EU Technological Sovereignty Package

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 20th July 2026 Lords Chamber

[Lord Clement-Jones]

To ask His Majesty’s Government what assessment they have made of the EU’s technological sovereignty package; and what plans they have to introduce equivalent instruments to protect and promote the UK’s artificial intelligence capabilities.

[The Parliamentary Under-Secretary of State, Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

We have undertaken an initial assessment and are working through a detailed assessment of the EU’s technological sovereignty package. This includes proposals on CADA and chips. Our current assessment is that the package presents both opportunities and risks to UK industry. We will continue to engage with industry and European partners as proposals evolve. For the UK, AI sovereignty means reducing overdependencies, strengthening resilience and backing British capability, including through the £1.1 billion AI hardware plan and our sovereign AI fund.

[Lord Clement-Jones (LD)]

My Lords, I declare an interest as a consultant to DLA Piper on AI policy and regulation. The EU’s Cloud and AI Development Act will set out a framework with sovereignty criteria for public sector procurement. The Government’s AI hardware plan, mentioned by the Minister, is welcome, but it contains no equivalent procurement-linked sovereignty framework. Given that the Government’s public procurement overwhelmingly relies on US hyperscalers, can the Minister commit to introducing a UK AI sovereignty assurance framework to ensure that public sector services and critical national infrastructure are nationally resilient?

[Baroness Lloyd of Effra (Lab)]

The Government have already set out their intention to use public sector buying power more strategically. The January 2025 blueprint for modern digital government noted that public sector organisations often contract locally and individually, limiting the impact of the £26 billion of annual technology spend, and committed to continue working on whole of public sector agreements. We are also developing the national cloud infrastructure programme, a strategic initiative to co-ordinate how the public sector buys cloud services. This programme will use the collective buying power of the whole of the public sector to secure better value for taxpayers, strengthen digital resilience and create new opportunities for British businesses.

Artificial Intelligence: Legislation

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Thursday 16th July 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The Government are acting to ensure that the UK can grasp the transformative potential of AI. That includes developing our sovereign capability and, as the noble Lord mentioned, relying on the advice of the AI Security Institute. Our approach is that we will legislate where we need to. We have done so through the Online Safety Act and we are doing so in other areas where we see the need. We believe that the best way of regulating is through context-specific regulation, which will take into account the specific issues that arise when AI is adopted by particular sectors.

[Lord Clement-Jones (LD)]

My Lords, I declare an interest as an adviser to DLA Piper on AI regulation and policy. The Government followed Australia in its approach to access to social media for under-16s. Will they do the same with AI, now that Australia will be adopting mandatory standards for AI, as nine in 10 of the British public clearly want?

[Baroness Lloyd of Effra (Lab)]

The UK’s approach is to develop our sovereign capabilities. We are investing in infrastructure and in AI growth zones. We are working to ensure that everyone in this country benefits from the potential of AI and are upskilling 10 million workers. In respect of the regulatory environment, AI can be adopted in many different areas: it can advance drug discovery, or it can support teachers in classrooms so that they have more face-to-face time with pupils. It is right to take a context-specific regulatory approach.

Employment: Artificial Intelligence

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 13th July 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

My noble friend is right about the potential of AI and that many people are uncertain about how it will develop in the future. The critical point that I think he and I agree on is that the best way of approaching this technological development is equipping people in all regions of the country—young people and those who need retraining—which is exactly the approach we are taking. With our AI skills boost, we will upskill 10 million people in work, and we have already reached 1.7 million. In that way, workers in this country will be able to make the most of this technological revolution.

[Lord Clement-Jones (LD)]

My Lords, the Milburn interim report, Young People and Work, found that a growing share of entry-level roles are now filtered by algorithmic screening before a human has even seen an application. Given that NEET numbers are shockingly high, what specific assessment have the Government made of the extent to which AI-driven recruitment tools are narrowing rather than widening life chances for these young people? Will the Minister commit to mandatory algorithmic impact assessments, as suggested by the TUC, for recruitment algorithms so that employers and platforms are required to test for bias before these tools are deployed at scale?

[Baroness Lloyd of Effra (Lab)]

The Government previously set out guidance on recruitment in the age of AI. The new future of work unit will look at what is developing in the labour market and at whether guidance such as that needs updating and in what respect. In the meantime, we are supporting young people, through our youth guarantee and through provision of early training opportunities for them, so that they can get into work now and continue to advance through their careers.

Wireless Telegraphy Act 2006 (Directions to OFCOM) (Revocation) Order 2026

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Tuesday 7th July 2026 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

My Lords, I beg to move this draft order. Wireless connectivity underpins a vast range of everyday services, from mobile phones and wifi to broadcasting and satellite communications. All these rely on access to radio spectrum. Spectrum is a finite and valuable resource, and it must be carefully managed to ensure that different services can operate without interference, that networks function reliably and that consumers and businesses benefit from competition and innovation.

In the UK, Ofcom, the independent communications regulator, manages spectrum by issuing licences, setting conditions and promoting efficient use. Government set the overall policy and strategic priorities for spectrum, including through the statement of strategic priorities that Ofcom must have regard to when discharging its functions. Maintaining a clear and effective framework for managing spectrum is therefore an important part of supporting investment in digital infrastructure and the wider economy. This instrument contributes to that by improving legal clarity without changing existing services, business models or regulatory requirements.

This draft order revokes a direction given to Ofcom in 2010. At the time, the Government used this direction to ensure that a specific set of reforms to support the rollout of mobile broadband was implemented clearly and at pace, alongside Ofcom’s existing statutory framework and in line with wider European measures to harmonise the use of key spectrum bands. These measures included allowing operators greater flexibility in how they could use key spectrum bands, enabling spectrum trading so that licences could be bought and sold, updating licence conditions to support long term investment, setting licence fees to reflect full market value and preparing for major spectrum auctions. Together, these changes helped operators transition from older mobile technologies towards newer ones, enabling the rollout of 3G and 4G services more quickly and efficiently and supporting the widespread availability of modern mobile services across the UK. The reforms also reflected wider European measures to harmonise the use of key mobile spectrum bands and support this transition.

All the obligations set out in the direction have now been fully implemented by Ofcom through a series of regulatory actions over the past decade. As a result, the direction no longer has any practical effect and is now redundant. This instrument therefore revokes that direction. Its removal will improve the clarity of the legal framework and remove the risk of confusion that could arise from retaining obsolete provisions. For example, when Ofcom looks to set annual licence fees for mobile spectrum, we want to minimise the risk of unnecessary legal challenge. The direction requires Ofcom to have particular regard to the outcome of the 800 megahertz and 2.6 gigahertz auction when setting certain licence fees. That auction took place in 2013; retaining the direction could create uncertainty about whether those historic auction outcomes should continue to carry special weight today.

This instrument does not introduce any new policy or change the way that spectrum is managed in the UK. Ofcom will continue to exercise its functions under its existing statutory framework, including duties set out in the Communications Act 2003 and powers under the Wireless Telegraphy Act 2006. These provide the framework for managing spectrum efficiently, promoting competition and investment and protecting consumers. This step will help ensure that the framework underpinning wireless connectivity remains clear and effective and supports continued investment. I beg to move.

[Lord Clement-Jones (LD)]

My Lords, I thank the Minister for introducing this order. I am somewhat intrigued as to why we are privileged to have two Ministers for these orders, which are both under the heading of electronic communications. No doubt the mystery will be resolved. Of course we do not oppose this instrument and I do not intend to detain the Committee long on what are, on the face of it, tidying-up measures. However, they raise a question or two worth putting to the Minister.

We have no quarrel with removing a direction that has plainly served its purpose. As the Minister said, Ofcom completed the work that the 2010 direction required years ago. However, can she say a little more about why now? The Explanatory Memorandum notes that retaining the 2010 direction risks creating

“legal challenge against Ofcom if they proceed with changes to licence charging arrangements”.

That is not a housekeeping observation but a forward-looking one; it suggests that Ofcom already has changes to spectrum licence fees in contemplation. Can the Minister tell the Committee what those changes are and on what timetable we might expect to see them?

Looking further ahead, can the Minister say something about how the Government see the framework for spectrum direction-making evolving to meet the demands of 5G and 6G rollout, non-terrestrial and satellite networks, and the rising spectrum needs of AI-related infrastructure? The 2010-era framework, tied as it was to 3G liberalisation, was never designed to anticipate those needs.

Artificial Intelligence: Global Governance

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Tuesday 23rd June 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

My noble friend is right to draw attention to the strengths of the UK in AI. Given the pace of change, the UK is determined to shape AI and not be shaped by it. These are issues that countries do not face alone, so we are working with international partners to seize the opportunities and address the challenges that AI presents, both bilaterally and multilaterally. The UK is well placed to lead, including through our AI Security Institute, working with allies to share expertise, build capability and strengthen our resilience together.

[Lord Clement-Jones (LD)]

My Lords, I declare an interest as a consultant to DLA Piper on AI policy and regulation. The UK signed the Council of Europe Framework Convention on Artificial Intelligence nearly two years ago. Can the Minister tell the House when the UK intends to ratify the convention, and what steps the Government intend to take to implement it, given their own statement that

“existing laws and measures will be enhanced”

once ratification occurs? Has the moment arrived for the UK to champion binding international obligations on AI, rather than continuing to place its faith in voluntary commitments that have clearly failed to hold either Governments or developers to account?

[Baroness Lloyd of Effra (Lab)]

The convention on AI is flexible and does not create new human rights obligations. Contracting states are given broad discretion when it comes to selecting the appropriate form of implementation, including sector-led regulation. That fits with our mission to highlight the benefits of AI for working people in a way that recognises that regulation largely is based on a sector-based approach.

Social Media: Substances Unfit for Human Consumption

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Wednesday 17th June 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The Government support clean competition in sport, and the Department for Culture, Media and Sport supports UK Anti-Doping and UK Sport in their efforts to protect clean sport and educate athletes on the risks of performance-enhancing drugs. The Online Safety Act covers situations where illegal products are marketed, and it is for Ofcom to enforce that area. As I mentioned, the children’s harms guidance makes it clear that sponsor or influencer-promoted content can be in scope where it actively encourages children to consume harmful substances.

[Lord Clement-Jones (LD)]

My Lords, the BBC investigation found that these illegal substances are readily available from online sellers based both in the UK and overseas, yet there is no systematic requirement for platforms to know who is placing these advertisements, particularly of the kind that the noble Lord, Lord Winston, referred to. Will the Government ensure that forthcoming work on online advertising standards includes a requirement for platforms to verify the identity of those placing advertisements for health and physique-enhancing products so that enforcement bodies can identify and pursue those responsible?

[Baroness Lloyd of Effra (Lab)]

The noble Lord is right that the Online Safety Act already covers illegal content and child safety duties. Those duties are in force. Ofcom is now turning its focus to the additional duties for categorised services, which will include protections against fraudulent advertising. We are expecting Ofcom’s consultation on the additional duties next month, which should cover a number of the issues that the noble Lord raises.

Social Media Ban for Under-16s

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Tuesday 16th June 2026 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, I, too, thank the Minister for taking the Statement today and for her alert. On these Benches we welcome the fact that the Government have finally responded to the overwhelming public demand to protect our children online, especially from the bereaved parents: like the noble Viscount, Lord Camrose, I pay tribute to them and to their campaign. We share the Government’s diagnosis. There is a genuine children’s mental health crisis and the platforms have for far too long been allowed to profit from it.

However, we fundamentally disagree with the Government’s prescription. After months of insisting that a drawn-out consultation was absolutely necessary before any action could be taken, what has been announced appears to be a panicked policy cobbled together ahead of a by-election and a Back-Bench rebellion. It appears that DSIT’s own expert panel flagged a “substantial” lack of evidence to justify key aspects of the plans. Can the Minister tell the House what steps the Government are taking to address those evidence gaps before the regulations are laid?

The Australian model the Government are adopting is based on definitions and lists. It bans specific platforms while trying to carve out exemptions for messaging or education. As my honourable friend Caroline Voaden pointed out in the Commons, the internet moves far too fast for lists. The moment one platform is banned, another unnamed platform launches. This is, at its heart, a “dangerous dogs” approach to regulation, focusing on arbitrary categories rather than the actual risk of harm.

The Secretary of State made a startling admission at the Dispatch Box. She openly acknowledged that children will find workarounds, using VPNs or fake IDs, stating that

“kids will get around this … That is what kids do”.—[Official Report, Commons, 15/6/26; col. 606.]

If the Government themselves acknowledge that children will bypass this ban, how exactly does a policy built purely on exclusion protect them? Does it not simply give parents a false sense of security and, worst of all, let the tech giants completely off the hook?

As the noble Baroness, Lady Kidron, has tirelessly argued in this House, with our support, we must regulate the product, not just the child. This is about safety by design. Instead of an outright ban, the Liberal Democrats have consistently called for a targeted and coherent harms-based framework: films-style age ratings for platforms. Under our approach, platforms that deploy addictive algorithmic feeds or host inappropriate content would be legally restricted to users over 16 and the most extreme sites rated 18-plus. Will the Minister explain why the Government have rejected this approach and why the burden of proof is not being shifted to the tech companies themselves, forcing them to remove toxic, addictive features such as infinite scrolling, autoplay and manipulative algorithms.

As the Molly Rose Foundation has rightly warned, relying on blanket bans risks migrating bad actors, groomers and violent groups from banned platforms to permitted ones or into the dark web. We will end up playing a desperate, endless game of whack-a-mole with children’s safety. What assessment have the Government made of that migration risk?

There is also a dangerous cliff edge in what is proposed. DSIT’s own expert panel warned in writing that a sudden transition at 16 could lead to intensive uptake and increased risks. We risk keeping children in a sterile digital environment until their 16th birthday, only to suddenly expose them to harmful, unfiltered content the moment they come of age, without having helped them to safely develop the digital and emotional resilience they will need throughout their lives. What specific measures does the Minister propose to address that cliff edge?

The Statement is also glaringly silent on the commercial exploitation at the heart of this crisis. Will the Minister confirm when the Government intend to raise the digital age of consent from 13 to 16?

Finally, any ban or restriction is entirely meaningless if the regulator lacks statutory teeth. We have a fundamental enforcement deficit. The Australian experiment already demonstrates the immense difficulties with enforcement and circumvention: six in 10 children there are still on social media six months after the ban came into force. Will the Minister commit today to a formal review of Ofcom’s enforcement powers within six months to ensure that the regulator has the necessary tools—business disruption measures, injunctive relief— to compel tech giants to change their business models?

We will rigorously scrutinise the forthcoming regulations and continue to press the Government to move away from blunt exclusion towards a robust harms-based framework that holds these tech giants properly to account. This must be indeed big tech’s seat-belt moment, but a seat belt protects a passenger within a vehicle; it does not simply ban them from the road. We need a smart approach that allows young people to benefit from the best of the digital world—and indeed, as the noble Viscount, Lord Camrose, says, prepare to vote at 16—and to learn, connect and grow while properly dismantling the addictive profit-driven architecture that is doing them such harm.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

I thank the noble Lord, Lord Clement-Jones, and the noble Viscount, Lord Camrose, for their contributions. They have been at the forefront of calls to engage on how to make our online world safe for children growing up for many years, and I join them in paying tribute to the bereaved families who have also been tirelessly campaigning on this issue.

The Government set out earlier this year our intention to consult parents, children and young people on what more needs to be done. We also committed to act swiftly following that consultation. We repeatedly said, “The question is how we act, not if we act”. The two noble Lords have expressed concern about the Government’s consultative approach. Perhaps they have questioned whether it was needed. We feel that the approach has been both swift and responsible. A short, focused consultation was necessary so that we could hear that input. We received over 116,000 responses from parents, civil society, industry and, crucially, children and young people themselves. The magnitude of that engagement demonstrates the range of strong views. We felt that it was critical to listen to those children and families and to have a national conversation.

This week we have set out plans to ban social media platforms from allowing those under 16 to access them. On the point made by the noble Lord, Lord Clement-Jones, we have also announced our intention to restrict under-16s from accessing some harmful functionality, such as livestreaming and features that enable the discoverability of children and facilitate unrestricted communications with strangers. It is by doing those two things together that we build a safer future. Those features will also be off by default for 16 and 17 year- olds, and we have made it clear that we will age-gate features on AI chatbots that enable sexually explicit interactions to over-18s. We believe that will deliver graduated, age-appropriate experiences and address concerns about the issue of cliff edges, as highlighted by the noble Lord, Lord Clement-Jones.

On the question of speed and when we are going to act, we have committed to moving as quickly as possible to lay these regulations on social media by the end of the year, to vote as quickly as we can on those, and to implement them by spring 2027. By taking the powers in the Children’s Wellbeing and Schools Act, we can move at this speed.

Noble Lords also asked about the digital age of consent. We have said we will come back to some other questions that were raised in the consultation—for example, the digital age of consent and the risk of circumvention through virtual private networks—in July, when we will come back on further details.

On the question of different ages, it is indeed the case that there are many different ages in our legislation for access to alcohol and access to gambling. That is a feature of our legislation. We feel these are the right ages to restrict social media companies from providing services to under 16 year-olds—and, as I mentioned, setting the default features for 16 and 17 year-olds.

In terms of the scope, this is indeed based on the Australian criteria. We will set out, with the regulations later this year, exactly the criteria that we choose in our regulations. In respect of age verification, currently the Ofcom guidance recommends the following age-assurance methods for over-18s: passports, driving licences, credit cards, facial scanning, mobile network operator checks, open banking checks, or email-based age estimation. Some of these will not work for the 16-plus category. That is why the Secretary of State has asked Ofcom to look at options for highly effective age assurance for 16 year-olds. We have asked that it publishes its findings in October, so that Members of this House can consider them before voting on the regulations. So, to answer the question of the noble Viscount, Lord Camrose, on age verification, there are a variety of models.

On the question of evidence gaps, we are aware, obviously, that social media moves quickly and that new services may be provided. We think that this can provide some opportunities. The current legislation is set in a certain way. Once the legislation and the regulations are changed, this will provide the opportunity for providers to provide services that they do not today—for example, to access the news or other services. This may provide our children and young people with better opportunities than they have today.

We also recognise that some children may attempt to circumvent age restrictions. What we are setting out in this set of proposals is a new societal norm. We are resetting what is expected. This will benefit children today and, importantly, it will benefit children growing up today who have not yet reached the age of 13, 16 or 18—the generation of tomorrow.

On the question of enforcement powers, obviously this is an incredibly important point. We need the new regime to be effectively enforced. That is why the Secretary of State wrote to the chair and CEO of Ofcom to reinforce this and to ask that they ensure that there is robust and effective enforcement of the ban, and to submit to Parliament and make publicly available an update on their wider enforcement strategy, noting the legitimate interest of Members in the other place and of noble Peers here. We will ensure that Ofcom has the resources to properly enforce these new measures and to take strong enforcement action and protect all users more widely.

We recognise the importance of parliamentary scrutiny in this process, and I welcome the offers to collaborate and engage on the proposals we bring forward with the appropriate scrutiny—and, it seems, some extra scrutiny and critique from the noble Lord, Lord Clement-Jones. We all want to protect children online and ensure that their online life is as fulfilling as their offline life. It is a responsibility we take very seriously. We do not want children to have to navigate unsafe digital spaces. We believe that our statement of intent here will do that and will deliver to make sure that we give children the childhood they deserve.

Artificial Intelligence: National Security Implications

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Tuesday 16th June 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The noble Lord raises very important points, including the fact that Mythos and Fable are unavailable worldwide, including in the US. He rightly stresses the importance of the AI Security Institute—its establishment, its ongoing support and funding by this Government, and the fact that it was able to test both Mythos 5 and Fable 5. We are in touch with the US Government and are monitoring the situation closely.

[Lord Clement-Jones (LD)]

My Lords, the Minister has mentioned the AI Security Institute. It identified ways to circumvent the safety guardrails of Fable 5 and Mythos before their public launch, including vulnerabilities that could allow the extraction of instructions for producing dangerous substances, yet the model was released by Anthropic regardless. Will the Minister now accept that voluntary co-operation with safety institutes is wholly insufficient at this level of capability and bring forward legislation giving the AI Security Institute the statutory power, where necessary, to delay or prevent the launch of dangerous frontier AI models in the UK?

[Baroness Lloyd of Effra (Lab)]

The AI Security Institute did test Mythos and Fable before they were launched. In light of the risks that they potentially posed—Mythos in particular—we also gave advice to our companies. We worked carefully with the National Cyber Security Centre to provide advice to companies and regulators on what needed to be done because, generally speaking, what we find with these potential new capabilities is that many of the basic mitigants that you need to take will inhibit the effectiveness of these new models. In respect of regulation, as I mentioned a moment ago, we continue to support the effectiveness of sector-based regulators regulating AI risks as they approach their sectors. They are best placed to know what those risks are and what the mitigants will be.

Digital Safety: Children

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Tuesday 9th June 2026 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

I agree with the noble Lord that there is unanimity on the importance of tackling child sexual abuse online and taking measures to further restrict that and make it harder. As my noble friend Lord Hanson made clear during the passage of the Act, device-level nudity detection can play an important role in preventing children taking, sharing or viewing nude imagery.

This measure really looks at how to prevent those images getting online. That is a very important part of the strategy; it stops harm before it happens, in addition to the law enforcement activity that must happen in parallel. It applies to both old and new smartphones and tablets, and we expect tech companies to set up controls so that, if a parent hands down a phone, for example, all they have to do is reset it to enact this operating-level facility.

In respect of making sure that legislation is ready, as the Minister for Online Safety said in the other place yesterday, he is working carefully and closely in parallel with the Home Office to draw up legislation should that be needed, should the protections not be put in place at scale as expected.

[Lord Clement-Jones (LD)]

My Lords, I congratulate my honourable friend Munira Wilson on trying to extract some clarity from the Government after the Prime Minister’s speech yesterday before almost any of us arrived at London Tech Week. Sadly, it did not contain all of what was in the weekend media briefings. On these Benches, the Liberal Democrats have long called for a film-style harms-based age-rating system, with addictiveness as a central criterion, rather than a blanket ban on user-to-user services. Minister Narayan in the Commons subsequently indicated yesterday that addictiveness is

“very much on our minds”.—[Official Report, Commons, 8/6/26; col. 31.]

Can the Minister confirm that the forthcoming consultation response will explicitly adopt addictive design, including infinite scroll, autoplay and recommender algorithms as a harm category, triggering age-based platform restrictions, rather than relying solely on content type or constituting a blanket ban? Can she confirm that this will be enshrined in legislation, rather than a voluntary expectation of tech platforms?

[Baroness Lloyd of Effra (Lab)]

The consultation to which the noble Lord refers includes looking at features and functionalities; it looks at addictive algorithms, screen time and the impact on children’s health. The consultation has closed. There were many responses, and we are taking time to make sure that we have looked carefully at them—and, in addition to those responses, at the conversations that have gone on. I cannot pre-empt the Government’s response, which will come soon, but all the matters I have just mentioned were within the consultation for discussion.

Sovereign AI Fund

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 1st June 2026 Lords Chamber

[Lord Clement-Jones]

To ask His Majesty’s Government what strategy they have to ensure that the Sovereign AI Fund will support sovereign AI infrastructure and reduce public sector dependence on foreign hyperscale cloud providers.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

The sovereign AI fund will support early-stage British start-ups at strategically important parts of the AI value chain, including AI infrastructure and compute. It is not designed to replace foreign cloud providers or achieve total UK self-sufficiency. Instead, the fund seeks to reduce our strategic dependence and ensure that the UK has a stake in a world economy transformed by AI.

[Lord Clement-Jones (LD)]

My Lords, the Secretary of State has said that Britain

“must be an AI maker, not an AI taker”,—[Official Report, Commons, 18/3/26; col. 55WS.]

and the sovereign AI unit’s own chair has promised British start-ups a guaranteed route to government contracts. But even the AI Minister, Mr Narayan, has admitted that procurement is too hard for British start-ups across government. So when will public procurement, in particular the G-Cloud framework, be reformed to match that promise? Will “sovereign AI” not remain just a slogan without that?

Artificial Intelligence: Impact on Employment

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 13th April 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

Reducing the AI skills gap and understanding the impact of the labour market’s change due to AI is indeed something that we are looking at closely. DSIT regularly reviews the AI labour market and skills gap, and we are working with Skills England to fully understand the needs. I will need to update the noble Lord on the role of the regional centres he mentions after this session.

[Lord Clement-Jones (LD)]

My Lords, the Government have cited their own Ipsos research that 84% of people at work have not undertaken any AI training in the past 12 months. The Government’s AI skills boost programme is welcome, but it is not enough. Will the Minister commit to personal learning accounts, giving individuals genuine choice over their upskilling, and to prioritising putting the creativity and critical reasoning at the heart of the national curriculum that AI cannot replicate?

[Baroness Lloyd of Effra (Lab)]

The noble Lord is right that AI poses challenges and opportunities to those in the labour market. The AI skills boost programme that the Government have announced is extremely ambitious in its reach. It will see a major expansion to upskill 10 million workers, which is a huge endeavour and will see the UK fit to grab the opportunities of the AI technology that is coming today.

EU Digital Services Act and Regulation

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Wednesday 11th March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

We have the Online Safety Act, which is enforced by Ofcom and other regulators and, as the noble Lord will know, we announced a consultation just recently on areas that we may seek to expand or take further measures on to enhance children’s well-being.

[Lord Clement-Jones (LD)]

My Lords, does the Minister accept that, as part of this dialogue, close co-operation on robust competition enforcement is essential to resist growing US pressure to weaken digital rules? As the EU actively enforces its Digital Markets Act, will the Government commit to aligning in practice with strong EU enforcement standards rather than allowing US corporate lobbying to dilute the UK’s digital markets competition regime?

[Baroness Lloyd of Effra (Lab)]

The UK has taken decisive action to strengthen competition and fairness in digital markets. In January 2025, Parliament equipped the CMA with new powers to boost competition and innovation in digital markets. In May, the Government issued a clear steer to the CMA to prioritise this work and align action with international jurisdictions, including the EU. The UK and CMA engage regularly with EU counterparts as both regimes begin operation to help maintain close alignment on emerging issues.

UK Space Economy

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Wednesday 11th March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

I share the enthusiasm of my noble friend, the committee and the report for the space economy. We responded in detail to the recommendations earlier this year. We are setting out our strategic priorities, which, as the committee and my noble friend highlighted, encompassed many aspects of our lives, including defence, economic growth and support for our farming communities. We will continue to focus our spend on the priorities of economic growth and national security outcomes.

[Lord Clement-Jones (LD)]

My Lords, on the Government’s space plan, will they formally adopt a policy of space debris neutrality, requiring all satellites launched from the UK to have what is called a “designed to demise” commitment to prevent further orbital congestion? With an active debris removal procurement worth some £75 million, how are the Government ensuring that UK-based SMEs are not being edged out by larger international companies for these critical domestic contracts?

[Baroness Lloyd of Effra (Lab)]

The noble Lord raises the important issue of space debris, which creates risks to our critical national infrastructure. We are strengthening UK space surveillance and investing in debris mitigation technologies. We are seen as a leader in space sustainability, including with the international community and His Majesty the King. We are supporting important UK companies such as Astroscale to understand the risks and costs of active debris removal. In fact, there are further announcements today on this important issue of space debris removal.

TikTok: Bereaved British Parents

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Tuesday 27th January 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The Government are aware of calls to make the data preservation process faster. These are new powers and we are actively monitoring the effectiveness of the current process, working closely with Ofcom to do this. We are carefully considering any means that could allow relevant data to be preserved in a timely manner to ensure investigations are well informed and families get the answers they need.

[Lord Clement-Jones (LD)]

My Lords, the litigation alleges that TikTok’s algorithm deliberately promoted harmful content to children. That is exactly what we originally thought the Online Safety Act was going to help protect our children from, but that appears to be wrong. Will the Government, given their statement of strategic priorities, insert a statutory definition of safety by design and require Ofcom specifically to address addictive algorithms and compulsive design features?

[Baroness Lloyd of Effra (Lab)]

The noble Lord will be aware of the Statement that the Technology Secretary made last week to initiate a short consultation looking at further measures that could be taken, which responds to some of the questions that underlie his question about the nature of social media use and actions that could be taken in response to parental and other requests to deal with it—for example, looking at breaks to stop excessive doomscrolling, or further enforcement of the law. That consultation will take place swiftly before the summer.

Superintelligent AI

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 26th January 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

My noble friend is right to mention the research of the AI Security Institute, which is advice the Government listen to and take very seriously. AI is a general-purpose technology with a wide range of applications, which is why the UK believes that the vast majority of AI should be regulated at the point of use. My noble friend is also right that collaboration with other countries is critical, and the UK’s approach is to engage with many other countries, and through the AI Security Institute with developers so that it has good insight into what is happening in development today.

[Lord Clement-Jones (LD)]

My Lords—

--- Later in debate ---

[Lord Clement-Jones (LD)]

My Lords, I declare an interest as a consultant to DLA Piper on AI regulation and policy. In their manifesto, the Government promised

“binding regulation on … companies developing the most powerful AI models”,

yet, 18 months later, even in light of the harmful activities of stand-alone AI bots, we have seen neither the promised consultation nor any draft legislation. How can the Government credibly claim to be taking superintelligence seriously when they cannot get round even to publishing a consultation, let alone legislating?

[Baroness Lloyd of Effra (Lab)]

As I mentioned earlier, most AI systems are regulated by our existing expert regulators, and they are already acting. The ICO has released guidance on AI and data protection and the MHRA is taking action to allow a sandbox for AI as a medical device product. We are working with regulators to boost their capabilities as part of the AI opportunities action plan, and where we need to take action—for example, as we have under the Online Safety Act—we will do so. We do not speculate on legislation ahead of future parliamentary Sessions, but we will keep noble Lords updated should and when we bring forward a consultation ahead of any potential legislation.

Social Media: Non-consensual Sexual Deepfakes

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Wednesday 14th January 2026 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, we on the Liberal Democrat Benches welcome the Secretary of State’s Statement, as well as her commitment to bring the new offence of creating or requesting non-consensual intimate images into force and to make it a priority offence. However, why has it taken this specific crisis with Grok and X to spur such urgency? The Government have had the power for months to commence this offence, so why have they waited until women and children were victimised on an industrial scale?

My Commons colleagues have called for the National Crime Agency to launch an urgent criminal investigation into X for facilitating the creation and distribution of this vile and abusive deepfake imagery. The Secretary of State is right to call X’s decision to put the creation of these images behind a paywall insulting; indeed, it is the monetisation of abuse. We welcome Ofcom’s formal investigation into sexualised imagery generated by Grok and shared on X. However, will the Minister confirm that individuals creating and sharing this content will also face criminal investigation by the police? Does the Minister not find it strange that the Prime Minister needs to be reassured that X, which is used by many parliamentarians and government departments, will comply with UK law?

While we welcome the move to criminalise nudification apps in the Crime and Policing Bill, we are still waiting for the substantive AI Bill promised in the manifesto. The Grok incident proves that voluntary agreements are not enough. I had to take a slightly deep breath when I listened to what the noble Viscount, Lord Camrose, had to say. Who knew that the Conservative Party was in favour of AI regulation? Will the Government commit to a comprehensive, risk-based regulatory framework, with mandatory safety testing, for high-risk models before they are released to the public, of the kind that we have been calling for on these Benches for some time? We need risk-proportionate, mandatory standards, not voluntary commitments that can be abandoned overnight.

Will the Government mandate the adoption of hashtagging technology that would make the removal of non-consensual images possible, as proposed by the noble Baroness, Lady Owen of Alderley Edge, in Committee on the Crime and Policing Bill—I am pleased to see that the noble Lord, Lord Hanson, is in his place—and as advocated by StopNCII.org?

The Secretary of State mentioned her commitment to the safety of children, yet she has previously resisted our calls to raise the digital age of consent to 16, in line with European standards. If the Government truly want to stop companies profiteering from children’s attention and data, why will they not adopt this evidence-based intervention?

To be absolutely clear, the creation and distribution of non-consensual intimate images has nothing whatever to do with free speech. These are serious criminal offences. There is no free speech right to sexually abuse women and children, whether offline or online. Any attempt to frame this as an issue of freedom of expression is a cynical distortion designed to shield platforms from their legal responsibilities.

Does the Minister have full confidence that Ofcom has the resources and resolve to take on these global tech giants, especially now that it is beginning to ramp up the use of its investigation and enforcement powers? Will the Government ensure that Ofcom uses the full range of enforcement powers available to it? If X continues to refuse compliance, will Ofcom deploy the business disruption measures under Part 7, Chapter 6 of the Online Safety Act? Will it seek service restriction orders under Sections 144 and 145 to require payment service providers and advertisers to withdraw their services from the non-compliant platform? The public expect swift and decisive action, not a drawn-out investigation while the abuse continues. Ofcom must use every tool Parliament has given it.

Finally, if the Government believe that X is a platform facilitating illegal content at scale, why do they continue to prioritise it for official communications? Is it not time for the Government to lead by example and reduce their dependence on a platform that seems ideologically opposed to the values of decency and even perhaps the UK rule of law, especially now that we know that the Government have withdrawn their claim that 10.8 million families use X as their main news source?

AI technologies are developing at an exponential rate. Clarity on regulation is needed urgently by developers, adopters and, most importantly, the women and children who deserve protection. The tech sector can be a force for enormous good, but only when it operates within comprehensive, risk-proportionate regulatory frameworks that put safety first. We on these Benches will support robust action to ensure that that happens.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

I thank both noble Lords for their contributions to the debate. We all agree that the circulation of these vile, non-consensual deepfakes has been shocking. Sexually manipulating images of women and children is despicable and abhorrent. The law is clear: sharing or threatening to share a deepfake intimate image without consent, including images of people in their underwear, is a criminal offence. To the noble Lord’s point, individuals who share non-consensual sexual deepfakes should expect to face the full extent of the law. In addition, under the Online Safety Act, services have duties to prevent and swiftly remove the content. If someone has had non-consensual intimate images of themselves created or shared, they should report it to the police, as these are serious criminal offences.

I turn to some of the points that have been raised so far. The Government have been very clear on their approach in terms of both the AI action plan and the legislation that we have brought forward. We have introduced a range of new AI-related measures in this Session to tackle illegal activity; we have introduced a new criminal offence to make it illegal to create or alter an AI model to create CSAM; we are banning nudification apps; and we are introducing a new legal defence to make it possible for selected experts to safely and securely test models for CSAM and non-consensual intimate images and extreme pornography vulnerabilities.

AI is a general-purpose technology with a wide range of applications, which is why we think that the vast majority of AI systems should be regulated at the point of use. In response to the AI action plan, the Government are committed to working with regulators to boost their capabilities. We will legislate where needed and where we see evidence of the gaps. Our track record so far has shown that that is what we do, but we will not speculate, as ever, on legislation ahead of future parliamentary Sessions.

I come to the question of Ofcom enforcement action. On Ofcom’s investigation process, the Secretary of State was clear that she expects an update from Ofcom on next steps as soon as possible and expects Ofcom to use the full legal powers that Parliament has given it to investigate and take the action that is needed. If companies are found to have broken the law, Parliament has given Ofcom significant enforcement measures. These include the power to issue fines of up to 10% of a company’s qualifying worldwide revenue and, in the most serious cases, Ofcom can apply for a court order to impose serious business disruption measures. These are all tools at Ofcom’s disposal as it takes forward its investigations. On the question of whether Ofcom has the resources to investigate online safety, as I think I have mentioned in the House before, Ofcom has been given additional resources year on year to undertake its duties in respect of enforcing the Online Safety Act: that is, I think, £92 million, which is an uplift on previous years.

I come to the question of the Government’s participation in news channels and on X. We will keep our participation under review. We do not believe that withdrawing would solve the problems that we have seen. People get their news from sources such as X and it is important that they hear from a Government committed to protecting women and girls. It is important that they hear what we are doing and hear when we call out vile actions such as these. We think it is extremely important to continue to take action and continue to back Ofcom in the actions that it is taking in respect of this investigation, and in fact all of its investigations under the Online Safety Act.

The noble Lord asked whether it should be mandatory for AI developers to test whether their models can produce illegal material. Enabling AI developers to test for vulnerabilities in their models is essential for improving safeguards and ensuring that they are robust and future-proofed. At present, such testing is voluntary, but we have been clear that no option is off the table when it comes to protecting UK users, and we will act where evidence suggests that further action can be effective or necessary. We are keeping many of the areas that have been raised today under review and we are seeking further evidence. We are looking at what is happening in other jurisdictions and at what is happening here and we will continue to take action.

I also reflect on the point that the noble Lord made that the issues around enforcing illegal activity are nothing to do with free speech. These are entirely separate issues and it is incredibly important to note that this is not about restricting free speech, but about upholding the law and ensuring that the standards that we expect offline are held online. Many tech companies are acting responsibly and making strong endeavours to comply with the Online Safety Act, and we welcome their engagement on that. We need to make sure that our legislation and our enforcement is kept up to date with the great strides in technology that are happening. This means that, in some cases, we will be looking at the real-life impact and taking measures where new issues arise. That is the track record that we have shown and that is what we will continue to do.

Technology Adoption Review

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 15th December 2025 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The noble Lord is absolutely right that we need to take action on a number of fronts, including AI literacy and digital skills more generally. The Government are taking action on digital skills in a number of areas, including through what was the CyberFirst programme and is now the TechFirst programme, looking at both young people and students.

On AI skills, particularly for those in the workforce, the Prime Minister announced a plan to train 7.5 million workers with essential AI skills by 2030 through our industry partnership with key players. It is great to have those players collaborating with us on that.

[Lord Clement-Jones (LD)]

My Lords, the Technology Adoption Review is clear that the UK’s ability to turn research excellence into productivity gains depends on skills and access to world-class talent across our innovation system. In light of Sir Paul Nurse’s recent warnings that high visa fees and restrictive rules are actively deterring early career researchers and damaging the UK’s science base, will the Government commit to aligning research visa policy with their technology adoption ambitions, say, by emulating the Canada Global Impact+ Research Talent Initiative?

[Baroness Lloyd of Effra (Lab)]

The noble Lord is right that attracting high-calibre talent to this country is incredibly important. We have a number of ongoing initiatives to do that, including the Global Talent Taskforce, as well as through academia, as my noble friend the Minister with responsibility for science and technology talked about. The digital skills jobs plan will also set out how we can support that aim and get the balance right between growing homegrown talent and attracting those we need to from abroad, so that we have the best chances of growing our science base and the spin-outs.

Data Adequacy Status: EU Data Protection Standards

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Thursday 4th December 2025 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

I thank the noble Lord. He brings a great deal of experience over the years in many areas of data protection legislation, anti-money laundering and the security side. Since the UK and EU leaders’ summit on 19 May, we have been working with the EU to increase the safety and security of UK and EU citizens, to respond to shared threats, and to support police investigations, including through enhanced data exchange. We continue to work and meet closely with the EU on these matters.

[Lord Clement-Jones (LD)]

My Lords, the Government are trying to hit a moving target, as far as I can see. The EU is adopting a new digital omnibus, which will change EU GDPR. How confident are the Government about being able to get a decision from the EU in time?

[Baroness Lloyd of Effra (Lab)]

To take that question in two parts, we are confident about the EU’s scrutiny of our legislation. The Commission has started its review and published the report that I mentioned in July. The European Data Protection Board published a non-legally binding opinion on its draft decision on 20 October. We are confident that a member state vote will take place ahead of the 27 December deadline. The EU’s proposals to change its data protection framework have only recently been published. We will have a look at the details of those changes as and when they become clear and are confirmed.

Children: Age Verification and Virtual Private Networks

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Thursday 4th December 2025 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, the Minister says that the Government are standing right behind Ofcom. Many of us very strongly support Ofcom’s actions in fining those such as the AVS Group for not observing proper age checks on their sites. But, as the noble Lord, Lord Carlile, indicates, there is no point in having fines unless we have proper enforcement. What resource are the Government satisfied Ofcom has to pursue enforcement?

[Baroness Lloyd of Effra (Lab)]

We have ensured that Ofcom is resourced to implement its online safety duties and have increased the amount available to it year on year; its budget is, I think, £92 million to support all its Online Safety Act responsibilities. We believe that it has the resources it needs to effectively implement and supervise the Online Safety Act.

Artificial Intelligence Legislation

Debate between Baroness Lloyd of Effra and Lord Clement-Jones

Monday 17th November 2025 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

I remind the House that AI is already regulated in the UK and we regulate on a context-specific approach. Our regulators can take account of the developments in AI, which are indeed rapid, and ensure that they are tailored. In addition, as noble Lords know, we have got various regulators undertaking regulatory sandboxes and the new proposal for the AI growth lab, which will look across all sectors and allow regulators to collaborate on this quite rapidly changing technological development.

[Lord Clement-Jones (LD)]

My Lords, I declare in interest as chair of the Authors’ Licensing and Collecting Society and as a consultant to DLA Piper on AI policy. The first meeting of the rather grandly named Lords’ AI and copyright parliamentary engagement group takes place tomorrow. Would it not be extraordinary if the Government did not bring forward a Bill in the face of that engagement group’s conclusions and those of the industry working groups? Would any of those discussions not be rendered meaningless without a Bill next year? If a Bill does not come forward, would that not demonstrate the influence of big tech and the major technology companies on the Government?

[Baroness Lloyd of Effra (Lab)]

The issues to which the noble Lord refers have, of course, been extensively debated here. One outcome of conversations during the passing of the data Act was a commitment to have these discussions. I also think it would be premature to decide the nature or timing of legislation until those discussions are completed. Like the noble Lord, I highlight the importance of the parliamentary consultations, the first of which with Peers is indeed happening tomorrow, with the two Secretaries of State.