities change.
“The start of Andy Burnham’s premiership is inevitably going to trigger a lot of change,” he said. “However, while attention will focus on how the new PM tackles major economic and social challenges, there are many other policy areas requiring urgent attention, and technology is one.”
He said any delay to technology policy caused by restructuring government could prove costly. “As an industry valued at £1.2 trillion, it’s crucial we don’t take our foot off the gas now. Technology, one of the UK’s priority sectors, is vital to economic growth. Any delays to sector investment and policy development caused by the redistribution of DSIT’s responsibilities could be costly.”
He also called for continued progress on regulating facial recognition technology. “Whether by police or in the private sector, the use of FRT should be accompanied by a clear explanation of why it is being used, what problem it is solving and how people’s data is being protected.”
Continuity matters
The concerns echo those raised by Northern technology leaders before Burnham entered Downing Street. Stuart Clarke MBE, founder of Leeds Digital, Paceline and UK Tech Week, previously told Prolific North that continuity at the top of government should be a priority.
“The current Secretary of State at DSIT and her Ministers are probably the most competent and respected in many years,” he said. “I understand that Burnham will want to change much of Starmer’s team, to show he’s bringing real change, but don’t change DSIT. We need continuity in the tech world, with people at the top of their briefs.”
Others, however, have argued Burnham’s own record gives the sector reasons for optimism.
Ray Law, founder of Manchester-based financial wellbeing platform moneyappi, said Burnham had consistently recognised that successful technology ecosystems are built through investment in skills, education, transport and opportunity—not technology policy alone.
Richard Potter, GM and VP at UiPath, meanwhile said the incoming Prime Minister had an opportunity to be “even more ambitious” by creating the conditions for technology companies to scale while balancing AI governance with growth.
