Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the UK’s performance, relative to global peers, in translating AI innovation into commercial and economic outcomes; and what steps they are taking to support competitiveness, scale-up growth and technology adoption in this area.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
We have a strong and globally competitive AI ecosystem, and we are focused on ensuring that this strength translates into commercial success, productivity gains and public benefit.
We have established the Sovereign AI Unit, backed by up to £500 million, to invest in and support high-growth UK AI companies. The Government will encourage innovation by acting as a first customer for promising UK start-ups that are building high-quality AI hardware products through an Advance Market Commitment of up £100 million. We are also strengthening the UK’s scale-up finance ecosystem more broadly, including increasing the capitalisation of the National Wealth Fund to £27.8 billion and scaling up the British Business Bank to £25.6 billion, with expanded investment into growth-stage funds.
We are committed to ensuring the UK is the leading adopter of AI in the G7, and the Government will look at how regulation, data and access to finance can support adoption including by working closely with sectoral AI Champions to identify new solutions. DSIT will track the UK's progress by using national and international adoption surveys, applying adjustments where needed to improve cross-country comparability.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the growth of UK-based AI start-ups, including the emergence of new unicorn companies; and what steps they are taking to improve access to scale-up finance, talent and long-term competitiveness in this area.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The UK has a flourishing AI start-up ecosystem, and as of early 2026, the UK is home to over 150 tech unicorns, ranking it 3rd globally for venture capital-backed innovation.
We’re strengthening the UK’s scale-up finance ecosystem to help high-growth companies - including AI start-ups - start, scale and remain in the UK. This includes strengthening long-term capital through an expanded remit for the National Wealth Fund, increasing its capitalisation to £27.8 billion and scaling up the British Business Bank to £25.6 billion, as well as increasing annual investments by two-thirds to around £2.5 billion and committing £5 billion to growth-stage funds.
We have a world leading R&D and talent ecosystem which is a major attraction globally. We have also established the Sovereign AI Unit, backed by up to £500 million, to invest in and support high-growth UK AI companies. Our AI Opportunities Action Plan demonstrates how we are delivering a long-term strategy to ensure that the UK remains one of the best places in the world to start, scale and grow AI companies.
Asked by: Andrew Rosindell (Reform UK - Romford)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, whether she has made an assessment of the potential impact of the Sovereign Wealth Fund being established in Anguilla on the UK economy.
Answered by Stephen Doughty - Minister of State (Foreign, Commonwealth and Development Office)
The Government of Anguilla is responsible for devolved matters. UK Government officials including in the Foreign, Commonwealth and Development Office play an ongoing role supporting our Overseas Territories to pursue sustainable economic and fiscal strategies.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the Department for Education:
To ask the Secretary of State for Education, what has been the market share of (a) private equity firms, and (b) sovereign wealth funds in the additional needs sector in each year since 2020.
Answered by Georgia Gould - Minister of State (Education)
Based on publicly available information, we understand that approximately 300 independent special schools (34% of the sector), educating around 14,000 pupils, are owned by fifteen private equity funds, including sovereign wealth funds (SWF). Within these 300 schools, two sovereign wealth funds, Abu Dhabi and Qatar, own 42 schools (5% of the total market). The Qatar Investment Authority acquired Senad Group in 2008, while Mubadala Capital (part of the Abu Dhabi SWF) acquired Witherslack Group from a UK private equity firm in 2021. SWF owned six independent special schools in 2020, increasing to the current level in 2021.
Asked by: Andrew Rosindell (Reform UK - Romford)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps her Department has taken to help prevent British newspapers from being subject to foreign influence.
Answered by Ian Murray - Minister of State (Department for Science, Innovation and Technology)
This Government is committed to a pluralistic media landscape, and it is vital that the UK has in place strong measures to protect this. The Foreign State Influence (FSI) media merger regime is a key part of this; it prevents foreign states from being able - directly or indirectly - to control or influence the policy of UK newspapers and news periodicals.
In July 2025, DCMS passed targeted exceptions to the initial FSI newspapers regime, to allow certain state-owned investment funds - such as sovereign wealth funds or pension funds - to invest up to 15% in UK newspapers and news periodicals.
The 15% threshold is below the level which the Competition and Markets Authority considers to typically give rise to material influence when assessing jurisdiction under the Enterprise Act 2002. This approach will still limit any scope for foreign state control or influence of news organisations while giving them much-needed flexibility to seek business investment that supports their long-term sustainability.
In October 2025, DCMS laid before Parliament further changes to the Enterprise Act, proposing to apply a 15% cap on aggregate holdings of shares or voting rights in a newspaper owner by SOIs acting on behalf of foreign powers of different countries. It also introduces a requirement for SOIs acquiring more than 5% of shares or voting rights in a UK newspaper owner directly to give the Secretary of State a qualifying notification within 14 days of the acquisition being made, and publish appropriate details of that notification within the same timeframe. These Regulations will be debated when Parliamentary time allows, and subject to Parliamentary approval will come into force 31st January 2026.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has identified priority regions for investment arising from recent Gulf trade agreements.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Chancellor is committed to building strong relationships with Gulf countries and Sovereign Wealth Funds, as reflected in her attendance of the Future Investment Initiative Conference in Saudi Arabia. She engaged with key partners to explore opportunities that could benefit regions across the UK and progress negotiations on a free trade agreement with the Gulf Cooperation Council. The visit also helped unlock £6.4bn in two-way trade and investment between the UK and Saudi Arabia, including a £5bn MoU between UK Export Finance and the Saudi Public Investment Fund to support jobs and manufacturing across the UK.
Attracting investment into every region of the UK is central to this government’s mission to drive national growth. Partnering with the private sector is essential and is why at the Regional Investment Summit last month the Chancellor announced the creation of the Sterling 20. The new grouping of institutional investors will further support mobilising institutional investment by raising awareness among investors of government-led programmes and initiatives. This will allow members to help shape and co-design investment opportunities, so they are attractive, unlocking capital for UK infrastructure throughout the UK.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential role of UK sovereign investment vehicles in facilitating co-investment opportunities with Gulf partners.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Chancellor is committed to building strong relationships with Gulf countries and Sovereign Wealth Funds, as reflected in her attendance of the Future Investment Initiative Conference in Saudi Arabia. She engaged with key partners to explore opportunities that could benefit regions across the UK and progress negotiations on a free trade agreement with the Gulf Cooperation Council. The visit also helped unlock £6.4bn in two-way trade and investment between the UK and Saudi Arabia, including a £5bn MoU between UK Export Finance and the Saudi Public Investment Fund to support jobs and manufacturing across the UK.
Attracting investment into every region of the UK is central to this government’s mission to drive national growth. Partnering with the private sector is essential and is why at the Regional Investment Summit last month the Chancellor announced the creation of the Sterling 20. The new grouping of institutional investors will further support mobilising institutional investment by raising awareness among investors of government-led programmes and initiatives. This will allow members to help shape and co-design investment opportunities, so they are attractive, unlocking capital for UK infrastructure throughout the UK.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to ensure that the UK’s investment screening regime supports responsible sovereign wealth fund investment.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
The UK has close investment relationships with many of the world’s sovereign wealth funds, supporting mutually beneficial, strategic investment into the UK.
The National Security and Investment Act (NSIA) 2021 gives the UK Government the power to scrutinise and, where necessary, intervene in a transaction that is captured by the act regardless of the acquirer. Every NSIA transaction is taken on its own merit, on a case-by-case basis.
The legislation enables investment into sensitive sectors of our economy while providing robust protections to ensure the UK’s national security is not compromised.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether his Department has undertaken analysis of barriers to inward investment from sovereign wealth funds into UK (a) infrastructure and (b) growth sectors.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
This government maintains strong relationships with leading sovereign wealth funds, engaging in regular dialogue to understand barriers they face when investing in UK infrastructure and growth sectors. The UK's 10 Year Strategy Infrastructure aims to restore confidence and drive growth with £725 billion for infrastructure, transforming project delivery. The Industrial Strategy White Paper identified key investment barriers including planning delays, infrastructure gaps, regulatory burdens, and skills shortages. Government reforms to address these barriers include the Strategic Sites Accelerator, regulatory innovation, planning improvements, and targeted support for industrial clusters and skills development.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of sovereign wealth fund partnerships on UK regional growth priorities.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Increasing economic growth is a strong priority of this Government and ensuring growth is felt in all regions of the UK is a core part of the Growth Mission. The Government recognises the important role that sovereign wealth fund partnerships can play in supporting this mission.This Government has expanded the Office for Investment (OfI) including pursuing deeper investment collaboration with global sovereign wealth funds (SWFs) in support of our first Modern Industrial Strategy. The OfI manages multi-billion-pound Sovereign and Strategic Investment Partnerships with SWFs and provides a channel for collaboration. The OfI has already facilitated over £30bn in commitments and approximately £20bn in capital deployed from these partners, contributing to growth and prosperity across the country.