Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the findings of SumUp's UK Business Confidence Report 2025, and of the implications of those findings for policies relating to the cost pressures faced by small and independent retailers.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
We recognise the challenges facing businesses at the moment. This is why we are taking action – including through creating a fairer business rates system which includes introducing permanently lower rates for eligible retail, hospitality and leisure properties.
We're protecting the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all this year.
We also recognise the challenge in accessing the right skills which is why we've created Skills England, the new Growth and Skills Levy, the introduction of the Lifelong Learning Entitlement, as well as qualifications reform and the Independent Curriculum and Assessment Review, this Government is ensuring employers will be better supported to recruit and train the domestic workforce with the skills they need.
Finally, our Plan for small and medium-sized businesses aims to tackle late payments, boost access to finance, and remove red tape to enable SMEs across the country to grow and thrive.
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 steps they are taking to work with technology companies and child safety agencies on regulatory frameworks for detecting child protection risks in artificial intelligence systems.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Illegal provisions have been in place since March, and additional protections for children since July of this year. Under the Online Safety Act, AI services that allow users to share content with one another or search live websites to provide results must protect all users from illegal content and children from harmful content.
The Government engages with a range of stakeholders on the impact of AI and will continue to act to address new and emerging AI harms. Through the Crime and Policing Bill we are introducing an offence to criminalise AI models which have been optimised to create child abuse material and have tabled amendments to support the stringent testing of AI systems for child sexual abuse material risks.
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 steps they are taking to monitor the compliance of artificial intelligence systems deployed in the UK with standards on privacy, transparency and non-discrimination.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The UK’s data protection framework adopts a technology-neutral and principles-based approach, that applies to all organisations processing personal data, including those deploying Artificial Intelligence systems. The Information Commissioner’s Office (ICO), which is responsible for enforcing data protection laws, has taken steps to provide guidance on how data protection law applies specifically to AI systems, including through updates following recent generative AI consultation series. The ICO also has the power to investigate and impose penalties for non-compliance. Organisations deploying AI systems are required to ensure that any personal data is processed fairly, lawfully, transparently, and securely. Where legal or similarly significant decisions have been made about individuals based solely on automated processing, organisations must put in place safeguards to allow individuals to exercise their right to make representations about the decisions, contest that decision, and to obtain human intervention for it.
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 steps they are taking to support the development of UK-based autonomous and agentic artificial intelligence start-ups, particularly in regard to partnerships and infrastructure.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government is backing UK-based AI start-ups through targeted investment and strategic partnerships via several initiatives.
In partnership with DSIT, Innovate UK is launching a £1 million Prize Fund. This initiative aims to accelerate Agentic AI adoption for design across Advanced Manufacturing, Health and Life Sciences, and the Creative Industries.
Alongside this, the Sovereign AI Unit was announced in the AI Opportunities Action Plan as a new initiative specifically designed to build homegrown capability in emerging areas of the AI ecosystem. Backed by £500 million at the Spending Review, the programme is focused on unlocking opportunities where targeted public intervention can support UK leadership, scale national champions, and secure long-term strategic advantage.
The government has also committed over £1 billion to expand the capacity of the AI Research Resource (AIRR) at least twentyfold by 2030. AIRR is now live and is free to use for academics, public sector organisations, and SMEs. By taking these measures, we are ensuring the UK remains a top destination for leading AI innovation, fostering resilience and long-term prosperity.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government what steps they are taking to support collaboration between artificial intelligence researchers and video game developers to increase innovation and high-skilled employment.
Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)
The government recognises AI’s established role in the UK's video game sector, such as supporting content generation and character behaviours. As technology advances, AI has the potential to further enhance creativity, efficiency, and accessibility in games development.
UK Research and Innovation (UKRI) has invested in the Centre for Doctoral Training in Intelligent Games and Game Intelligence (IGGI) since 2014. IGGI has produced over 60 PhD graduates at the intersection of AI, games, and human-computer interaction, focused on using games to drive innovation, improve well-being, and tackle societal challenges. Graduates have turned research into business value across the creative industries, including roles at Sony AI and Google DeepMind. The Government will continue engaging with the games industry to understand opportunities and challenges regarding responsible use of AI, to ensure the UK’s innovative games industry thrives in the age of AI.
Our Creative Industries Sector Plan, published in June, announced a number of measures that will support innovation across the creative industries. This includes a £100 million investment to support R&D creative clusters across the UK; and the UKRI will lead efforts to significantly increase public funding and leverage substantial industry investment to promote R&D and innovation in the Creative Industries.
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 impact of the decision of the High Court in Getty Images v Stability AI [2025] EWHC 2863 (Ch) on copyright and innovation policy, in particular in relation to the use of copyrighted materials to train AI models.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government is aware of the judgment in this case and is considering its implications. We are currently preparing a report on copyright and artificial intelligence, for publication next year. This report will take into account a range of views and evidence, including this judgment.
We recognise how important decisions on AI and copyright are to individuals and business across the creative industries and AI sector and are committed to developing an approach that allows both to thrive.
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 Cyber Security Breaches Survey 2025 finding that over 40 per cent of UK businesses experienced a breach or attack in the past 12 months.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Cyber Security Breaches Survey shows the cyber threat is significant and it is critical businesses leaders take urgent steps to improve their cyber security. That is why the Government wrote to chief executives and chairs of leading UK companies recently asking them to make action on cyber security a top priority.
The Government has developed tools for businesses to protect themselves, including:
The Government is also taking action to protect the economy. The Cyber Security and Resilience Bill, introduced earlier this week, will boost our cyber defences and better protect our essential public services. Next year, we will publish a new National Cyber Action Plan setting out how Government will respond to the cyber threat and work with industry to raise resilience across the economy.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the risks to financial stability arising from increased equity valuations linked to artificial-intelligence companies.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government does not comment on individual market moves.
The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. Their latest Record (October 2025) sets out their views on the financial stability outlook, including their assessment of risks related to artificial-intelligence company valuations.
HM Treasury continues to work closely with the FPC and UK financial regulators to assess risks to financial stability, including those relating to financial markets.
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 potential use of artificial intelligence by mobile networks operators to detect and block number-spoofing scams.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government recognises the threat of number-spoofing scams and thinks artificial intelligence has a key role to play in detecting and preventing telecoms fraud.
We recently published the second Telecoms Fraud Sector Charter with industry where one of the commitments is to share case studies across the sector, including with law enforcement, on where artificial intelligence has disrupted fraud. We will keep our assessment under review as the case studies develop.
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 firms prioritising investment in artificial intelligence systems over recruitment for entry-level roles.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
AI has the potential to transform jobs and the economy. The government is working to ensure the UK is well prepared, so that AI drives growth, productivity and opportunities for workers, businesses, and communities.
Whilst the evidence on the impact of AI on entry-level roles is mixed, we are actively preparing for a range of scenarios and closely monitoring its effects on early-career jobs and skills.
Through TechFirst, we are supporting those entering the workforce by funding innovation in recruitment and career pathways, enabling people to directly benefit from the growth of frontier technology sectors through better paid job opportunities.