Tyto Client Briefing: What Prime Minister Andy Burnham Could Mean for UK Tech

Andy Burnham, the former Mayor of Manchester, is set to replace Sir Keir Starmer as the UK’s Prime Minister on Monday, after being announced as the new Labour leader earlier today. Given the short time frame between Burnham becoming a Member of Parliament (MP) on 18 June and his appointment as Prime Minister just four weeks later, there remains a great deal of uncertainty about what his legislative agenda might look like. 

Whilst no announcements have yet been made about Burnham’s policy agenda, and his picks for his cabinet are also yet to be confirmed, British media have been speculating about what the new Prime Minister might mean for the country’s tech sector. There is a broad expectation that Burnham signals a shift away from the “pro-tech, attract US investment” approach of the previous government, and towards a more interventionist, sovereignty-focused industrial policy. 

Here are four key ways in which Burnham might change British tech policy once he forms a new government next week: 

A more interventionist AI and tech strategy 

Burnham allies have signalled that he will move away from what they coined the “unfettered tech boosterism” of the Starmer government, instead fostering an AI policy that focuses on “delivering benefits for British workers and domestic businesses” rather than simply accelerating AI adoption. Expect more scrutiny of new technologies with significant social impacts, such as AI platforms and autonomous vehicles, with a re-balancing of the focus of tech policy away from innovation and towards accountability and public value.  

There are expectations that Burnham will pursue a more regulatory approach to AI and technology, moving away from the laissez-faire approach of previous Conservative governments that was carried on by Starmer. 

An in-house tech procurement policy  

Ahead of his appointment as Prime Minister, Andy Burnham has reportedly told Labour MPs that he will “rein in government outsourcing” and bring public sector tech contracts in–house. This echoes similar reports earlier this month which suggested he would ditch Palantir technology from the National Health Service (NHS), potentially dismantling the Federated Data Platform currently being used to link the country’s regional hospitals and health trusts. 

Burnham is expected to review contracts with large US technology firms, and use public sector procurement to support British technology companies and innovation, as well as introducing greater weighting for social value in public contracts. 

Broad support for tech sovereignty 

The push to bring public tech contracts in-house mirrors a wider theme of greater technological sovereignty. Burnham supporters have signalled that their version of UK tech sovereignty involves greater backing for British AI companies, strengthening domestic capability and reducing strategic dependence on US cloud providers. As the Financial Times makes clear, there is some concern that the focus on tech sovereignty may veer into technology protectionism, which in turn may risk lower inward investment. 

The increased focus on tech sovereignty mirrors similar moves across Europe. In June, the EU launched a package of policies aimed at helping Europe to become a leader in AI and bolstering technological autonomy. The incoming Burnham administration in the UK looks set to emulate these policy objectives.   

Concerns over a less business friendly environment 

Entrepreneurs and investors from across the UK tech scene have raised concerns about the impact of some of Burnham’s purported economic policies. In a letter to the future Prime Minister, tech sector leaders warned of the impact that hikes in capital gains tax and the potential introduction of a wealth tax could have on the UK’s position as a leader in tech innovation. The letter also raised concerns about strict regulations making the commercialisation of technology harder, and the potential impact that a reduced openness to foreign tech investment might have on London’s status as a hub for founders. 

The technology industry in the UK has also signalled support for other elements of Burnham’s likely policy agenda, including strongly backing a renewed industrial strategy and backing for UK firms. However, there is concern about the impact of wider economic policies on the country’s tech sector.