The People's Chamber
ISSUE 80
JUN 19-25, 2026
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Department for Science, Innovation and Technology

AI policy, R&D spending, broadband. The department charged with persuading the rest of Whitehall that the future will, in fact, arrive.

The Rt Hon Liz Kendall MP

The Rt Hon Liz Kendall MP

Secretary of State for Science, Innovation and Technology

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The Department for Science, Innovation and Technology is the youngest department in Whitehall, created in February 2023 when the Department for Business, Energy and Industrial Strategy was broken up. It has already had three Secretaries of State: Michelle Donelan (under the Conservatives), Peter Kyle and Liz Kendall. Three leaders in three years for the department tasked with positioning Britain at the frontier of technologies that take decades to develop. It is supported by 12 agencies and public bodies, including UK Research and Innovation, the AI Security Institute and the Advanced Research and Invention Agency.

The money is not small. DSIT's R&D budget is £13.9 billion in 2025/26, including £8.8 billion for UKRI. Total government R&D investment stands at £20.4 billion. At the 2025 Spending Review, the Chancellor announced record public R&D investment of £86 billion across the spending review period from 2026/27 to 2029/30, of which £58.5 billion flows through DSIT. UKRI receives £38.6 billion. Every £1 of public R&D investment is estimated to deliver £8 in net economic benefits over the long term and to crowd in a further £2 of private investment. On that basis, this is one of the highest return areas of government spending. The question is whether the returns are materialising.

Britain's scientific credentials are not in dispute. British universities consistently rank among the best in the world. The UK's field weighted citation impact, a measure of research influence, is among the highest globally. British researchers make significant contributions across medicine, engineering, computing and the physical sciences. The country produces academic output that punches well above its population weight. What happens after the paper is published is where the story changes.

For decades Britain has developed promising technologies only to see the economic rewards flow elsewhere. Companies grow, attract investment and get acquired by overseas firms or relocate to larger markets. The UK's business expenditure on R&D remains lower as a share of GDP than in the United States, Germany, Japan or South Korea. The department's own performance metrics track the number of new UK unicorns and the value of equity investment into R&D intensive businesses. Those metrics exist because the problem they measure is real: Britain generates ideas at the top of the global league table and commercialises them somewhere in the middle.

The UK Compute Roadmap commits £1 billion to expanding the country's computing capacity twentyfold within five years. The AI Security Institute receives £66 million for continued investment in understanding the risks posed by advanced AI. ARIA, the Advanced Research and Invention Agency modelled on the American DARPA, receives £184 million for high risk, high reward research. Horizon Europe participation is fully funded, giving UK researchers access to the world's largest programme of research cooperation, worth more than £80 billion. These are serious commitments.

Digital infrastructure tells a less comfortable story. Over £500 million is being spent in 2025/26 on Project Gigabit and the Shared Rural Network. Gigabit capable broadband coverage has expanded significantly. But parts of the country still experience uneven connectivity. Businesses and remote workers in rural and semi rural areas know the gap between the government's digital ambitions and what their broadband delivers. A department that talks about artificial intelligence transforming the economy should first ensure the infrastructure exists for ordinary businesses to send an email without buffering.

A recurring weakness is the department's tendency to measure success through inputs and announcements. Billions invested. Strategies published. Conferences hosted. Frameworks launched. The public is entitled to ask when those inputs become visible in wages, productivity and living standards. Productivity growth averaged 0.6 percent from 2010 to 2019. The UK saw the largest fall in productivity growth of any G7 nation. If British science is world class and British R&D investment is at record levels, the gap between those facts and the productivity data needs explaining.

The department can point to genuine strengths. Britain remains a global centre for scientific research. The technology sector contributes significantly to economic output. Companies like Oxford Nanopore, ARM and DeepMind demonstrate that British innovation can compete at the highest level. DSIT's funding settlement is the largest R&D commitment in British history.

What concerns observers is the structural pattern: brilliant research, weak commercialisation, companies acquired or relocated, and a productivity record that refuses to match the science. The department is three years old, already on its third Secretary of State, and responsible for technologies that will define the next 50 years of economic competition. Whether Britain captures the value of its own discoveries or watches them generate wealth in San Francisco, Shanghai and Seoul is the question this department was created to answer. On that measure, the jury is not out because the trial has barely started.

Budget · 2025/26

£28bn
Resource DEL £16bn · Capital DEL £13bn

Created in February 2023 by carving science, AI, telecoms and digital policy out of BEIS and DCMS. The dominant line is UK Research and Innovation, the £8.8 billion umbrella that funds the seven research councils plus Innovate UK and Research England. Capital DEL includes £1 billion of Horizon and Copernicus contributions following UK re-entry. Smaller administration budget of £377 million for the department itself.

Agencies & Arm's Length Bodies (13)

  • Building Digital UK (BDUK)

    Building Digital UK (BDUK) is helping to bring fast and reliable broadband and mobile coverage to hard to reach places across the UK - transforming people’s lives and driving economic growth.

  • Copyright Tribunal

    The Copyright Tribunal aims to resolve UK commercial licensing disputes between copyright owners or their agents (collective management organisations) and people who use copyright material in their business.

  • Government Chemist

    We resolve scientific disputes mainly in the food and feed sectors, give advice to regulators and industry, and carry out research. Government Chemist is part of the Department for Science, Innovation and Technology .

  • Government Digital Service (GDS)

    We are the digital centre of government. We serve the public, central government departments and the wider public sector. GDS is part of the Department for Science, Innovation and Technology .

  • Government Office for Science (GO-Science)

    The Government Office for Science’s mission is to put excellent science advice at the heart of decision making. GO Science works with the Department for Science, Innovation and Technology .

  • Government Office for Technology Transfer (GOTT)

    GOTT helps accelerate government’s innovations towards the market, to impact growth and deliver new products and services for citizens. GOTT is part of the Department for Science, Innovation and Technology .

  • Intellectual Property Office (IPO)

    The Intellectual Property Office (IPO) is the official UK government body responsible for intellectual property (IP) rights including patents, designs, trade marks and copyright.

  • Office for Digital Identities and Attributes (OfDIA)

    The Office for Digital Identities and Attributes enables the use of trusted digital identity services in the UK. OfDIA is part of the Department for Science, Innovation and Technology .

  • Office for Life Sciences (OLS)

    The Office for Life Sciences champions research, innovation and the use of technology to transform health and care service.

  • Regulatory Innovation Office (RIO)

    The Regulatory Innovation Office (RIO) updates regulation, speeds up approval times and ensures regulatory bodies work together effectively. RIO is part of the Department for Science, Innovation and Technology .

  • Research Collaboration Advice Team (RCAT)

    We provide advice to research institutions on the national security risks linked to international research. RCAT is part of the Department for Science, Innovation and Technology .

  • UK Council for Internet Safety (UKCIS)

    The UK Council for Internet Safety (UKCIS) is a collaborative forum through which government, the tech community and the third sector work together to ensure the UK is the safest place in the world to be online.

  • UK Space Agency

    The UK Space Agency sets the national direction on space. The UK Space Agency is part of the Department for Science, Innovation and Technology .

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