Labour is squandering Britain’s lead on the AI revolution
The UK is well positioned to lead the coming AI revolution, but the Labour government is doing everything it can to undermine this country’s strength in tech, says Alan Mak
The UK is on the cusp of a technological revolution. AI offers a wealth of growth opportunities and Britain can be a world leader in this field. But, Labour’s ‘AI Action Plan’ cannot deliver that leadership.
The ‘plan’, delayed for months and riddled with bureaucratic jargon, lacks concrete actions, funding and metrics for success.
When looked at in tandem with Labour’s decision to axe crucial investments and punish innovators with cripplingly higher taxes, it shows Labour’s intent to undermine the strong foundations laid by the previous Conservative government.
This analogue Labour Government is unfit for the digital age, and Britain deserves much better.
The Conservatives acted early and quickly on AI: we saw which way the winds of innovation were blowing and decisively backed AI.
We did not follow the EU’s prescriptive, anti-innovation AI Act – a Brexit benefit that has allowed us to stay at the forefront of technology, and which I hope Labour will want to acknowledge and protect. Even President Macron has admitted the EU’s approach to AI has made it uncompetitive.
In fact, Keir Starmer praised the Conservatives’ record yesterday, starting his own ‘plan’ by admitting that Britain starts from a “position of strength” because of Conservative policies.
He should follow in our footsteps, keeping up with our Smarter Regulation programme and making sure that regulation is a last resort rather than a first.
Labour inherited a thriving AI sector, with a proportionate regulatory base built by Conservatives.
Instead of building on this momentum, Starmer has already begun to squander his inheritance with poor decisions and a complete lack of vision.
Their ‘plan’ is a textbook example of how to throttle progress with bureaucracy and dithering.
It arrived months late. It’s full of vague ambitions and it’s brief on specifics.
In place of actions and detailed spending commitments, the ‘plan’ offers aspirational dates and empty jargon – “mission delivery boards” and “sector champions.” It’s like they’re not even trying.
How can a lean start-up thrive when taxes are hiked to chew away at your margins?
Worse, Labour has taken steps that undermine Britain’s AI sector. They’ve axed vital investment, slashing £1.3bn in funding for the exascale supercomputer and AI research resources – projects that worked to maintain our country’s competitive edge in this competitive world.
Worse still is their Budget’s blatant moves to punish technology workers. Labour’s Budget imposed a higher National Insurance Tax, which costs employers £900 more annually. This hammers employees and shrinks the job market.
How can a lean start-up thrive when taxes are hiked to chew away at your margins? It’s mismanagement, plain and simple.
Innovators expect to see a government taking steps forward, not back – and this Labour AI ‘plan’ does the opposite of what our sector needs, wants and deserves.
Britain’s future as a global technology leader depends on a legal and economic environment that allows free enterprise to flourish.
Not bureaucratic delay and indecision. Labour’s underwhelming AI ‘plan’, combined with crippling tax hikes and yet more red tape, will squander the UK’s hard-earned leadership in artificial intelligence.
Labour’s analogue approach isn’t good enough for the digital age. Britain deserves a government ready to embrace the pace of innovation with a vision to unlock the potential of a sector Labour is holding back with red tape and suspicion.
Only then can we lean into the next tech revolution and take the lead.
Alan Mak is shadow secretary of state for science, innovation and tech and MP for Havant