Lords Communications Committee publishes Government response to its scaleups report
Friday 4 April 2025
The House of Lords Communications and Digital Committee has published the Government’s response to its report AI and creative technology scaleups: less talk, more action.
The report, which was published in February, said the UK was at risk of becoming an ‘incubator economy’: one where innovative AI and creative technology companies launch domestically, but move overseas or sell up to foreign investors as they grow and become profitable.
The Committee called on the Government to review and consolidate a complicated ‘spaghetti’ of support schemes that companies found difficult to navigate, to avoid UK tech unicorns galloping overseas as they expand. It also emphasised the need for “sustained political commitment and a laser focus” to deliver the AI Opportunities Action Plan.
In its response, the Government stated that it is “taking action to improve the landscape of support” for companies that are looking to scale. It pointed to the upcoming industrial strategy, as well as the creation of a new agency, the Business Growth Service, that will aim to help UK companies access the support and advice they need. The Government also said it is “seeking to reduce the overall number of programmes” run by UKRI.
On AI, the response highlights that a longer-term plan for computing infrastructure will be published this spring. It also gives new details on the proposed National Data Library which it says will be “guided by the principles of public law and the requirements of the UK's data protection legislation, including the data protection principles and data subject rights.”
The Government also set out more details on its plans regarding AI and copyright, saying a future ‘opt-out’ model “would have to be underpinned by requirements for AI model developers to be more transparent about how they obtain their training material.” The Government says it will proceed only when it is confident that there are rights reservation tools available that are “accessible, easy to use and effective for rights holders of all sizes”.
Commenting on the response, Baroness Keeley, Chair of the Committee, said:
“The Committee’s report called for swift action to enable the UK’s tech and creative industries to thrive. The Government’s response highlights several important announcements it is scheduled to make in the coming months, including the industrial strategy, the creative industries sector plan and the long-term plan for computing infrastructure. A priority for each of these must be removing barriers to ensure that innovative homegrown businesses can flourish in the UK.
“It is positive to hear that the Government is taking stock of the programmes run by UKRI and Innovate UK, but it is not clear that the Committee’s call to ‘do more by doing less’ has fully hit home. Care must be taken to ensure that the Business Growth Service really does make it easier for business owners to navigate the help that’s available, rather than adding further complexity to the existing landscape of schemes."
