Product Security Regime: Implementation Plan

Paul Scully Excerpts

Tuesday 2nd May 2023 Written Statements

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

I am repeating the following written ministerial statement made today in the other place by my noble Friend, the Minister for AI and Intellectual Property, Viscount Camrose:

The Government are determined to cement the UK’s place as a science and technology superpower by 2030. We will grow the UK economy, create high-paid jobs of the future, protect our security, and radically improve people’s lives through science, innovation and technology. To ensure that consumer connected technology is more secure against cyber threats, the Product Security and Telecommunications Infrastructure Act 2022 (PSTI Act) will mandate that minimum security requirements must be complied with before consumer connectable products can be supplied to UK customers. UK consumers will be the first in the world to benefit from these protections.

I have now made commencement regulations which will bring part 1 of the PSTI Act into effect on 29 April 2024. The Government are also today publishing the technical wording of the new security requirements within the full draft text of the Product Security and Telecommunications Infrastructure (Security Requirements for Relevant Connectable Products) Regulations 2023. Manufacturers and other businesses in the supply chain of these products now have 12 months to transition their businesses to comply with these new security requirements.

From April next year, consumers and businesses across the UK will benefit from world-leading security protections from the threat of cyber-crime:

Universal default and easily guessable default passwords will be banned on consumer connectable products—meaning UK customers will enjoy additional protections from their products being compromised by hackers, and used to launch cyber-attacks against citizens, businesses, critical national infrastructure, and nation states.

Device manufacturers will have to publish contact information allowing vulnerabilities relating to their devices to be reported to them. This will enable manufacturers to maintain an awareness of, and therefore address, existing or future cyber security risks.

Manufacturers will have to be transparent about how long their products will receive security updates for. This will provide security-conscious consumers with vital, standardised security information, that they can use to inform their purchasing decisions, and drive the provision of longer security update periods through market forces.

Manufacturers will also be required to ensure that a customer is made aware of a product’s security update support period before allowing them to purchase the product on the manufacturer’s website.

Officials at the Department for Science, Innovation and Technology have been working closely with industry, consumer rights organisations, and cyber security experts, to ensure the requirements this legislation will set out satisfy the Government’s ambitions. Today, in addition to making commencement regulations, the Government are publishing the technical wording of the new security requirements within the full draft text of the PSTI (Product Security) Regulations 2023:

https://www.gov.uk/government/collections/secure-by-design

Once the notification requirements of international bodies, including the World Trade Organisation, have been complied with, the final draft regulations will be laid before Parliament for scrutiny.

[HCWS752]

Intellectual Property Office: Performance Targets

Paul Scully Excerpts

Tuesday 25th April 2023 Written Statements

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

I am repeating the following written ministerial statement made today in the other place by my noble Friend, the Minister for AI and Intellectual Property, Viscount Camrose:

Our innovation strategy sets our ambitions for an innovation-led economy. Now, more than ever, delivering the Government’s bold plan to grow the UK economy and make it the most innovative and creative economy in the world is vital.

Intellectual property (IP) is a crucial component to unlocking this. IP rights provide incentives for our innovative businesses, our world-renowned scientists and cutting-edge creators to innovate and create, ensuring they are rewarded for their efforts, and wider society can benefit from their work.

We are well-known for our leadership in research and for our excellent scientific and academic institutions. Our innovative nature means businesses continue to start and grow in all areas of the UK. Our creative industries have a global reputation, particularly in music, cinema, literature and computer games. Our world-class IP system underpins this success, and it must continue to do so.

The Intellectual Property Office (IPO) plays a critical role in ensuring the right frameworks are provided to stimulate our innovative economy. The IPO are committed to delivering excellent IP services and developing world-leading IP policies and legislation so that customers can access, use and protect their IP effectively. In order to deliver these commitments, the IPO is also working to support and develop its people and set out a clearly stated organisational culture. The IPO Corporate Priorities 23/24 document sets out a clear plan to deliver during this financial year.

As an Executive Agency and trading fund of the Department for Science, Innovation and Technology (DSIT), the IPO have set targets which are agreed by Ministers and laid before Parliament. I am pleased that today I can inform the House that for the financial year 23/24 the IPO’s strategic targets are:

Launch our Transformed One IPO rights granting service for selected patents customers by end of March 2024.

Achieve an average overall customer satisfaction of 85% or more.

Define the ideal culture to deliver our strategy by October 2023 and develop a detailed culture change plan by January 2024 setting out how we will move from our current culture to our future ideal culture.

Achieve efficiencies worth at least 3.5% of our core operating costs.

The IPO will work with DSIT and other partner organisations to deliver on their priorities, ensuring they support wider Government aims and that resources are focused in areas that will drive innovation and creativity in the UK.

[HCWS738]

Research and Development Funding and Horizon Europe

Paul Scully Excerpts

Tuesday 18th April 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

It is a pleasure to serve under your chairmanship, Mr Hosie. I congratulate the hon. Member for Sheffield Central (Paul Blomfield) on securing this debate on research and development funding, and indeed Horizon Europe. It is a hugely important and timely debate, and I thank the hon. Gentleman for the opportunity to speak to Members today.

As we have heard today, despite our relative size, Britain outperforms our closest competitors. We are a main challenger nation to the US and China in so many areas, with four of the world’s top universities and a technology sector worth more than $1 trillion. Just eight of our university towns are home to more billion-dollar unicorn start-ups than the whole of France and Germany combined. However, when others, including France and Germany, are moving further and faster to invest in science and technology, we have to do the same.

In February, the Prime Minister announced the creation of the Department for Science, Innovation and Technology to ensure that the UK is at the forefront of global scientific and technology advancement and to ensure that the brightest scientists, most brilliant innovators and most ambitious entrepreneurs can turn their ideas into companies, products and services here in the UK that will change lives and drive growth. We are focused on optimising public R&D investment to support our strengths and increase levels of private R&D to make our economy the most innovative in the world.

We are already making swift progress. We have launched the Government’s plan to cement the UK’s place as a science and technology superpower by 2030, challenging every part of Government to put the UK at the forefront of global science and technology through 10 key actions, creating that co-ordinated cross-Government approach. Those key actions include identifying critical technologies; investing in R&D and talent and skills; financing innovative science and technology companies; creating international opportunities; providing access to physical and digital infrastructure; and improving regulation and standards. That delivery starts now. Although the Secretary of State may pause in a week or so for her own delivery, the Department’s work will not pause. We have a raft of projects initially worth around £500 million in new and existing funding that will help to ensure the UK has the skills, talent and infrastructure to take a global lead in game-changing technologies and groundbreaking science.

In line with our focus on delivering long-term economic growth, we remain committed to increasing publicly funded and economy-wide R&D spending. As set out in the 2023 Budget, the Government are turning their vision for UK enterprise into a reality by supporting growth in the sectors of the future. There are huge opportunities to do that by capturing a share of growing global markets in green industries, digital technologies, life sciences, creative industries and advanced manufacturing.

The Government have recommitted to increasing public expenditure on R&D to £20 billion per annum by 2024-25, representing a cash increase of around one third—the largest ever increase in public R&D spending over a spending review period. We have provided UKRI, our national funding body, with a multi-year settlement across all parts of its budget, which will be vital to support our science superpower ambitions. The total UKRI allocation is £25.1 billion for 2022-25, and will reach more than £8.8 billion in the year 2024-25—its highest ever level.

On 25 January, we launched the Advanced Research and Invention Agency—ARIA—a new independent research body custom built to fund high-risk, high-reward scientific research. The Government have committed £800 million to ARIA out to 2025-26. ARIA will help maintain the UK’s position as a science superpower, helping to attract top talent to the UK, grow our economy, boost prosperity and, crucially, invest in break-through technologies with a potential to profoundly change the world for the better.

Clearly, we are also fully committed—we have heard the request—to science and research collaboration, including internationally and with our European counterparts. That is why we are discussing association to Horizon Europe with the EU, and we very much hope that our negotiations will be successful. I know people have been asking for guarantees. Clearly, it is not within our gift unilaterally so we have to negotiate, but Horizon Europe is our preference.

Association needs to be on the basis of a good deal for the UK’s researchers, businesses and taxpayers. We welcome the EU’s recent openness to discussions on UK association to EU programmes following two years of delays. We have always wanted to do this, and the hon. Member for Wirral West (Margaret Greenwood) talked about the Windsor framework and the Northern Ireland protocol. They have helped unlock our move to have these productive conversations now. At the partnership council on 24 March, the UK and the EU agreed to take forward discussions on UK association in the coming weeks. Indeed, the Secretary of State travelled to Brussels on 4 April for an introductory meeting with the EU’s research and innovation commissioner Mariya Gabriel to discuss research collaboration, including the UK’s expectations around association to Horizon Europe.

Our discussions will need to reflect the lasting impact of two years of delay to the UK’s association, which means, as we have heard, researchers and businesses across the UK have missed out on over two years of a seven-year programme. In all scenarios, we will continue to put the interests of researchers, innovators and entrepreneurs across the UK first, so that they can take forward groundbreaking research and drive forward innovation with their international partners. With that in mind, if we are not able to secure association to Horizon Europe on fair and appropriate terms, and I highlight again that that is very much our preference, we will implement Pioneer.

Pioneer is the Government’s bold, ambitious alternative to Horizon Europe, should we be unable to reach that agreement with the EU on association. On 6 April, as we have heard, the Government published their prospectus on Pioneer. That has been developed with input from researchers and businesses across the UK, and it sets out the proposals that would inform the scheme. By publishing the prospectus now, we are giving the research community and industry a further opportunity to provide feedback to shape these proposed plans. Our plans provide clear reassurance that the Government are fully prepared to launch an ambitious alternative scheme should we be unable to associate to Horizon Europe. We look forward to engaging with and seeking further input from researchers and businesses as we develop these proposals over the coming weeks and months.

Pioneer would deliver four interconnected programmes covering offers for talent, global, innovation and R&D infrastructure to boost the UK’s R&D system. These programmes would be supported by the Horizon Europe guarantee, and a transitions package would ensure there is no gap in investment flowing to the sector. Pioneer would receive at least the same amount of funding as the UK would have paid to associate to Horizon had we associated from 2021-27, which means the UK would invest around £14.6 billion in Pioneer to the end of 2027-28, including the support we are already providing to the sector, such as via the Horizon guarantee. I will answer the maths question from the hon. Member for Cardiff South and Penarth (Stephen Doughty) because he mentioned some of the figures. Pioneer funding includes £2 billion for talent, £3.5 billion for innovation, £3.8 billion for global and £1.7 billion for infrastructure. Add the funding we are already providing for the sector, including the Horizon guarantee—a further £3.6 billion—and that adds up to the £14.6 billion.

Regardless of whether we reach an agreement with the EU on association or we launch Pioneer—that proposed alternative—the Government will ensure that UK researchers and businesses continue to benefit from world-leading collaboration opportunities with colleagues from Europe and beyond. The Government have already committed investment for UK researchers to engage in and benefit from global collaboration through the international science partnerships fund. That was designed to deepen scientific collaboration between the UK and international R&D powers on strategically important science themes. In December last year, £119 million for ISPF phase 1 was announced. That allows UK researchers and innovators to collaborate with international partners on multidisciplinary projects. It will help the UK and its partners to deliver bigger, better science than one country can alone.

Global collaboration under the ISPF will give researchers access to global talent, large-scale facilities, research ecosystems and markets to swiftly move forward ideas to greater maturity, applicability and commercialisation. It is being delivered through trusted and established partners, including UK Research and Innovation, the UK national academies and selected public research establishments, such as the Met Office, UK Atomic Energy Authority and the National Physical Laboratory. Should we not be able to associate to Horizon Europe, this fund would be expanded to tackle global challenges and develop future technologies, positioning UK researchers at the heart of global solutions.

I would like to thank my right hon. Friend the Member for Ludlow (Philip Dunne) and the hon. Members for Wirral West, for Cardiff South and Penarth, for Hammersmith (Andy Slaughter), for York Central (Rachael Maskell), and for Midlothian (Owen Thompson) for their contributions. There is a network of universities and innovators in many of the constituencies of hon. Members, across the UK in all nations. We must ensure we keep that collaboration going and build on those strengths. We are committed to being at the centre of what the Department for Science, Innovation and Technology can deliver. That will cement the UK’s place as a science and technology superpower by 2030, increase publicly funded and economy-wide R&D spending, optimise public R&D investment to support areas of relative UK strength and increase the level of private R&D to make our economy the most innovative in the world.

As I have set out, we are discussing association to Horizon Europe with the EU, and we hope our negotiations will be successful. However, if we are not able to secure association on fair and appropriate terms, we will pioneer a long-term, bold and ambitious programme to support research and innovation in the UK. I can assure hon. Members that we are and we will continue to negotiate in good faith with the EU, because international collaboration with our closest partners is at the heart of what we are trying to do.

Data Protection and Digital Information (No. 2) Bill

Paul Scully Excerpts

2nd reading
Monday 17th April 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

I thank all Members for their contributions, including the hon. Members for Manchester Central (Lucy Powell), for Glasgow North West (Carol Monaghan), for Bristol North West (Darren Jones), for Cambridge (Daniel Zeichner), for Oxford West and Abingdon (Layla Moran), for Strangford (Jim Shannon) and for Barnsley East (Stephanie Peacock) and my right hon. Friend the Member for Maldon (Sir John Whittingdale) and my hon. Friends the Members for Folkestone and Hythe (Damian Collins), for Loughborough (Jane Hunt) and for Aberconwy (Robin Millar). The debate has been held in the right spirit, understanding the importance of data, and I will try to go through a number of the issues raised.

Adequacy has come up on a number of occasions. We have been straight from the beginning that adequacy is very important and we work with the EU Commission on this; we speak to it on a regular basis, but it is important to note that the EU does not require exactly the same rules to be in place to be adequate. We can see that from Japan and from New Zealand, so we are trying to get the balance right and making sure that we remain adequate not just with the EU but with other countries with which we want to have data bridges and collaboration. We are also making sure that we can strip back some of the bureaucracy not just for small businesses, but for public services including GPs, schools and similar institutions, as well as protecting the consumer, which must always be central.

Automated decision-making was also raised by a number of Members. The absence of meaningful human intervention in solely automated decisions, along with opacity in how those decisions can be reached, will be mitigated by providing data subjects with the opportunity to make representations about, and ultimately challenge, decisions of this nature that are unexpected or seem unwarranted. For example, if a person is denied a loan or access to a product or services because a solely automated decision-making process has identified a high risk of fraud or irregularities in their finances, that individual should be able to contest that decision and seek human review. If that decision is found to be unwarranted on review, the controller must re-evaluate the case and issue an appropriate decision.

Our reforms are addressing the uncertainty over the applications of safeguards. They will clarify when safeguards apply to ensure that they are available in appropriate circumstances. We will develop that with businesses and other organisations in guidance.

The hon. Member for Glasgow North West talked about joint-working designation notices and it is important to note that the police and intelligence services are working off different data regimes and that can make joint-working more difficult. Many of the changes made in this Bill have come from learning from the Fishmongers’ Hall terrorist incident and the Manchester Arena bombing.

Members raised the question of algorithmic bias. We agree that it is important that organisations are aware of potential biases in data sets and algorithms and bias monitoring and correction can involve the use of personal data. As we set out in our response to the consultation on the Bill, we plan to introduce a statutory instrument that will provide for the monitoring and correction of bias in AI systems by allowing the processing of sensitive personal data for this purpose with appropriate safeguards. However, as we know from the AI White Paper we published recently, this is a changing area so it is important that we remain able to flex in Government in the context of AI and that type of decision-making.

The hon. Member for Bristol North West talked about biometrics. That is classed as sensitive data under the UK GDPR, so is already provided with additional protection. It can only be processed if a relevant condition is met under article 9 or schedule 1 of the Data Protection Act. That requirement provides sufficient safeguards for biometric data. There are significant overlaps in the current oversight framework, which is confusing for the police and the public, and it inhibits innovation. That is why the Bill simplifies the oversight for biometrics and overt surveillance technologies.

The hon. Gentleman talked about age-appropriate guidance. We are committed to protecting children and young people online. The Bill maintains the high standards of data protection that our citizens expect and organisations will still have to abide by our age-appropriate design code. Any breach of our data protection laws will result in enforcement action by the Information Commissioner’s Office.

The hon. Gentleman also talked about data portability. The Bill increases data portability by setting up smart data regulations. He talked about social media, but it is far wider than that. Smart data is the secure sharing of customer data with authorised third parties on the customer’s request. Those third parties can then use that data to provide innovative services for the consumer or business user, utilising AI and data-driven insights to empower customer choice. Services may include clear account management across services, easier switching between offers or providers, and advice on how to save money. Open banking is an obvious live example of that, but the Bill, with the smart data changes within it, will turbocharge the use of this matter.

My hon. Friend the Member for Loughborough talked about policing. It will save 1.5 million police hours, but it is really important that we do more. We are looking at ways of easing redaction burdens for the police while ensuring we maintain victim and witness confidence. It is really important to them, and in the interests of public trust, that the police do not share information not relevant to a case with other organisations, including the Crown Prosecution Service and the defence. Removing information, as my hon. Friend says, places a resource burden on officers. We will continue to work with the police and the Home Office on that basis.

On UK-wide data standards, raised by my hon. Friend the Member for Aberconwy, improving access to comparable data and evidence from across the UK is a crucial part of the Government’s work to strengthen the Union. The UK Government and the Office for National Statistics have an ongoing and wide-ranging work programme to increase coherency of data across the nations, as my hon. Friend is aware. We remain engaged in discussions and will continue to work with him, the Wales Office and the ONS to ensure that we can continue.

On international data transfer, it is important that we tackle the uncertainties and instabilities in the current regime, but the hon. Member for Strangford is absolutely right that in doing that, we must maintain public trust in the transfer system.

Finally, on the ICO, we believe that the Bill does not undercut its independence. It is really important that, for the trust issues I have talked about, we retain its independence. It is not about Government control over an independent regulator and it is not about a Government trying to exert influence or pressure for what are deemed to be more favourable outcomes. We are committed to the ICO’s ongoing independence and that is why we have worked closely with the ICO. The Information Commissioner himself is in favour of the changes we are making. He has spoken approvingly about them.

This is a really important Bill, because it will enable greater innovation while keeping personal protections to keep people’s data safe.

Question put and agreed to.

Bill accordingly read a Second time.

Data Protection and Digital Information (No. 2) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Data Protection and Digital Information (No. 2) Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 13 June 2023.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.—(Joy Morrissey.)

Question agreed to.

Data Protection and Digital Information (No. 2) Bill (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Data Protection and Digital Information (No. 2) Bill, it is expedient to authorise the payment out of money provided by Parliament of—

(a) any expenditure incurred under or by virtue of the Act by the Secretary of State, the Treasury or a government department, and

(b) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Joy Morrissey.)

Question agreed to.

Data Protection and Digital Information (No. 2) Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Data Protection and Digital Information (No. 2) Bill, it is expedient to authorise:

(1) the charging of fees or levies under or by virtue of the Act; and

(2) the payment of sums into the Consolidated Fund.—(Joy Morrissey.)

Question agreed to.

Data Protection and Digital Information (No. 2) Bill (Carry-over)

Motion made, and Question put forthwith (Standing Order No. 80A(1)(a)).

That if, at the conclusion of this Session of Parliament, proceedings on the Data Protection and Digital Information (No. 2) Bill have not been completed, they shall be resumed in the next Session.—(Joy Morrissey.)

Question agreed to.

Oral Answers to Questions

Paul Scully Excerpts

Wednesday 15th March 2023 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

According to Tech Nation, Slough, which is the silicon valley of the UK, has experienced a 536% increase in the formation of digital start-ups in the last decade. Given that artificial intelligence is of strategic importance to the UK, why have the Government cut research and development tax credits for small and medium-sized enterprises?

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

The hon. Gentleman will know that a review of R&D tax credits is being conducted. The Chancellor will be speaking later, but because of Tech Nation and the work that has been done over the last decade, we have a great tech ecosystem to build on.

[Miriam Cates (Penistone and Stocksbridge) (Con)]

A year ago, the Department announced that Penistone had been chosen for the UK’s first trial to deliver high-speed broadband through water pipes. The fibre in the water project, which is happening in partnership with Yorkshire Water, is of huge interest to my constituents as it promises the opportunity for rural areas to access high-speed broadband without the cost and inconvenience of major infrastructure works. Will the Minister update me on the progress of the project and tell me how quickly my constituents might see the benefits?