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Posted: Tue 21st Jul 2026
6 min read
The new Prime Minister invites the AI minister to the top table while folding tech functions into the expanded business department, renaming DBT as DBIST.
Andy Burnham moved quickly on his first day as Prime Minister, reshaping Whitehall around what he calls a "coordinated national industrial strategy" and inviting the AI minister to attend cabinet for the first time.
The Department for Science, Innovation and Technology (DSIT), created in 2023 by Rishi Sunak's government, has been folded into a new Department for Business, Innovation, Science and Trade.
The expanded ministry will be led by Jonathan Reynolds (pictured), who returns to the business brief he held under Sir Keir Starmer before becoming chief whip in September last year.
Technology secretary Liz Kendall was among those removed in Monday's reshuffle. But Kanishka Narayan, appointed AI minister by Keir, has been invited to attend cabinet – a signal that artificial intelligence will have a voice at the highest level of government.
The UK follows other countries in creating a high-level AI minister role. France and Canada have both created similar positions over the last few years.
Kanishka, a former venture capitalist, is popular in the tech world.
"AI is likely the most significant technology in human history. Its impact will dwarf other things," he wrote on X yesterday morning. "The best case for it is compelling beyond our dreams: a reindustrialised Britain, stronger national security, public services transformed for the better."
The Vale of Glamorgan MP, born in India and raised in Cardiff, has overseen AI policy since entering Parliament in 2024, including the AI Security Institute, semiconductors and online safety. He described the prime minister's invitation to cabinet as "a sign of his deep commitment to AI's importance."
Polly Dhaliwal, chief operating officer of Enterprise Nation, welcomed the appointment:
"We're pleased to see Kanishka Narayan given a seat at the cabinet table as AI minister. It's a strong signal of how seriously the government is taking AI.
"We've valued our work with DSIT on science, technology and innovation, and we hope that continues just as constructively under DBIST."
However, the decision to merge the department has raised concerns in the technology sector. TechUK and the Startup Coalition wrote to the PM, warning that "DSIT brings researchers, AI practitioners, innovators and policymakers together in one place, giving the tech sector a single government partner that understands it."
They cautioned that splitting up work on the AI Security Institute, the Sovereign AI Fund and UK Research and Investment "risks slowing momentum and investment in a sector which is growing at 10% a year."
Enterprise Nation is watching how the transition unfolds.
Polly added:
"As the new department takes shape, we want to see big tech held to their commitments to help the UK remain the fastest upskilled nation in the G7.
"That means continuing DSIT's work on AI upskilling and reaching 10 million workers who are hardest to reach, not just the ones already engaged with technology. Enterprise Nation will keep working closely with government to support small businesses through this transition, and we look forward to supporting Kanishka in his new role."
For small business owners, three appointments will prove particularly significant.
At the Treasury, John Healey, the former defence secretary, becomes chancellor. He served as economic secretary and financial secretary under Tony Blair and now inherits Andy's promises to abolish business rates for cafés, shops and hairdressers, and cut them for pubs.
He also takes on the live consultation on closing the online marketplace VAT loophole, which closes on 18 August.
Jonathan Reynolds' expanded business department will oversee the Backing Your Business plan, the Commercial Payments Bill on late payments and the technology adoption agenda.
Lisa Nandy keeps the culture brief, covering the creative industries and tourism, sectors packed with sole traders and micro firms. No.10 confirmed the rebranding of the Department for Culture, Media and Sport (DCMS) as the Department for Digital, Culture, Media and Sport (DDCMS).
At energy, Miatta Fahnbulleh, elected MP for Peckham in 2024, replaces Ed Miliband. Energy costs remain among the most frequently cited concerns from small business owners, and her department will determine how quickly bills fall for small firms.
Lucy Powell takes education, Pat McFadden stays at work and pensions, and Dame Angela Eagle takes farming and rural affairs. Heidi Alexander remains at transport.
Douglas Alexander stays as Scotland secretary, while Stephen Kinnock becomes Wales secretary and Sir Chris Bryant takes Northern Ireland.
As we went to press, we understand Blair McDougall MP, Minister for Small Business and Economic Transformation, keeps his position for now, despite earlier speculation that he might replace Alexander as Scotland secretary.
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