Change of prime minister seen as a chance to improve tech sector

The arrival of Andy Burnham as prime minister has naturally provided the tech industry and business groups with an opportunity to outline their hopes and proffer some advice to the Labour leader.

After an unopposed Labour leadership nomination process, Burnham stepped into the shoes previously filled by Keir Starmer yesterday and outlined his ambition to reshape the narrative across the country and “bring back hope”.

His comments and efforts to restructure government departments and appoint a new cabinet drew reactions from various industry stakeholders, many of whom responded positively to the early signals regarding artificial intelligence (AI) and fostering business expansion.

Mark Boost, CEO of Civo, welcomed the decision to merge the Department for Science, Innovation and Technology (DSIT) into an expanded Department for Business and Trade, under the leadership of secretary of state for business and trade Jonathan Reynolds.

“The key will be ensuring tech doesn’t get diluted by traditional business priorities. In a fast-moving AI arms race, we cannot afford to lose momentum. But with 90% of IT leaders calling for a more proactive government stance, this unified department has a clean mandate to embed tech sovereignty directly into the UK’s primary economic and industrial strategy,” he said.

Boost also welcomed the decision to have an AI minister, Kanishka Narayan, viewing it as an opportunity to ensure the technology is represented at a senior government level.

“Giving the AI minister direct access to cabinet decisions demonstrates that the government recognises AI’s existential importance to our future economy. Positioned inside a high-powered business and trade department, an AI minister with Cabinet authority will have real leverage to break down cross-Whitehall silos, accelerate national AI infrastructure, and give British tech companies the proactive backing needed to maintain a competitive global advantage,” he said.

This is a golden opportunity to restart the Parliament, go for growth, and get it right on supporting small businesses

For Roy Shelton, group CEO of Doncaster-based managed service provider (MSP) Connectus Business Solutions, the arrival of a northern prime minister presents a chance to boost the region.

“Investment in cyber skills is virtually a no-brainer, as around half of all UK businesses have reported a skills gap for basic technical cyber skills and a 30% gap in more advanced areas,” he said. “Getting the north to be a powerhouse of production is going to require improved connectivity and investment in cyber to close those gaps.

“Andy Burnham showed with the Bee Network that the north can build world-class infrastructure when it’s handed the powers to do it,” he added.

Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), also urged the prime minister to create the conditions to support business growth. “This is a golden opportunity to restart the Parliament, go for growth, and get it right on supporting small businesses,” she said.

“The new prime minister has set out a positive, pro-small business stall in recent weeks, and we are optimistic that he can galvanise the new government to make these plans a reality. That will mean reworking the mistakes on business rates made by the last government, by increasing Small Business Rate Relief, acting on costs after the sledgehammer of National Insurance rises, and scrapping pointless paperwork that holds business back,” McKenzie added.

“For the prime minister to get growth in every postcode, he needs to back the UK’s 5.7 million small businesses, which are at the heart of local economies and communities right across the country,” she concluded.