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To ask His Majesty's Government what proportion of annual central government expenditure on Microsoft products relates to software licensing, including Microsoft 365, Windows Server and SQL Server.
To ask His Majesty's Government what proportion of annual central government expenditure on Microsoft products relates to software licensing, including Microsoft 365, Windows Server and SQL Server.
Information on the specific proportion of annual central government expenditure on Microsoft products allocated to software licensing is not held centrally.
To ask His Majesty's Government what estimate they have made of total annual public sector expenditure on Microsoft software licences, cloud services and related support contracts across central government; and what assessment they have made of the impact of competition in software and cloud markets on value for money for...
To ask His Majesty's Government what estimate they have made of total annual public sector expenditure on Microsoft software licences, cloud services and related support contracts across central government; and what assessment they have made of the impact of competition in software and cloud markets on value for money for...
Information on total annual public sector expenditure on Microsoft software licences, cloud services and related support contracts is not held centrally. Responsibility for IT procurement is devolved to individual contracting authorities, which are responsible for determining their operational requirements and managing their own commercial arrangements.
In support of value for money, the Government Commercial Agency manages the Strategic Partnership Arrangement 2024 with Microsoft. This Memorandum of Understanding is designed to enable the public sector to benefit from government-wide scale in securing preferential pricing, while requiring individual customers to undertake compliant procurement processes and appropriate market testing for specific procurements.
The Government recognises the importance of effective competition in software and cloud markets in supporting value for money for taxpayers. It therefore seeks to maintain competitive tension and to reduce dependency on any single supplier by promoting a diverse technology estate across a range of cloud and software providers. The Cabinet Office also keeps under review relevant market investigations undertaken by the Competition and Markets Authority to help ensure that public sector digital procurement remains open and competitive.
To ask His Majesty's Government what assessment they have made of the Competition and Markets Authority opening a Strategic Market Status investigation, under the Digital Markets, Competition and Consumers Act 2024, into Amazon's retail marketplace and its sponsored product and retail media advertising activities.
To ask His Majesty's Government what assessment they have made of the Competition and Markets Authority opening a Strategic Market Status investigation, under the Digital Markets, Competition and Consumers Act 2024, into Amazon's retail marketplace and its sponsored product and retail media advertising activities.
The Competition and Markets Authority (CMA) is the UK's independent competition authority responsible for operating the digital markets regime. The Government does not conduct its own assessment of individual CMA investigations. Decisions on investigations, designations and interventions under the regime are a matter for the CMA.
My Lords, I declare an interest as a consultant to DLA Piper on AI regulation and policy. Just two weeks ago, the Government resisted a proposal from Members right across this House to introduce an AI kill switch into cyber legislation on the grounds that the Government were “technology agnostic”. How agnostic does the Minister feel today?
My Lords, I declare an interest as a consultant to DLA Piper on AI regulation and policy. Just two weeks ago, the Government resisted a proposal from Members right across this House to introduce an AI kill switch into cyber legislation on the grounds that the Government were “technology agnostic”. How agnostic does the Minister feel today?
I presume that the noble Lord is referring to the amendment tabled to the Cyber Security and Resilience (Network and information Systems) Bill. One of the things that we have done is
introduce the Bill and the guidance to work through that. I know that my noble friend Lady Lloyd will be happy to talk further with the noble Lord about this. One of the issues with a kill switch is that it would be impossible for Britain simply to turn AI off. Another issue is the extent of people’s concerns about whether a kill switch could or would work, but I know my noble friend Lady Lloyd would be delighted to speak further to the noble Lord.
My Lords, we welcome the return of data protection to DCMS. The Government’s own Data (Use and Access) Act replaced the “essentially equivalent” test for adequacy for international data transfers with a lower threshold of “not materially lower”. Does the Minister accept that this weaker standard leaves UK citizens’ data more exposed to the gaps in foreign countries’ protections? What monitoring of that effect are the Government carrying out to safeguard real UK sovereignty over our data?
My Lords, we welcome the return of data protection to DCMS. The Government’s own Data (Use and Access) Act replaced the “essentially equivalent” test for adequacy for international data transfers with a lower threshold of “not materially lower”. Does the Minister accept that this weaker standard leaves UK citizens’ data more exposed to the gaps in foreign countries’ protections? What monitoring of that effect are the Government carrying out to safeguard real UK sovereignty over our data?
Our priority is the protection of UK citizens’ personal data, and we will monitor our adequacy decisions with this in mind. The DCMS has a statutory duty to monitor all our data adequacy decisions and a duty to amend or revoke them if the Secretary of State becomes aware that the standard has fallen below that of the UK GDPR. Officials are monitoring all existing adequacy decisions on an ongoing basis and the DCMS Secretary of State must be satisfied that the level of data protection afforded to UK data subjects in a given country or territory is not materially lower than that of the UK GDPR.
To ask His Majesty's Government when the fifth round of the Regulators' Pioneer Fund is expected to open; and whether it will confirm whether past winners remain eligible to apply with a materially different follow-on proposal.
To ask His Majesty's Government when the fifth round of the Regulators' Pioneer Fund is expected to open; and whether it will confirm whether past winners remain eligible to apply with a materially different follow-on proposal.
The Regulators’ Pioneer Fund (RPF), delivered by the Regulatory Innovation Office (RIO), supports regulators and local authorities to develop and test innovative regulatory approaches that help accelerate innovation across a range of sectors and regions of the UK. In October 2025, the RIO awarded up to £7.9 million to 14 regulator and local authority-led projects through the fourth round of the Fund. These projects are due to conclude by the end of the 2026.
At London Tech Week in June 2026, the Government announced that the RIO would allocate approximately £70 million to regulatory innovation funding over the current spending review period. RIO is now developing the funding mechanisms, delivery model and supporting processes needed to deploy this funding effectively and maximise its impact.
To ask His Majesty's Government why no full impact assessment was prepared for the revised Telecommunications Security Code of Practice 2026.
To ask His Majesty's Government why no full impact assessment was prepared for the revised Telecommunications Security Code of Practice 2026.
The Telecommunications Security Code of Practice provides technical guidance for public telecoms providers on how they can comply with their security requirements as set out in the Telecommunications (Security) Act 2021 and the Electronic Communications (Security Measures) Regulations 2022.
A full impact assessment was carried out for the telecoms security framework when it came into effect in 2022. The estimated cost of the framework on Tier 1 and Tier 2 public telecoms providers was assessed in the frameworks impact assessment (The Electronic Communications (Security Measures) Regulations 2022).
A full Regulatory Impact Assessment was not prepared for the revised Code of Practice. The revised Code provides additional guidance on how public telecommunications providers may demonstrate compliance with existing statutory security duties under the Act. The updates to the Code do not introduce new statutory duties or regulatory requirements and do not constitute a regulatory provision under the Better Regulation Framework.
An assessment on the costs to industry of the proposed updates to the Code was carried out, details of which are included in the explanatory memorandum. Indicative estimates suggest potential one-off implementation costs in the order of £1.9 million to £3.2 million per provider, with ongoing annual costs of approximately £285,000 to £445,000 per provider. When considered in the context of the scale and revenues of the UK telecommunications sector, the Government considers these costs to be relatively minor.
Lords private notice question on what assessment they have made of the abolition of the Department for Science, Innovation and Technology and the merging of its functions with other departments and; the implications of this on the future operation of (1) the AI Safety Institute, (2) the Sovereign AI Fund, (3) the Government Digital Service and (4) UK Research and Innovation.
Lords private notice question on what assessment they have made of the abolition of the Department for Science, Innovation and Technology and the merging of its functions with other departments and; the implications of this on the future operation of (1) the AI Safety Institute, (2) the Sovereign AI Fund,...
To ask His Majesty's Government when will the first AI Assurance Innovation Fund awards be announced; and what the typical award size will be.
To ask His Majesty's Government when will the first AI Assurance Innovation Fund awards be announced; and what the typical award size will be.
To ask His Majesty's Government what industry submissions on cost were received during the consultation on the revised Telecommunications Security Code of Practice 2026; and whether they will publish that underlying data.
To ask His Majesty's Government what industry submissions on cost were received during the consultation on the revised Telecommunications Security Code of Practice 2026; and whether they will publish that underlying data.
The Telecommunications Security Code of Practice provides technical guidance for public telecoms providers on how they can comply with their security requirements as set out in the Telecommunications (Security) Act 2021 and the Electronic Communications (Security Measures) Regulations 2022.
The government is committed to continuously evaluating the effectiveness of the UK’s telecoms security framework, and the Draft Revised Code of Practice strengthens security guidance to public telecoms providers to reflect evolving technology and emerging security threats.
The government ran a consultation on proposed updates to the Telecommunications Security Code of Practice 2022 from 28 August 2025 to 22 October 2025, and an additional cost survey which ran from 25 November 2025 until 28 January 2026.
Cost related feedback received from the consultation, and the additional cost survey, informed the resulting assessment on costs to industry included in the explanatory memorandum for the Draft Revised Code of Practice, published on GOV.UK on 3 June.
Indicative estimates suggest potential one-off implementation costs of the proposed updates to the Code being in the order of £1.9 million to £3.2 million per provider. Estimates for the ongoing annual costs are approximately £285,000 to £445,000 per provider. The Government considers these costs to be relatively minor, given the critical importance of good security and the current scale and revenues of the UK telecommunications sector.
Underlying cost data from individual providers has not been published, to protect commercial confidentiality and mitigate the risk of exposing vulnerabilities in UK telecoms networks.
My Lords, I declare an interest as a consultant to DLA Piper on AI policy and regulation. The EU’s Cloud and AI Development Act will set out a framework with sovereignty criteria for public sector procurement. The Government’s AI hardware plan, mentioned by the Minister, is welcome, but it contains no equivalent procurement-linked sovereignty framework. Given that the Government’s public procurement overwhelmingly relies on US hyperscalers, can the Minister commit to introducing a UK AI sovereignty assurance framework to ensure that public sector services and critical national infrastructure are nationally resilient?
My Lords, I declare an interest as a consultant to DLA Piper on AI policy and regulation. The EU’s Cloud and AI Development Act will set out a framework with sovereignty criteria for public sector procurement. The Government’s AI hardware plan, mentioned by the Minister, is welcome, but it contains no equivalent procurement-linked sovereignty framework. Given that the Government’s public procurement overwhelmingly relies on US hyperscalers, can the Minister commit to introducing a UK AI sovereignty assurance framework to ensure that public sector services and critical national infrastructure are nationally resilient?
The Government have already set out their intention to use public sector buying power more strategically. The January 2025 blueprint for modern digital government noted that public sector organisations often contract locally and individually, limiting the impact of the £26 billion of annual technology spend, and committed to continue working on whole of public sector agreements. We are also developing the national cloud infrastructure programme, a strategic initiative to co-ordinate how the public sector buys cloud services. This programme will use the collective buying power of the whole of the public sector to secure better value for taxpayers, strengthen digital resilience and create new opportunities for British businesses.
To ask His Majesty’s Government what assessment they have made of the EU’s technological sovereignty package; and what plans they have to introduce equivalent instruments to protect and promote the UK’s artificial intelligence capabilities.
To ask His Majesty’s Government what assessment they have made of the EU’s technological sovereignty package; and what plans they have to introduce equivalent instruments to protect and promote the UK’s artificial intelligence capabilities.
We have undertaken an initial assessment and are working through a detailed assessment of the EU’s technological sovereignty package. This includes proposals on CADA and chips. Our current assessment is that the package presents both opportunities and risks to UK industry. We will continue to engage with industry and European partners as proposals evolve. For the UK, AI sovereignty means reducing overdependencies, strengthening resilience and backing British capability, including through the £1.1 billion AI hardware plan and our sovereign AI fund.
To ask His Majesty's Government what assessment they have made of the report by the Social Market Foundation, Clearing the Air, published on 3 July 2024, which suggested that restrictive software licensing practices may cost the UK public sector £60 million a year.
To ask His Majesty's Government what assessment they have made of the report by the Social Market Foundation, Clearing the Air, published on 3 July 2024, which suggested that restrictive software licensing practices may cost the UK public sector £60 million a year.
While HMG has not issued a formal, comprehensive assessment of the Social Market Foundation's July 2024 report, Clearing the Air, its findings remain highly pertinent to ongoing digital market regulatory efforts.
This report was submitted as evidence to the Competition and Markets Authority (CMA) to support its in-depth investigation into competition within the UK's public cloud infrastructure services market. These insights are currently being reviewed to help shape future public sector commercial practices and guidance.
Furthermore, public sector procurement continues to align with the Digital, Data and Technology (DDaT) Playbook. The playbook establishes essential policy reforms aimed at safeguarding against vendor lock-in and maximizing value for money.
My Lords, I declare an interest as an adviser to DLA Piper on AI regulation and policy. The Government followed Australia in its approach to access to social media for under-16s. Will they do the same with AI, now that Australia will be adopting mandatory standards for AI, as nine in 10 of the British public clearly want?
My Lords, I declare an interest as an adviser to DLA Piper on AI regulation and policy. The Government followed Australia in its approach to access to social media for under-16s. Will they do the same with AI, now that Australia will be adopting mandatory standards for AI, as nine in 10 of the British public clearly want?
The UK’s approach is to develop our sovereign capabilities. We are investing in infrastructure and in AI growth zones. We are working to ensure that everyone in this country benefits from the potential of AI and are upskilling 10 million workers. In respect of the regulatory environment, AI can be adopted in many different areas: it can advance drug discovery, or it can support teachers in classrooms so that they have more face-to-face time with pupils. It is right to take a context-specific regulatory approach.
To ask His Majesty's Government whether the Cabinet Office will be providing evidence on Microsoft licensing practices and other related matters to the Competition and Markets Authority for its Strategic Market Status investigation into Microsoft’s business software ecosystem.
To ask His Majesty's Government whether the Cabinet Office will be providing evidence on Microsoft licensing practices and other related matters to the Competition and Markets Authority for its Strategic Market Status investigation into Microsoft’s business software ecosystem.
The Competition and Markets Authority (CMA) is responsible for gathering evidence relevant to its Strategic Market Status investigations and engages with a wide range of stakeholders. Government departments will assist the CMA as far as possible where the CMA requests that they do so, including providing evidence to the CMA where appropriate.
To ask His Majesty's Government whether they will advise the Competition and Markets Authority to publish a public roadmap for the Strategic Market Status investigation into Microsoft’s business software ecosystem; and what steps they are taking to ensure that the investigation is delivered at pace.
To ask His Majesty's Government whether they will advise the Competition and Markets Authority to publish a public roadmap for the Strategic Market Status investigation into Microsoft’s business software ecosystem; and what steps they are taking to ensure that the investigation is delivered at pace.
The Competition and Markets Authority is responsible for operating the digital markets regime. The length of Strategic Market Status investigations can vary due to a number of factors but must be completed within the statutory time limits imposed by the Digital Markets, Competition and Consumers Act 2025. The CMA has stated its intention to publish a roadmap.
To ask His Majesty's Government what steps they are taking to ensure the Competition and Markets Authority develops potential conduct requirements in parallel with the Strategic Market Status investigation, to ensure remedies for anti-competitive licensing are implemented immediately upon any designation.
To ask His Majesty's Government what steps they are taking to ensure the Competition and Markets Authority develops potential conduct requirements in parallel with the Strategic Market Status investigation, to ensure remedies for anti-competitive licensing are implemented immediately upon any designation.
The Competition and Markets Authority is responsible for operating the digital markets regime, including when to implement any conduct requirements. The Digital Markets, Competition and Consumers Act 2024 does not prevent the CMA from designing remedies in parallel with Strategic Market Status investigations.
To ask His Majesty's Government, further to the Competition and Markets Authority’s Strategic Market Status investigation into Microsoft’s business software ecosystem, what assessment they have made of (1) the extent to which software licensing restrictions and cloud lock-in may influence public sector choice of enterprise AI tools, and (2) any...
To ask His Majesty's Government, further to the Competition and Markets Authority’s Strategic Market Status investigation into Microsoft’s business software ecosystem, what assessment they have made of (1) the extent to which software licensing restrictions and cloud lock-in may influence public sector choice of enterprise AI tools, and (2) any...
The CMA expects to publish its final decision report on the Strategic Market Status investigation into Microsoft’s business software by February 2027. The CMA has already taken action in the cloud market outside of the investigation and secured voluntary commitments from Amazon and Microsoft, which will improve interoperability, reduce data egress fees and make switching easier in cloud services.
To ask His Majesty's Government whether the Cabinet Office will ensure other departments that are Microsoft IT customers will supply evidence on Microsoft licensing practices and other related matters to the Competition and Markets Authority for its Strategic Market Status investigation into Microsoft’s business software ecosystem.
To ask His Majesty's Government whether the Cabinet Office will ensure other departments that are Microsoft IT customers will supply evidence on Microsoft licensing practices and other related matters to the Competition and Markets Authority for its Strategic Market Status investigation into Microsoft’s business software ecosystem.
The Competition and Markets Authority’s (CMA) investigations are conducted independently under its own statutory powers. Individual government departments are responsible for responding directly to the CMA’s information requests.
The Cabinet Office continues to facilitate engagement with the investigation by raising awareness and encouraging departments to participate through existing Government Commercial Function (GCF) and Department for Science, Innovation and Technology (DSIT) communication channels.
The CMA expects to publish provisional findings in late 2026, triggering a public consultation. Departments will then be encouraged to review these findings and submit evidence on the potential impact of proposed remedies on government digital projects.
My Lords, the Milburn interim report, Young People and Work, found that a growing share of entry-level roles are now filtered by algorithmic screening before a human has even seen an application. Given that NEET numbers are shockingly high, what specific assessment have the Government made of the extent to which AI-driven recruitment tools are narrowing rather than widening life chances for these young people? Will the Minister commit to mandatory algorithmic impact assessments, as suggested by the TUC, for recruitment algorithms so that employers and platforms are required to test for bias before these tools are deployed at scale?
My Lords, the Milburn interim report, Young People and Work, found that a growing share of entry-level roles are now filtered by algorithmic screening before a human has even seen an application. Given that NEET numbers are shockingly high, what specific assessment have the Government made of the extent to which AI-driven recruitment tools are narrowing rather than widening life chances for these young people? Will the Minister commit to mandatory algorithmic impact assessments, as suggested by the TUC, for recruitment algorithms so that employers and platforms are required to test for bias before these tools are deployed at scale?
The Government previously set out guidance on recruitment in the age of AI. The new future of work unit will look at what is developing in the labour market and at whether guidance such as that needs updating and in what respect. In the meantime, we are supporting young people, through our youth guarantee and through provision of early training opportunities for them, so that they can get into work now and continue to advance through their careers.