Plans by incoming Prime Minister Andy Burnham to abolish the Department for Science, Innovation and Technology (DSIT) have ignited a fierce backlash from MPs, Whitehall officials, and technology experts.

As part of a broader Whitehall reorganization, Burnham has instructed officials to draft proposals for dismantling the department, though the plans have not yet received final approval. The prospect has nonetheless sowed deep unease among specialists both within the civil service and the wider tech sector.

The controversy adds to growing Labour Party apprehension regarding Burnham’s initial moves, notably the anticipated appointment of Shabana Mahmood as Chancellor.

Matt Clifford, who has advised both outgoing Prime Minister Keir Starmer and his predecessor Rishi Sunak on artificial intelligence, warned on X: “This would be a big mistake. Right now is a critical moment for tech as an economic and national security issue. Tying up our most senior science and tech officials in a [reorganisation] wastes time and energy that’s desperately needed for the actual substance.”

One Labour MP denounced the proposal as “getting rid of the department of the future.”

According to sources familiar with the discussions, Burnham’s team has asked officials to prepare plans transferring the bulk of science and technology policy to a beefed-up Business Department, to be headed by Chief Whip Jonathan Reynolds. Oversight of AI deployment across the public sector would fall to the Cabinet Secretary, Antonia Romeo, rather than a dedicated minister.

The proposals have alarmed the technology sector, where many argue that AI and advanced technologies are poised to dominate government policy for years to come. Foreign Secretary Yvette Cooper recently stated she believes AI will be the defining foreign policy challenge of the next two years. In a speech last year, Starmer described AI as “the defining opportunity of our generation.”

Proponents highlight the success of British firm DeepMind, acquired by Google in 2014, as proof of the UK’s potential for global leadership in the field. Critics, however, contend that a recent US tech agreement signed by Starmer risks reducing the British AI industry to a mere subsidiary of its American counterpart.

Dom Hallas, Executive Director of the Startup Coalition, posted on X: “Changes to DSIT (which I’ve been getting calls about) would be a mistake.” He added: “A mega [business] department would mean British tech competing with British steel for attention. And waste 6 months reorg-ing when time is of the essence. Not good.”

Technology investor Barney Hussey-Yoe said: “Sad to hear that Burnham’s team is considering closing DSIT. The UK has a major competitive advantage in its scientific capacity. Turning that strength into economic power – DSIT’s job – would be my idée fixe as prime minister.”

Burnham’s team is finalizing its government blueprint over the weekend ahead of Monday, when the Makerfield MP formally assumes office. He is expected to make his most significant cabinet appointments Monday afternoon, followed by a series of policy announcements later in the week.

These announcements are likely to include a cost-of-living package potentially addressing housing, energy, and transport costs. Some industry observers believe Burnham may reconsider the plan to shutter the technology department within the next 48 hours. A spokesperson for the incoming Prime Minister declined to comment.

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