Julia Lopez

The Government Internal Audit Agency sits within HM Treasury. The Procurement Review Unit (PRU) sits within Cabinet Office and is responsible for the new oversight powers introduced by the Procurement Act 2023 (PA23) (which commenced on 24 February 2025) which governs the award of public contracts. The PRU has not received a referral to investigate contracts awarded to Public Digital.

8 Suppliers were invited to bid for the work order through Bloom Procurement Services Ltd and all 8 of the suppliers were directly nominated.

DBT Secretary of State made a written statement to Parliament on 2 December.

This deal is the first and only agreement with the US that secures zero percent tariffs on pharmaceutical products – the lowest rate offered to any country. It delivers mitigations on the US’ ‘Most Favoured Nation’ policy and preferential terms for UK medtech exports – helping expand access to innovative treatments for patients and driving crucial investment in the UK.

The Department for Business and Trade remains the lead department for EPD negotiations.

There will be further work to finalise underpinning details.

We have secured the first and only deal with the US that delivers zero percent tariffs on pharmaceutical products – the lowest rate offered to any country.

It delivers mitigations on the US’ ‘Most Favoured Nation’ policy and preferential terms for UK medtech exports – helping expand access to innovative treatments for patients and driving crucial investment in the UK.

The UK and the US have confirmed the headline terms of this deal. Further work to finalise underpinning details is ongoing.

The US has committed to ensuring that access to medicines and launches of new innovative medicines in the UK are not inadvertently impacted by the US’s ‘Most Favoured Nation’ policy, thereby reducing the risk to the UK where the NHS has managed to secure lower prices for medicines.

Further work to finalise underpinning details is ongoing.

In July 2025, the Competition and Markets Authority (CMA) published its final report on the UK cloud market. The key recommendation was for the CMA Board to prioritise commencing investigations under the digital markets regime and to consider designating the two largest providers —Microsoft and AWS — with strategic market status in relation to cloud services. The CMA is independent of Government and any decisions on initiating strategic market status investigations are for the CMA Board.

The Chancellor and Secretary of State wrote on 20 October to the British Business Bank, setting the Bank’s strategic priorities over the next five years. These include an objective to “support our most promising businesses in the Industrial Strategy priority sectors to scale and stay here.”

The letter notes “Through a two-thirds increase in its annual investments, the Bank will crowd in tens of billions of pounds of private capital with a particular focus on ensuring that our most promising scale-up businesses can access the capital they need to realise their ambitions here in the UK.”

The full text is published at https://www.gov.uk/government/publications/statement-of-strategic-priorities-to-the-british-business-bank

On Monday 21 October, the Government published a comprehensive package of analysis on the impact of the Employment Rights Bill. This is available at: http://www.gov.uk/guidance/employment-rights-bill-impact-assessments and provides analysis of the potential sectoral impacts of the Bill, including the retail sector.

Energy prices are a critical factor in the cost and competitiveness of operating AI infrastructure in the UK, but they are one of several key considerations, alongside access to reliable grid capacity, a strong digital services market, a highly developed economy and access to skilled talent. These factors must be considered in the round, as they collectively influence and shape investment decisions.

We are working closely with the Department for Energy Security and Net Zero, the Department for Business and Trade, Ofgem and the National Energy System Operator on energy pricing, to ensure that we can attract sufficient investment in infrastructure and deliver on our ambition of being a global leader in AI.

We are committed to ensuring the UK is the leading adopter of AI in the G7, and the Government will look at how regulation, data and access to finance can support adoption including by working closely with sectoral AI Champions to identify new solutions.

High-quality digital connectivity underpins the UK’s digital capabilities, including the adoption of AI technologies across different sectors of the UK economy. This is why we are futureproofing the UK’s networks, with a target to deliver 99% gigabit broadband coverage by 2032 and an ambition for all populated areas to have access to higher quality standalone 5G coverage by 2030.

The Sovereign AI Fund has not made any public sector datasets accessible for technology firms under MoUs or partnership agreements to date.

We are investing up to £2 billion in public compute infrastructure until 2030. This will deliver a new national supercomputer in Edinburgh and expand our AI Research Resource (AIRR) twentyfold by 2030. The volume of compute capacity at the AIRR’s two supercomputing clusters at the specified points in time was as follows:

July 2024: Neither the Isambard‑AI cluster in Bristol nor the Dawn cluster in Cambridge was fully operational at this point. Isambard‑AI remained under construction. Dawn was not yet publicly operational, although a limited early access environment was available using around 400 Intel AI accelerator chips to support early users and system commissioning.

July 2025: The AIRR was launched and became operational. Isambard‑AI comprised approximately 5,448 NVIDIA AI accelerator chips, forming the UK’s flagship national AI supercomputer. Dawn comprised approximately 1,024 Intel AI accelerator chips, providing complementary AI‑optimised compute capability.

April 2026: Isambard‑AI continued to operate with approximately 5,448 NVIDIA AI accelerator chips, unchanged from launch. Dawn continued to operate with approximately 1,024 Intel AI accelerator chips.

It has not proved possible to respond to the hon. Member in the time available before Prorogation.

The United States is our close ally and tech partner. We continue to have regular discussions with the US administration on science and technology. This includes discussions on future governance and delivery timelines for the joint initiatives under the Tech Prosperity Deal.

Ministers recently hosted senior US counterparts at the Quantum Development Group meeting in London.

The Intellectual Property Office is continuing to analyse responses to its consultation on Standard Essential Patents and will publish its response in due course.

The Government is committed to ensuring its AI partnerships benefit the UK AI ecosystem and support public and private sector capacity, innovation and long-term UK capability. Engagement with international technology companies is critical to bring world leading capabilities, expertise, and infrastructure to the UK.

The MoUs signed in 2025 with international frontier AI companies provide a framework for voluntary collaboration, allowing the Government and its partners to explore areas of mutual interest—such as innovation, safety, and responsible development.

These partnerships sit alongside a wider approach to build a diverse and competitive UK AI ecosystem. The Government is strengthening competition and innovation at home by backing British AI companies through the £500 million Sovereign AI Fund , expanding public compute via the AI Research Resource, and supporting startups and scaleups across the AI value chain.

The Government also works closely with independent competition and regulatory authorities to ensure markets remain open and competitive, with existing competition and procurement frameworks applying to AI partnerships as they do in other sectors.

In July last year, the Competition and Markets Authority’s (CMA) cloud market investigation identified a number of potential competition concerns, including barriers that may limit customer choice and make it harder for businesses to switch or run workloads across competing cloud providers on equivalent terms. The CMA recommended that its Board consider prioritising a future Strategic Market Status (SMS) investigation into cloud services under its new digital markets powers.

The Government is committed to promoting a competitive and innovative digital economy and therefore prioritised the commencement of these powers last year, alongside a clear expectation that they be used to support competition and innovation in digital markets. The CMA is independent of Government, and decisions on which markets to investigate are a matter for its Board alone.

The Government is committed to supporting a competitive and innovative digital economy. In July 2025, the Competition and Markets Authority (CMA) found that certain technical and commercial practices in the cloud market hinder switching and limit effective competition. The CMA recommended its Board prioritise a future Strategic Market Status investigation into cloud competition.

In July last year, the Competition and Markets Authority’s (CMA) cloud market investigation identified a number of potential competition concerns. The CMA recommended that its Board consider prioritising a future Strategic Market Status (SMS) investigation into cloud services under its new digital markets powers.

The Government is committed to promoting a competitive and innovative digital economy and therefore prioritised the commencement of these powers last year, alongside a clear expectation that they be used to support competition and innovation in digital markets. Neither the Secretary of State nor Ministers have discussed future SMS prioritisation decisions with the CMA. The CMA is independent of Government, and decisions on which markets to investigate are a matter for its Board alone.

In July last year, the Competition and Markets Authority’s (CMA) cloud market investigation identified a number of potential competition concerns. The CMA recommended that its Board consider prioritising a future Strategic Market Status (SMS) investigation into cloud services under its new digital markets powers.

The Government is committed to promoting a competitive and innovative digital economy and therefore prioritised the commencement of these powers last year, alongside a clear expectation that they be used to support competition and innovation in digital markets. The CMA is independent of Government, and decisions on which markets to investigate are a matter for its Board alone.

In July last year, the Competition and Markets Authority’s (CMA) cloud market investigation identified a number of potential competition concerns with clear negative impacts for UK businesses, consumers and the public sector.

The CMA recommended that its Board consider prioritising a future Strategic Market Status (SMS) investigation into cloud services under its new digital markets powers. The CMA is independent of Government, and decisions on which markets to investigate are a matter for its Board alone.

UK Research and Innovation’s (UKRI) AI Research and Innovation Strategic Framework, published on 19 February 2026, sets out six priority action areas and associated outcomes to 2031.

UKRI will measure progress through the framework’s delivery plan, which it will publish and update regularly, and through its existing performance framework, including a quarterly, balanced scorecard and annual review. In line with UKRI’s commitment to advance knowledge, improve lives and drive growth, DSIT will work closely with UKRI to ensure that metrics include how the department is contributing to growth, the UK Industrial Strategy and other government priorities. Parliament will be updated through the normal accountability routes, including UKRI’s Annual Report and Accounts, which will be laid in Parliament, and responses to Parliamentary Questions.

Details of central government contracts above £12,000 for procurements commenced before 24 February 2025 are published on Contracts Finder (https://www.gov.uk/contracts-finder).

Contracts procured under the Procurement Act 2023 above £12,000 inc VAT are published on the Central Digital Platform Find a Tender service. This includes a note of the winning supplier. (https://www.find-tender.service.gov.uk/Search).

The UK Government has signed AI-related Memorandums of Understanding with OpenAI, Google DeepMind, NVIDIA, Cohere and Anthropic. All of these firms have significant office presence or headquarters in the UK, and many are expanding here. For example, in February 2025 OpenAI announced it is significantly expanding its presence in London, establishing the city as its largest research hub outside the United States. Google DeepMind is also opening its first automated research lab in the UK this year.

To ensure UK-based AI firms have equitable access to government procurement, DSIT has developed an AI Commercial Strategy. This provides a clear model for sourcing AI solutions, enabling government teams to select the most effective route for each need, while using mechanisms that encourage experimentation and support UK SMEs and startups.

Our Incubator for AI is also working across government to explore how AI can transform public services. Starting with planning and education, these projects combine political backing, government AI engineering capability, the agility of DSIT's commercial innovation hub, and departmental expertise to bring frontier AI into government and redesign services around citizens' needs.

The United States is our close ally and tech partner, and we are committed to ensuring that bond delivers real benefits for hardworking people on both sides of the Atlantic.

As the Prime Minister has stated, we are in daily contact with all the key figures in the US administration. We continue to have regular discussions with the US administration on resuming work on the Technology Prosperity Deal and to shape the emerging technologies of the future. This includes discussions on future governance and delivery timelines for the joint initiatives under the Deal.

The United States is our close ally and tech partner, and we are committed to ensuring that bond delivers real benefits for hardworking people on both sides of the Atlantic.

As the Prime Minister has stated, we are in daily contact with all the key figures in the US administration. We continue to have regular discussions with the US administration on resuming work on the Technology Prosperity Deal and to shape the emerging technologies of the future. This includes discussions on future governance and delivery timelines for the joint initiatives under the Deal.

The United States is our close ally and tech partner, and we are committed to ensuring that bond delivers real benefits for hardworking people on both sides of the Atlantic.

As the Prime Minister has stated, we are in daily contact with all the key figures in the US administration. Alongside Cabinet colleagues, we continue to have regular discussions with the US administration, including on resuming work on the Technology Prosperity Deal and continue shaping the emerging technologies of the future.

The United States is our close ally and tech partner, and we are committed to ensuring that bond delivers real benefits for hardworking people on both sides of the Atlantic.

As the Prime Minister has stated, we are in daily contact with all the key figures in the US administration. Alongside Cabinet colleagues, we continue to have regular discussions with the US administration, including on resuming work on the Technology Prosperity Deal and continue shaping the emerging technologies of the future.

The Secretary of State has regular engagement with relevant colleagues on the UK business environment for life sciences sector, to drive the growth of the sector and support the delivery of the Life Sciences Sector Plan.

The Secretary of State for Science, Innovation and Technology regularly engages with representatives of the life sciences sector. The issue of the application of VAT on medicines supplied free-of-charge via Early Access to Medicines Scheme (EAMS) and other compassionate access schemes has been raised with Ministers.

Application of VAT is determined on a case-by-case basis depending on the nature of the supply. This includes medicines or treatments provided for free under the EAMS.

In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.

As per the commitment made in the Written Ministerial Statement on 21 July 2025, on 15 December 2025 the Department made regulations implementing Sections 61 – 64 of the Product Security and Telecommunications Infrastructure Act 2022 and published its response to the consultation which ran earlier this year.

The regulations will come into force on 7 April 2026.

As per the commitment made in the Written Ministerial Statement on 21 July 2025, on 15 December 2025 the Department made regulations implementing Sections 61 – 64 of the Product Security and Telecommunications Infrastructure Act 2022 and published its response to the consultation which ran earlier this year.

The regulations will come into force on 7 April 2026.