Technology Sovereignty

Kanishka Narayan Excerpts

Tuesday 10th March 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Kanishka Narayan)]

It is such a pleasure to serve under you in the Chair, Ms Vaz. I thank my hon. Friend the Member for Newcastle upon Tyne Central and West (Dame Chi Onwurah), the Chair of the Science, Innovation and Technology Committee, for securing this debate and bringing to it her deep expertise across engineering, policymaking and leadership in the House on the question of tech sovereignty. I also thank all hon. Members for making very thoughtful points and bringing to the debate a range of experiences—as well as swiftness of speech, given the constraints imposed by time today.

I have long felt that the central question in our politics and for our country is the future of technology in this country. It will be the major driver of prosperity and dignity for people, and the central question is whether Britain gets to shape it or is shaped by it. In Westminster, we sometimes talk about technology sovereignty as an abstract geopolitical goal, but we have to keep in mind that, ultimately, it is the basis for our NHS radiologists to have access to the best tools for detecting cancer, with data here in the UK; for British founders and builders to be able to train and deploy models, rather than depending on foreign APIs and pricing; and for people in their homes and workplaces across the country to know that their everyday AI systems are governed transparently and democratically here in the UK.

My view is that technology sovereignty is a state’s ability to have strategic leverage when it comes to a technology, such that it can ensure ongoing access to critical inputs and ongoing assurance that its wider economic and national security objectives can be met more broadly. It is to take the best tools the world has to offer today, but also to shape the rest, and ultimately to make that which is critical here in Britain.

As I think of it, that strategic leverage is obtained by three steps on a ladder. The first is just to have enough of the critical inputs. Taking AI as an example, we have to have enough chips today to be able to do anything with AI in the first instance. With that in mind, the Government have always been very keen to secure the level of capital investment that means that Britain is at least at the table with critical inputs.

Once we are at the table, the second part of sovereignty is to make sure that we have some diversification in who we procure critical inputs from so that we can bargain effectively. We are the party of labour; we understand that who has power matters as much as what the powers are. In that context, one of the first things I did in my role was to engage with a series of companies in every part of the stack so that we were able to build more diversity into the landscape.

The third rung of the ladder is, ultimately, to build British in order to make sure that we have the full-fat version of sovereign capability here in critical parts of the stack.

[Dame Chi Onwurah]

I thank the Minister for setting out his sovereignty stack. Just as an example, is an LLM a critical input or another level in the stack—and does it need to be British?

[Kanishka Narayan]

I valued my hon. Friend’s earlier point that sovereignty has to be seen in the round. We cannot make everything here; we have to look at the entire bundle that we have to offer. In the context of LLMs, there is some uncertainty as to whether all the capability will ultimately accrue in closed proprietary models, or whether open-source, open-weight models might be part of it. To me, as things stand today, it is a pretty important part of the stack. The question then is whether we have enough of it to be able to make the most of it by adopting it for economic and national security usage here, or whether there are aspects in which, at least from a distillation or small-model point of view, we need to develop some capabilities here as well. I do not think there is a binary answer to the overarching question; the answer is much more nuanced. I am happy to discuss that further if it is of interest.

As I said, the third rung of the ladder is, ultimately, to build British and focus on areas in which we can develop our strengths. I have to point out that we made sure that Nscale, one of our neocloud hyperscale providers, was an important part of the supply chain for AI growth zones. I noticed that yesterday Nscale raised the largest ever series-C funding in Europe, in part as a result of the Government’s support and convening in that context. Arm, the leading chip design company globally, is still headquartered in Cambridge, and we have fantastic companies in the AI inference chip part of the stack, Fractile and Olix being two of them. It is an area that I spend a lot of my time on.

When it comes to models, we have huge strengths, not just because a number of the Gemini teams and researchers continue to sit in King’s Cross at DeepMind, but because companies developing foundation models in AI for science and autonomous vehicles, embodied AI, and aspects of world models and computer vision reside here in the UK. Wayve raised £1.5 billion just this year, the largest funding round in Europe to date for that stage. It is a fantastic company that looks in particular at embodied AI and vision. I am proud of those companies. It is right that the Government are supporting them through the lens of tech sovereignty, as that is what both Britain’s and the companies’ best interests dictate.

The sovereign AI unit will be crucial to that. I am glad to see the level of interest in that across the House. It will concentrate efforts on priority areas. There was interest in my specifying those areas. The four areas that are of interest at the outset are novel compute, in particular focusing on the inference chip part of the stack; novel model architecture; AI for science—I point hon. Members to the AI for science strategy published by the Department three or four months ago, which set out particular areas of focus and priority—and embodied AI.

To give a concrete example of early action that the sovereign AI unit has taken, we have already invested £8 million in the OpenBind consortium to accelerate AI-driven drug discovery, and £5 million in the Encode: AI for Science fellowship to support the next generation of world-class talent. The focus of the unit will be on both capital and compute, to incrementally anchor more and more British companies here, but I know that the unit will only be part of the solution. We have a role to look at innovation and market support much more broadly across the tech landscape.

In November, we also announced a significant advance market commitment—a deeply innovative procurement shift—which meant that up to £100 million in Government funding was available to buy products from promising UK chip companies once they reach a high-performance benchmark. That presents UK start-ups with an exciting opportunity to grow and compete right here, building for the world.

AI is of course just one area of Britain’s flourishing tech ecosystem. I point out to my hon. Friends the Members for Milton Keynes Central (Emily Darlington) and for Lichfield (Dave Robertson), who made important points about quantum, that the Government have doubled the rate of investment in quantum, with about £1 billion committed over the next four years. The points on helium made by my hon. Friend the Member for Lichfield have very much been taken into account. The Government are looking at the developing situation on helium supply in the middle east, which is of concern.

Through our national programme, we broadly want to anchor development and access to technological capabilities that are most important to economic growth and national security. That means, in the context of quantum, more companies starting, growing and staying here and, in the context of AI, not just developing capabilities in particular parts of the stack, but in part looking upstream for skills as well.

In that context, I agree totally with my hon. Friends the Members for Cambridge (Daniel Zeichner) and for Southend East and Rochford (Mr Alaba) that the quality and scale of our talent and skills in our universities and schools is the single biggest determinant of where we end up. I am happy to write to my hon. Friend the Member for Cambridge about the UKRI changes that we are making. In answer to my hon. Friend the Member for Southend East and Rochford, IP capitalisation is a deeply important part of what I focus on with the Intellectual Property Office, and I am happy to engage him on the question of Essex University in particular.

[Ben Lake (Ceredigion Preseli) (PC)]

The Minister knows that the Computer Misuse Act 1990 criminalises a lot of legitimate cyber-resilience and vulnerability research. I think that the Government are minded to introduce a statutory defence for such research, but can he share whether that defence will be introduced as part of the cyber Bill?

[Kanishka Narayan]

The hon. Member is absolutely right to raise that point about a defence for cyber-security purposes. The Computer Misuse Act is being reviewed at the moment—the Home Office is looking at it—but, as I mentioned in Committee on the Cyber Security and Resilience (Network and Information Systems) Bill, that is not the appropriate vehicle, given its much narrower scope than the broad scope that we would like in the context of a defence. For those reasons, I am keen that we pursue the matter, but elsewhere.

I am conscious of time, so I will proceed at pace. Alongside quantum and AI, semiconductors are another technology that underpins the global economy and is fundamental to our way of life. As part of our industrial strategy, digital and technology sector plan, we are taking measures to foster the growth of that particular sector.

My hon. Friend the Member for Mansfield (Steve Yemm) spoke very thoughtfully about the fact that we should not just rely on venture-focused companies in particular parts of the country, but look at our industrial heritage. That is exactly why I have focused on ensuring that the AI growth zones programme puts data centres in the north-east, alongside the headquarters of our largest listed tech company. A deep heritage of financial services technology innovation in Newcastle and the surrounding area is now able to benefit from good jobs anchored by that data centre.

In south Wales, the data centre planned for the site of the old Ford car manufacturing plant gives hope for jobs in the semiconductor cluster, anchored by that data centre. That is critical. In north Wales, data centres are pulling our nuclear small modular reactor into the future, which is critical to thousands of jobs in that community. In Lanarkshire, the old steelworking community, which lost thousands of jobs and never fully recovered, now has hope from half a billion pounds of community investment as a result of data centres. That is precisely what I believe in.

[Anneliese Dodds]

In one sentence, will the Minister say something about another geographical issue: collaboration with like-minded countries, especially in the EU?

[Kanishka Narayan]

I will simply give a note of total affirmation on the importance of that. Having met a series of Ministers from Europe, I know that we have a huge amount in common and a huge amount to do in the future.

I am being tested pretty intensively on time, so I will focus on one final point. Some Members rightly raised the question of mergers, acquisitions and investment controls. As my hon. Friend the Chair of the Select Committee will know from the time that I worked for her on the Bill as it was proceeding through the House, the National Security and Investment Act 2021 is an excellent example of where we are ensuring that investment and sensitive areas maintain the national security interests of Britain now and in the longer term.

In summary, the Government will continue to support our tech sectors as best they can. Only yesterday, Nscale raised the largest series-C funding round in all of Europe. Isambard-AI has raised a £50 million round for embodied AI—manufacturing AI—as well. Those are testaments to the approach that I have set out, which will ensure that British firms and people can seize every opportunity they can in tech-enabled Britain.