Department for Business, Innovation, Science and Trade

Given the pace of technological change and uncertainty around future AI adoption, the Government’s approach is to plan for a range of AI compute demand and maintain the flexibility to scale capacity as requirements evolve, rather than set fixed estimates at one-, three- and five-year intervals.

The UK Compute Roadmap forecasts that the UK will need at least 6 GW of AI-capable data-centre capacity by 2030, around three times the data-centre capacity available in the UK when the Roadmap was published. The Roadmap notes that demand could significantly exceed this baseline if AI capabilities and adoption accelerate. It also identifies particularly rapid growth at the frontier of AI, where demand for compute is expected to increase by 10,000 times by the end of the decade, while inference is expected to account for the majority of overall AI compute demand.

The Department for Business, Innovation, Science and Trade continues to update and refine the range of demand estimates.

DSIT established the Robotics Advisory Group (RAG) to provide the government with independent, expert advice on robotics and autonomous systems policy. The appointments were made following an open "Expressions of Interest" process run by DSIT in late 2025, which invited experts from industry, academia, and trade bodies to apply by submitting a CV and a statement of their expertise directly to the department.

Lisa Johnson was appointed to the group on 15 January 2026 alongside other members. She was appointed following an open expression-of-interest and assessment process, including ministerial approval, in line with what was the Department for Science, Innovation & Technology’s standard governance procedures. Lisa Johnson has declared relevant interests in accordance with the Department’s standard arrangements for members of external advisory groups.

I have been frank in my discussions with Royal Mail’s leadership that quality of service has been unacceptable for too long and the pace of improvement must increase.

Individuals experiencing service failures are encouraged to raise these directly with the Royal Mail through its formal complaints process as there are escalation and compensation procedures in place, where applicable. Further information is available on Royal Mail’s website.

Where an eligible complaint remains unresolved, it may be escalated to the independent postal redress service (POSTRS) to investigate, with further information available online.

Whilst the government has been clear that Royal Mail’s service has been unacceptable for too long, there are no plans to establish an independent inquiry or legislative proposals to remove the company’s use of Royal Family wording, branding, and imagery. The government is focused on pushing Royal Mail to rapidly improve its service.

Ofcom, as the independent regulator, is responsible monitoring and enforcing Royal Mail’s service standards under the universal service obligation. Ofcom is currently investigating Royal Mail’s service performance for 2025-26 and will take regulatory action where necessary to hold the company to account for improving service standards.

Whilst the government has been clear that Royal Mail’s service has been unacceptable for too long, there are no plans to establish an independent inquiry or legislative proposals to remove the company’s use of Royal Family wording, branding, and imagery. The government is focused on pushing Royal Mail to rapidly improve its service.

Ofcom, as the independent regulator, is responsible monitoring and enforcing Royal Mail’s service standards under the universal service obligation. Ofcom is currently investigating Royal Mail’s service performance for 2025-26 and will take regulatory action where necessary to hold the company to account for improving service standards.

The Government does not plan to make a specific assessment of the long-term prospects of individual commercial models such as software as a service. The Department monitors developments in software and AI markets through existing horizon-scanning work, including the Government Office for Science's emerging technology programme.

The government’s Modernising Corporate Reporting programme aims to create a simpler, more proportionate corporate reporting framework that supports economic growth. We are consulting on a broad range of measures until 30 November. No final policy decisions have been made; we will consider responses and set out the final package and timelines in due course. Implementation will depend on legislative route for individual measures and the availability of Parliamentary time.

This package builds on earlier reforms: companies already benefit from this government’s earlier reforms which uplifted 132,000 companies from more onerous reporting requirements, saving companies £240 million per year.

The Department for Business, Innovation, Science and Trade is aware of the competitiveness challenges facing the cement sector and regularly engages with the sector to understand its needs. The Government encourages the cement manufacturing industry to engage with the Energy-Intensive Industries Compensation Scheme review when the opportunity arises.

Northern Irish businesses, researchers and institutions benefit from UK-wide opportunities through the UK-Germany Strategic Science and Technology Partnership. Recent initiatives include the €19.5 million joint quantum programme, supporting technologies that have significant potential for growth, jobs and security; the £2.4 million collaborative R&D call in clean energy, life sciences and engineering biology; and the Industrial Tech Corridor, which connects high-growth technology companies with major industrial partners and investors to help them scale, attract investment and win new business.

UK Export Finance (UKEF) does not hold information about the businesses in the supply chains of the exporters whom it supports directly. All transactions that UKEF supports must satisfy the department’s eligibility criteria, including the requirement that the contract demonstrates how it is conducive to supporting or developing exports from the UK.

Independent analysis by Oxford Economic (available online at: Analysing_UKEF_supported_Supply_Chains_-_Oxford_Economics_-_Feb_2026.pdf) suggested that there are 115,000 UK businesses in the supply chains of exporters backed by UKEF.

The Government engages regularly with a wide range of business representative organisations and trade unions, including the British Retail Consortium, on issues affecting the retail sector.

The Government is committed to tackling late payment, including for freelancers working in film and television. The Commercial Payments Bill, currently before Parliament, will introduce a statutory maximum payment term, strengthen rights to redress, and establish a clear, enforceable baseline for payment practices. These measures are expected to particularly benefit smaller businesses and self-employed workers, where late payment and unequal bargaining power are often most acute.

In September 2026, the Government appointed two Freelance Champions to ensure creative freelancers’ experiences are represented in policymaking.

Businesses must operate within an eligible Standard Industrial Classification (SIC) code and manufacture products within eligible Harmonised System (HS) code to be eligible for the British Industrial Competitiveness scheme.

Eligible businesses will receive support depending on their electricity consumption towards eligible manufacturing activity. This includes electricity used directly in the manufacturing process, as well as electricity used for supporting activities that are necessary for eligible manufacturing to take place. Supporting activities that are used solely for ineligible production will not be eligible.

The Government has published a comprehensive package of analysis on the Employment Rights Act, including analysis of the impacts on the retail sector: Employment Rights Act 2025: impact assessments - GOV.UK.

We will continue to publish analysis to support relevant consultations and final policy decisions to meet the Better Regulation Framework requirements.

The Government announced on 4 November that it will legislate to introduce a mandatory, risk-based human rights due diligence regime for the largest businesses, requiring them to identify, assess and address risks of human rights abuses and labour exploitation within their operations and supply chains. The Government will also introduce powers to be able to remove goods made with forced labour from the Great Britain market. These measures will help tackle the risk of sugar and other products produced using modern slavery being sold in the UK.

The Government and its arms-length bodies work closely with the UK research community to ensure research that advances scientific understanding of the risks and impacts associated with climate interventions, including Solar Radiation Modification, is conducted responsibly and complies with all domestic and international regulations.

The Advanced Research and Invention Agency (ARIA) has created an independent Oversight Committee, composed of experts in climate science, engineering, ethics and governance, to ensure rigorous and responsible governance in relation to research conducted under their ‘Exploring Climate Cooling’ programme. The Committee advises ARIA leadership by scrutinising outdoor experiment plans, providing recommendations, and may advise against funding certain experiments.

ARIA’s ‘Exploring Climate Cooling’ programme has been allocated £56.8 million of funding, of which £49.5 million is currently contracted. The programme has 22 research teams, many working in consortia, involving 52 unique organisations delivering research.

Full details of the organisations funded through the programme including how much funding each organisation has received, are published on ARIA's website.

The Advanced Research and Invention Agency (ARIA) requires all teams proposing outdoor experiments under the 'Exploring Climate Cooling’ programme to follow a five-phase community engagement and governance framework. Early phases focus on collaboratively developing experiment designs with local communities and undertaking an independent environmental impact assessment, or equivalent, alongside a legal assessment. Environmental impact assessment findings are published so that communities can provide feedback.

Full details of ARIA’s governance framework, including community engagement and impacts assessment already undertaken, are available on ARIA’s website.

The Advanced Research and Invention Agency (ARIA) requires all teams proposing outdoor experiments under the 'Exploring Climate Cooling’ programme to follow a five-phase community engagement and governance framework. Early phases focus on collaboratively developing experiment designs with local communities and undertaking an independent environmental impact assessment, or equivalent, alongside a legal assessment. Environmental impact assessment findings are published so that communities can provide feedback.

Full details of ARIA’s governance framework, including community engagement and impacts assessment already undertaken, are available on ARIA’s website.

My department is looking closely at the EU’s Made in Europe measures across a range of legislative proposals and is engaging with industry leaders and the EU institutions. We will continue to assess the potential economic impacts for the UK as the EU’s Made in Europe programme develops, including in sectors such as steel and energy.

The UK-EU Leaders’ summit, on 20th November, will provide an opportunity to raise wider issues of mutual interest, including Made in Europe.

We engaged closely with the EU before their Steel Regulation came into effect on 1 July and agreed an approach that reflects the UK and EU’s highly interconnected supply chains. We continue to work with the EU to strengthen UK-EU steel trade over the longer term, while also cooperating with the EU and other international partners to tackle global steel overcapacity.

Children’s safety is our top priority, and toys sold in the UK must meet our strict product safety requirements, including where AI is used. Businesses, including manufacturers must ensure the products they place on the market are safe and compliant and take appropriate action if safety risks are identified.

The Government recently conducted a Call for Evidence on the Toys (Safety) Regulations, seeking views on the implications of AI-enabled toys and whether the existing regulatory framework remains fit for purpose. The evidence gathered is now being considered, and the Government will set out its response in due course.

The Government is not yet persuaded of the case for the Smart Fund. Further evidence is needed to fully assess the benefits, costs and wider impacts on consumers and businesses as well as creators. The Government continues to engage with supporters of the Smart Fund and will consider any further evidence on its merits, taking account of the interests of all those affected.

Through the Growth Guarantee Scheme (GGS), government supports small UK firms to access loans they could otherwise only obtain on worse terms, or not at all. At Mansion House, the government expanded GGS to support £3.35 billion of lending a year by 2028/29 and extended maximum loan terms to ten years. The Start Up Loans programme also offers loans of up to £25,000 at a fixed 7.5% interest rate for businesses that have been trading for up to five years. Together, these measures help small firms access affordable finance for activities such as business development.

We published our consultation on employment status reform and protections for the self-employed on 14 October 2026. Proposals in the consultation would apply across the labour market and are not targeted at any specific sector or business model.

The consultation seeks views on measures to tackle pressing issues in the current framework, including bogus self-employment and the use of broad substitution clauses.

The government seeks evidence from a wide range of stakeholders, including employers, workers, the self-employed, trade unions and representative organisations – including those in the final mile parcel delivery sector – to understand how the proposals could operate in practice.

It is important that the parcel delivery market works for businesses and customers as well as workers. The government is committed to further exploring employment practices across the sector alongside options for improvement.

The FWA considers all relevant evidence of non-compliance affecting workers, including worker complaints and intelligence from third parties.

BIST Ministers regularly meet the FWA’s CEO and Chair to discuss strategic priorities. The FWA’s first full strategy (covering the period 2027–30) will be published next spring and will include information on risk factors in particular sectors of the economy.

The FWA considers all relevant evidence of non-compliance affecting workers, including worker complaints and intelligence from third parties.

BIST Ministers regularly meet the FWA’s CEO and Chair to discuss strategic priorities. The FWA’s first full strategy (covering the period 2027–30) will be published next spring and will include information on risk factors in particular sectors of the economy.

Businesses’ specific individual staffing levels and arrangement are commercially sensitive. The department does not hold this data.

The Government understands the challenges high energy costs pose to the steel industry and the constraining effect on investment. Many steel manufacturers already receive support through the British Industry Supercharger, providing eligible firms with a £65–87/MWh electricity discount. From April 2027, eligible manufacturers will also benefit from the British Industrial Competitiveness Scheme, reducing electricity costs by around 25%.

At the Budget, the Chancellor announced a new Cost Control Framework will be introduced at the 2027 Spending Review to reduce bills over the next decade. The Department for Business, Innovation, Science and Trade will support the development of this framework.

The Department for Business, Innovation, Science and Trade aims to respond to correspondence within 15 working days, although in some instances responses may take longer. The correspondence was accepted by the Department for Science, Innovation and Technology on 24 August. A response was issued to Olly Glover MP by Minister McDonald on 23 October (MP reference: 2608052; Departmental reference: MC2026_00025941).

The recognition of UK veterinary qualifications in the EU varies between member states and depends on the specific requirements of each competent authority. For example, UK veterinary qualifications are recognised in Ireland under a mutual recognition agreement between the Royal College of Veterinary Surgeons and the Veterinary Council of Ireland.

The Federation of Veterinarians Europe provides information on EU regulators and professional associations for veterinarians, where UK veterinary professionals can check which EU veterinary regulators recognise their qualifications.

The Government keeps the tax system under review and engages regularly with businesses and representative bodies across relevant sectors. BIST continues to engage with the apparel and hospitality sectors on their priorities, including issues affecting international competitiveness. The Government also engages with the tourism sector. Decisions on taxation, including any potential changes to the VAT Retail Export Scheme, are a matter for HM Treasury.

The Government recognises the important role of the Police Intellectual Property Crime Unit in tackling serious and organised intellectual property crime. We work closely with policing and other partners to understand operational needs and ensure that our approach to IP enforcement remains effective, sustainable and delivers value for money. The findings of the APPG for IP are under consideration in the development of the next Counter Infringement Strategy.

The Intellectual Property Office recognises the public harm that can arise from IP crime and infringement, including counterfeit goods that often pose risks to health and safety.

In developing its future strategy, the IPO is working across government, law enforcement and industry to better understand these harms and how they can be minimised.

In line with standard G20 process, we are unable to confirm plans for the UK’s upcoming G20 Presidency until following the US G20 Presidency's Miami Summit in December which will conclude the US’s Presidency. Until then, we are not in a position to comment on what structures will be in place in 2027.

The Replacing Animals in Science Strategy was supported by £75 million to accelerate the development, validation and uptake of alternative methods. Funding allocated to date includes £30 million for the Medical Research Council-funded Preclinical Translational Models Hub, up to £2 million through Innovate UK to support human-relevant approaches to medicines testing (£316,268 spent to date), and £15.8 million for novel human in vitro disease models (£3.7 million spent to date across five projects). The Government is also in the process of allocating funding to establish the UK Centre for the Validation of Alternative Methods.

The Government is supporting the replacement of dogs and non-human primates in regulatory toxicology through the Replacing Animals in Science strategy, which accelerates the development, validation and uptake of alternative methods. This includes investment in innovative human-relevant technologies, regulatory reforms by the Medicines and Healthcare products Regulatory Agency to support the use of non-animal data, and the establishment of the preclinical translational models hub and UK Centre for the Validation of Alternative Methods. The use of dogs and non-human primates remains subject to stringent controls and is permitted only where no validated alternative exists.

The Government remains committed to supporting the UK steel industry, including through providing up to £2.5 billion to the sector. This is alongside existing commitments, including up to £500 million for Tata Steel’s transformation at Port Talbot and the Government’s ongoing intervention in British Steel.

The precise allocation of future funding, including the balance between investment, operational support and working capital, will be subject to appropriate due diligence and ministerial decisions, reflecting the circumstances of individual interventions.

The Government remains committed to supporting the UK steel industry, including through providing up to £2.5 billion to the sector. This is alongside existing commitments, including up to £500 million for Tata Steel’s transformation at Port Talbot and the Government’s ongoing intervention in British Steel.

The precise allocation of future funding, including the balance between investment, operational support and working capital, will be subject to appropriate due diligence and ministerial decisions, reflecting the circumstances of individual interventions.

The Government recognises the vital contribution hospitality businesses make to jobs and local economies, including in Royal Sutton Coldfield.

At Budget 2026, the Chancellor announced that, from April 2027, Small Business Rates Relief thresholds for eligible retail, hospitality and leisure properties will rise to £18,000 for full relief and £21,000 for tapered relief. Bills for qualifying properties will also be frozen in real terms for two years, while pubs will receive an additional 20% relief, bringing their total relief to 35%. Together, these measures will see half of all such properties in England pay no business rates.

The Government continues to engage closely with the sector, including through the Hospitality Sector Council, to understand the challenges businesses face and support long-term growth. The Government’s recently announced High Streets Strategy also recognises the important role businesses such as pubs, restaurants and cafés play in creating vibrant high streets and thriving local economies.

Ensuring the UK’s financial services sector has access to the skills and talent it needs is an important pillar of the Government’s Financial Services Growth and Competitiveness Strategy.

This is why the Economic Secretary to the Treasury commissioned the Financial Services Skills Commission (FSSC) to examine how AI will affect business practices, the workforce and skills over the next five to ten years. Their Interim Report, A Workforce Transformed, was published in May and found that AI is likely to reshape rather than simply eliminate work, alongside growing demand for higher-level skills and pressure on entry-level pathways.

The Commission is now developing practical recommendations to support workforce skills and adaptation, with its final report due by early 2027.

Measures to tackle late payments are progressing through Parliament and on 14 October 2026, we launched a consultation on employment status reform and rights for the self-employed, seeking views on the remaining measures from the Plan to Make Work Pay: a new right to a written statement, extension of blacklisting protections and potential extension of health and safety protections.

The government is committed to doing more to support the genuinely self-employed. We recently announced the extension of parental pay to the self-employed and consulted on extending the Employment Rights Act 2025’s non-disclosure agreement measure to the self-employed.

The Sovereign AI Investment Committee is expected to be fully operational by the end of 2026.