European business, markets and politics
A detailed breakdown shows AI, cyber security and digital infrastructure are scattered across multiple departments, leaving staff and policy direction uncertain.

Almost two months after Andy Burnham dissolved the Department for Science, Innovation and Technology (DSIT), senior ministers have confirmed that several policy streams still lack a permanent home. A letter signed by Louise Haigh, Jonathan Reynolds and Lisa Nandy revealed that while most civil servants have been reassigned, a “small number of policy areas” remain in limbo.
The split sees artificial intelligence spread across three corners of Whitehall. Reynolds’ expanded business department will oversee AI growth, investment and infrastructure, together with semiconductors, quantum and robotics. The Office for the Prime Minister and Cabinet will inherit the AI Security Institute and the task of embedding AI across the Civil Service. An AI Taskforce, chaired by Lord Vallance, will set the overall strategy, while the AI Economics Institute will be shared between the prime minister’s office and the Treasury. Kanishka Narayan, the AI minister, will sit jointly in the Prime Minister’s office and the business department and attend Cabinet meetings.
Science and technology should not be treated as an “isolated issue, limited to one department”.
Lisa Nandy will take a sizeable slice of the former DSIT portfolio into her Department for Digital, Culture, Media and Sport. Her remit now includes cyber security, digital skills, broadband, digital government and oversight of the tech sector, alongside responsibilities for football, gambling, museums and the BBC. The Information Commissioner’s Office will also move under her watch, as ministers consider an independent review of the watchdog’s culture and governance.
Critics warned that dismantling DSIT risked “fragmented policy delivery and vital issues slipping down the agenda”. Dame Chi Onwurah, chair of the Science, Innovation and Technology Committee, demanded a clear breakdown after the abolition. Former DSIT permanent secretary Sarah Munby echoed those concerns, describing lingering confusion as “the enemy” of effective governance.
Industry bodies such as TechUK and the Startup Coalition have called the move “the wrong change at the wrong time”. Founders Forum founder Brent Hoberman likened it to “fixing something that wasn’t broken”. With AI regulation and digital infrastructure becoming central to economic growth, any delay or overlap could affect investment decisions and the UK’s competitive edge.
The government says most staff have already started in their new roles, but acknowledges that a handful of employees, particularly in corporate functions, will not receive final placement details until later this quarter. Formal transfers are slated for after that period.
Looking ahead, the success of the AI Taskforce and the coordination between the prime minister’s office, the Treasury and the business department will be key indicators of whether the new arrangement can deliver a coherent strategy. Observers will watch for signs of policy drift or duplication, especially as the UK prepares to implement its AI regulatory framework.
For further context on how AI policy is evolving in the UK, see Anthropic’s defence of its safety record amid AI risk warnings.