Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what assessment they have made of the growing number of cyber security threats on European supermarkets operating in the UK.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government recognises the importance of cyber resilience across the retail sector. The National Cyber Security Centre (NCSC) provides expert guidance and support to organisations to help manage cyber risks and improve resilience, including through its sector-focused Trust Groups it runs across the wider economy. No assessment has been made by the Department for Business, Innovation, Science and Trade of the number of cyber security threats affecting European supermarkets operating in the UK. Government continues to work with industry and relevant partners to promote strong cyber security practices.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to ensure that the UK provides globally competitive electricity prices that can continue to attract AI data centre investment.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
The Department for Business, Innovation, Science and Trade (BIST) is developing proposals for electricity bill support for eligible data centres located in AI Growth Zones where they help to reduce overall electricity system costs.
We are putting AI at the centre of our plans for good growth in every postcode: bringing together innovation, business and industry. We are undertaking further policy development on how to support data centres, and the government remains committed to supporting the UK’s ambitions for AI growth and investment.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to offer AI data centre investors shorter wait times for electrical grid connections.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government is reforming the electricity grid connections process to reduce waiting times and accelerate connection offers for strategically important projects, including AI infrastructure and data centres. Working with Ofgem and the National Energy System Operator, we are moving to a more efficient connections regime that prioritises viable projects which are ready to progress. These reforms will remove stalled schemes from the queue and make better use of available network capacity while maintaining a fair and robust process for all users of the network. Through the AI Energy Council, the Government is exploring resilient, sustainable and scalable grid connections.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to ensure that the UK does not restrict economic growth as a result of the sale of emerging firms approaching a point of international market significance to foreign companies.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
The UK is open to foreign investment, which can help emerging British firms to grow, innovate and access international markets.
Through the Industrial Strategy, we are supporting innovative firms to start, scale, list and stay in the UK. This includes action to attract growth capital, strengthen public finance institutions, expand tax incentives and transform public procurement of innovation.
The British Business Bank is targeting over 60% of its venture and growth investment on scale-ups, investing at least £5bn through fund managers or directly into scale-up companies, and aims to support 10 new to market growth-stage fundraisings over five years.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what assessment they have made of the high-borrowing, circular financing model in the AI sector; and the implications this model may have for economic growth in the UK.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government's approach is to harness the opportunities of AI to drive economic growth and productivity, while ensuring its safe and responsible adoption. The Bank of England's Financial Policy Committee closely considers AI investment trends as part of its assessments, as set out in its July Financial Stability Report.
The UK AI sector is an increasingly important contributor to the economy: in 2024 it generated £23.9 billion in revenue, contributed £11.8 billion in Gross Value Added and supported around 86,000 AI-related jobs, with its GVA more than doubling from 2023.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to support the growth of UK semiconductor companies developing hardware-based cyber security technologies and the creation of high-skilled engineering jobs.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government is supporting the growth of the UK semiconductor sector, including the development of hardware-based cyber security technologies, through support across innovation, skills, procurement and investment. The £1.1 billion AI Hardware Plan includes an £18 million Hardware Security R&D Programme to strengthen the secure deployment and scaling of AI hardware. The Government is also supporting UK strengths in secure-by-design technologies, including the commercialisation of CHERI. Alongside this, the Government is investing £80 million in semiconductor and AI hardware skills, expanding training and career pathways to help build the pipeline of engineers and researchers needed for companies to develop these technologies.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to increase UK manufacturing capacity for the hardware required for artificial intelligence, robotics, and quantum technologies.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government is backing UK manufacturing capacity across these frontier technologies. Our £1.1 billion AI Hardware Plan will back British chip firms, support the scaling of hardware technologies in the UK, boost computing power and build the skills needed for long-term growth. We are backing advanced manufacturing with up to £4.3 billion over five years, including £38 million of grants to set up Robotics Adoption Hubs. For quantum technologies, we have committed up to £2 billion, including £140 million in infrastructure such as open-access pilot lines and cryogenics research and development.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to support businesses to adopt artificial intelligence in ways that increase productivity without reducing employment opportunities for lower-skilled workers.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government is supporting businesses to adopt AI in ways that boost productivity and create opportunities for workers.
In June, we launched the Pro-Worker AI Adoption Prize, recognising organisations that use AI to raise productivity, equip workers with new capabilities and create jobs. Through AI Skills Boost, we are providing free AI training and will help 10 million workers gain essential AI skills by 2030. The Early Careers Jobs Alliance will support continued access to high-quality opportunities for young people.
We are also strengthening evidence on AI’s labour market impacts through the AI Economics Institute, monitoring effects on jobs and skills.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to ensure that the expansion of artificial intelligence data centres in the UK is supported by sufficient energy and grid capacity.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government recognises that growth in AI and data centres is increasing electricity demand and that grid connection delays are a major barrier to new capacity in the UK.
To address this, the Government is reforming the connections process to better support strategically important demand, including data centres. Working with DESNZ, Ofgem and the National Energy System Operator, reforms will reduce delays, limit speculative applications and prioritise viable projects, helping unlock capacity faster while maintaining security of supply. Through the AI Energy Council, we are exploring a resilient, sustainable and scalable solution.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to support UK businesses to make greater use of artificial intelligence to develop new products and services.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government’s ambition is for the UK to be the fastest adopter of AI in the G7, helping to unlock growth and productivity across the economy, and support new opportunities for workers. We have committed over £200 million to help UK businesses adopt AI so they can realise this opportunity and are working with industry, including through the appointment of AI Champions in key Industrial Strategy sectors, Innovate UK’s BridgeAI programme which supports companies in areas of high growth potential which are currently low adopters of AI, and the AI Skills Boost initiative to upskill 10 million workers by 2030.