What does Rishi Sunak’s reshuffle mean for life sciences and tech investors in the UK?

This week, the UK’s prime minister broke up the often redesigned Department for Business, Energy and Industrial Strategy (BEIS). BEIS has been an issue for a number of prime ministers, with Theresa May reforming it as recently as 2016. In its place there are now four new departments, each with a more focused brief.

Most relevant to life sciences and tech investors is the new Department for Science, Innovation and Technology (DSIT). We have previously noted the Government’s desire to become a ‘science superpower’, and this move is clearly part of that effort. The stated aim of the department is supporting innovation and translational science to have real world benefits.

An important aspect of realising the Government’s aim involves the regulation (or de-regulation, according to some commentators) of personal data. Until last week the Department for Culture, Media and Sport was responsible for reforming the UK GDPR, as well as wider digital and data policy. DIST now takes on that portfolio, one that is not without its challenges.

Reforms to the UK’s data protection regime currently seem to be on pause, while the Online Safety Bill – which includes a recent proposal of criminal liability for tech executives whose platforms don’t protect children from harmful content – also falls within the remit for DIST civil servants. Those hoping for a peaceful parliamentary term to ease them into their new department are likely to be disappointed.

While many will praise the increased focus on the life sciences sector, it also comes at a time when the Government is under scrutiny. We have previously noted the critique of the Government’s reforms to R&D tax credit, whether enough is being done to support the development of lab space in the Golden Triangle, facilitating the use of patient data as well as harmonisation efforts between the UK and EU in areas such as clinical trials and medical devices.

Another new ministry is the Department for Energy Security and Net Zero. Through this, the Government is trying to address the fallout of Russia’s invasion of Ukraine, as well as promoting its green agenda. As with R&D and innovation, the Labour Party has also made clean energy security a key focus for the next election.

In general, there have been a number of political commentators who have likened the reorganisation to rearranging deck chairs on the Titanic. It remains to be seen whether the prime minister can put these changes into practical application before the general election expected next year. However, it signals a clear intent by Rishi Sunak to position the UK as an innovative, science and tech driven economy. This is an aim shared by the opposition Labour Party, and so the rhetoric at least looks set to continue to be positive for investors in the UK.