UK's Tech Reset: Will It Finally Deliver Real Business Outcomes?

Jan de Vries · 2026-07-23

Let's cut through the acronyms and Whitehall red tape. The real question is whether government policy can finally connect with what tech businesses actually need to grow. ### The DSIT Experiment: A Short, Bumpy Ride Before our new UK Prime Minister, Andy Burnham, started commuting to "Number 10" on Monday, tech bosses and policy wonks were both celebrating and worrying about plans to scrap the Department for Science, Innovation and Technology (DSIT). DSIT was still a newbie at the government's top table. Created just in February 2023, its promises, plans, and outcomes have gotten mixed reviews. Now, folding it into the newly formed Department for Business, Innovation, Science and Trade (DBIST) — or the Department for Business and Trade (DBT) — has sparked real concerns about how policy will actually work and get delivered. It feels like a frustrating game of musical chairs with department acronyms and some fresh branding. But maybe, just maybe, it makes some sense. ### What Was DSIT Supposed to Do? Originally, DSIT promised to turn the UK into a "science and technology superpower" by 2030. The big pledge? A multi-million-pound increase in public R&D investment to turbocharge five key technologies: Quantum, AI, Engineering Biology, Semiconductors, and Future Telecoms — plus life sciences, space, and green tech. But the reality has been messy. The UK Semiconductor Strategy arrived over a year late and lacked specifics, pending feasibility studies. The UK Quantum Strategy was also delayed and widely criticized for not showing how to move from research to actual commercial products backed by real infrastructure. That 2030 goal probably seemed far enough away back in 2023, but time is running out. ### R&D Tax Credits: A Mixed Bag The 2024 merger of UK R&D Tax Credit schemes, overseen by DSIT, got equally mixed reactions. On the plus side, requiring most R&D to happen onshore helped reduce fraud. That was generally a good move. But here's the problem: by removing the structure that specifically supported UK SMEs — the very businesses that could have used the relief to innovate and scale — the scheme turned into a bureaucratic nightmare. It's like solving a Rubik's Cube blindfolded. ### Four Prime Ministers, One Department It's also worth remembering that the UK has had four Prime Ministers since DSIT was created. Each one left their own mark, often in opposing directions, while trying to make sense of a department packed with talented civil servants but often overwhelmed or dysfunctional. ### Scrapping DSIT: A Chance to Connect with Business I love the UK and working with its incredible entrepreneurs. I've had the privilege of collaborating with many government departments. Some, especially DBT and the Treasury, are genuine supporters of founders. They connect Tech Transfer Offices, academia, and other vital institutions with the scaling business community. For me, DSIT never quite nailed it. - DBT and Treasury send informed, influential people to our summits. - They respond to emails, listen, and even convene weekend meetings. - They genuinely want to support entrepreneurs developing world-changing tech. I checked my inboxes and haven't received a single email from a named contact at DSIT, despite trying repeatedly to engage. Over the past decade, I've helped found five UK companies and raised about $140 million (GBP 100 million). In the last three years alone, I've helped founders through Venture.Community raise another $24 million (GBP 23.9 million). You'd think I'd be on DSIT's radar. > "The best government departments don't just create policy — they pick up the phone." My background includes building liquid-cooled GPU clusters for inference back in 2013 and contributing to the EU Exascale program. So when I say the UK needs a real reset that connects policy with outcomes, I mean it. The question now is whether this new structure can actually deliver.