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UK tech advocates alarmed by Burnham plan to scrap technology department

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Kiran Stacey Policy editor

July 19, 2026
UK tech advocates alarmed by Burnham plan to scrap technology department

Incoming Prime Minister Andy Burnham is signaling a major shift in government priorities by scrapping plans for a national digital ID scheme. Additionally, his proposal to abolish the Department for Science, Innovation and Technology has sparked significant backlash from tech experts and political insiders.

A Shift in Governance: The Burnham Era Begins

Incoming Prime Minister Andy Burnham has initiated a dramatic pivot in the UK's governing agenda, marking a clear departure from the policies championed by his predecessor, Sir Keir Starmer. The most immediate change involves the abandonment of a proposed national digital ID scheme, a project previously touted by Starmer as a key tool for modernizing the state and streamlining access to essential services. By prioritizing the immediate cost-of-living crisis over this £1.8 billion initiative, Burnham is signaling a commitment to 'everyday life' and local economic stability over large-scale national infrastructure projects.

The Fate of the Digital ID Scheme

The decision to scrap the digital ID project reflects a strategic choice to conserve public resources during a period of economic uncertainty. Originally designed to curb illegal immigration and simplify identity verification for citizens, the program faced significant scrutiny regarding its multi-billion-pound price tag. The Office for Budget Responsibility’s estimate of £1.8 billion over three years served as a focal point for the criticism, and by choosing to halt this, Burnham is attempting to distance his administration from what he characterizes as 'expensive national government schemes' that do not offer immediate relief to the public.

Institutional Turbulence: The Tech Department Controversy

Beyond the digital ID, Burnham is facing intense scrutiny for his proposal to abolish the Department for Science, Innovation and Technology (DSIT). This structural shake-up has been met with immediate resistance from MPs, Whitehall officials, and industry experts. The move is viewed by many as a step backward in an era where technological sovereignty and AI development are considered critical to national competitiveness and economic growth.

Expert Backlash and Political Disquiet

Prominent figures, including Matt Clifford—who served as a key AI adviser to both Keir Starmer and Rishi Sunak—have publicly labeled the potential dissolution of the technology department as a 'big mistake.' This criticism highlights the growing divide between the incoming Prime Minister’s vision for a streamlined, output-focused government and the expectations of the tech sector, which views a dedicated department as essential for policy continuity and innovation.

Implications for Labour’s Future

These early decisions have created a climate of disquiet within the Labour Party. The unease is reportedly compounded by other strategic appointments, such as the potential naming of Shabana Mahmood as Chancellor. As the government moves to consolidate its power, these friction points suggest that Burnham’s administration will face significant internal and external pressure as it navigates the tension between fiscal austerity and the need to maintain a modern, technologically advanced state apparatus. The coming months will be decisive in determining whether this 'change in direction' delivers the intended stability or leads to long-term institutional instability.

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