Energy Security

Anneliese Dodds Excerpts

Tuesday 19th May 2026 Commons Chamber

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

I welcome the measures in the King’s Speech on energy security, as on many other issues. The Opposition’s wrong-headed approach would leave us tethered to global markets that we cannot control. They would lock our country out of much-needed jobs and condemn Brits to higher bills. The energy independence and nuclear regulation Bills, in contrast, are further leaps towards the stronger energy security we need.

In my speech, I want to tackle an issue—it was actually touched on by the previous speaker, the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale)—which will increasingly drive the amount of energy our country needs to generate: the development and deployment of artificial intelligence. The Government did not bring forward in this King’s Speech our manifesto commitment to

“ensure the safe development and use of AI models by introducing binding regulation on the handful of companies developing the most powerful AI models”.

Indeed, AI was not mentioned in the speech. The Government have acted decisively on one symptom of the lack of regulation: the widespread production of sexualised images. That, however, followed 3 million such images being generated. Harm was already done, and I underline here the recent comments made by my hon. Friend the Member for Birmingham Yardley (Jess Phillips).

The Government have, rightly in my view, launched their sovereign AI fund, supporting innovative start-ups to scale up and generate value here in the UK, including access to compute. I know that many Ministers in the Department for Energy Security and Net Zero have been working hard to ensure that the capacity is there to deliver that additional compute. However, when it comes to the design and use of AI systems and models, we have only the AI Security Institute, a world-first, expert-led organisation, but one that lacks statutory powers and has to ask companies politely to engage. Even the Trump Administration now appear to recognise the need for the evaluation of frontier AI models before release. If we are genuinely serious about our country’s economic security, we must devote as much attention to AI and its astonishingly transformative, productive and disruptive potential as we are rightly devoting to energy security and the delivery of home-grown renewables. That will first require working with the EU on digital regulation, and I will push for that to be reflected in the welcome EU partnership Bill.

In the briefing pack for the King’s Speech, the Government maintain that nearly one third of UK AI start-up leaders are considering relocating overseas due to regulatory complexity and capital constraints. Given that regulatory complexity will often relate to cross-border issues, the prescription is not deregulation but regulatory co-ordination.

[Danny Kruger (East Wiltshire) (Reform)]

Will the right hon. Member give way?

[Anneliese Dodds]

In order to keep to time, I will not.

Capital constraints, and relatedly, constraints in compute, are real. We must recognise that while unilateral measures to support sovereign AI are important, their scope is necessarily limited. We must again work with reliable partners that share our values, not least within the EU.

Finally, we must be brave enough to open up the discussion on the fiscal framework for AI. We currently tax labour, the very thing that AI will—in some sectors and in specific ways—displace. We must examine now how we might use the public stake from our sovereign AI investments, or mechanisms such as a token tax or reform to capital gains, as the TUC has suggested, to build up the resources that may be needed. There is potential for significant disruption to the labour market, and we must be more ready for it.

Research out today from King’s College London suggests that 69% of workers and 64% of employers are worried about the economic impact of AI-related job losses. A majority of all groups surveyed predicted that AI’s benefits will mainly go to wealthy investors or companies, not workers or society. A majority of all groups also backed Government intervention. If we are to secure the fastest adoption of AI in the G7, as is the Government’s intention, we must deal with those issues too. Our young people will not forgive us if we fail to engage with this generational challenge.