UK AI Push: Minister Kendall Backs Support for Homegrown AI Companies

UK Science and Technology Secretary Liz Kendall announced in July 2026 that the government would support AI development, calling for funding for British AI companies and the legalization of self-driving cars before competitors pull ahead of the country.

What did Kendall propose for British AI?

Speaking on the Sifted podcast, Kendall made a blunt argument: the UK must back its own AI companies before others do, meaning it should act ahead of the curve rather than play catch-up. The minister named self-driving transport as a specific area where Britain risks losing ground.

The message fits into a long-running debate over industrial policy in the AI sector. British tech companies have repeatedly pointed out that they trail their American and Chinese rivals in the volume of state funding and the speed of regulatory procedures. Kendall apparently wants to break that inertia.

Why is Burnham's team taking a different view?

Andy Burnham, the mayor of Greater Manchester and one of the most likely candidates for Labour leader, takes a more cautious position on several of Kendall's technology initiatives. The split between the two camps matters: if Burnham takes over the party and comes to power, AI policy priorities in London could change radically.

Self-driving cars are a particularly sensitive topic. Every serious incident involving autonomous vehicles instantly becomes a political issue. For a regional politician who answers to voters for road safety, backing driverless cars without reservation means taking on electoral risk. That is probably what lies behind the skepticism of Burnham's team.

What lies behind the threat to the minister's post?

According to media reports, Liz Kendall's post is under threat amid possible reshuffles in the Labour Party leadership and the cabinet. The context matters: publicly defending AI companies and self-driving transport during political instability can be read both as a sincere position and as an attempt to build a political legacy.

In Westminster, public positioning on the eve of a possible departure is a long-standing practice. Kendall's words are being taken as a programmatic document: either for a future campaign for the party leadership, or as the farewell manifesto of a sitting technology minister.

What this means

The row over Kendall's statements exposes a structural tension in British technology policy: support for the AI sector is declared in rhetoric, but the political will for concrete measures, such as funding startups, speeding up regulation of self-driving vehicles and prioritizing domestic companies, remains a matter of sharp disagreement. Which course London takes will depend in part on the balance of power inside Labour after possible leadership reshuffles.

What government measures to support AI did Kendall propose?

Funding for British AI companies and the legalization of self-driving cars.