Liz Kendall urges UK public to embrace AI as government makes first £500m fund investment

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The UK technology secretary has urged the country to “make AI work for Britain”, brushing off fears about its impact on jobs and cybersecurity as the government announced its first investment under a £500m sovereign AI fund,Liz Kendall said the UK had to “seize” the opportunity offered by AI despite concerns underlined this month when US startup Anthropic revealed it had developed an AI model that posed a potentially significant cyber threat,Asked how the government makes the case for embracing a technology that could disrupt jobs and now cybersecurity, Kendall said: “We have to seize this to make it work, for Britain, for our jobs, for solving the biggest challenges we face as a world,”Speaking on Thursday as the government unveiled its first investment in a UK company as part of a £500m sovereign AI fund, Kendall acknowledged “people are worried about the risks and what it means for their jobs”, but AI entrepreneurs also believed they can “make it work … they can create jobs”,In January Kendall admitted “some jobs will go” as AI automates certain tasks and roles, but it would also create new employment opportunities.

The government announced on Thursday it had taken an undisclosed shareholding in London-based Callosum, a company that helps different types of computer chips work together efficiently to train and operate AI models.It has also taken a stake in an as-yet-unnamed second business.Six UK companies will also receive access to a network of government-funded supercomputers to help them develop AI models in exchange for “a right of first refusal” to invest in some of those firms.The value of that supercomputer access counts towards the £500m fund.The startups using that extra compute capacity include Prima Mente, which is building “biological foundation models” to tackle diseases like Alzheimer’s; Cursive, a company developing autonomous AI agents founded by Google DeepMind alumni; and Odyssey, which develops ‘world models’, an approach to AI where systems interact with a convincing simulation of the real world.

Rachel Reeves, the chancellor, said that by supporting national AI champions, the UK could ensure that internationally competitive companies can “start, scale and stay here in Britain”,The sovereign AI unit, designed to act like a venture capital fund, was launched officially on Thursday at the London offices of Wayve, a self-driving car startup now worth $8,6bn (£6,4bn),Danyal Akarca, co-founder of Callosum, said the UK was the “natural place” to build his company due to its strong university talent and private AI labs like DeepMind.

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Olly Robbins and Mandelson’s vetting: what did he do, why – and who knew?

Fiddling with his reading glasses, the then cabinet secretary, Sir Chris Wormald – sitting alongside the most senior civil servant in the Foreign Office, Sir Olly Robbins – suddenly appeared a little tense.The bonhomie evident in earlier answers had quite disappeared.It was 3 November 2025, and Peter Mandelson had been removed from his post as ambassador to the US two months earlier, after the disclosure of Jeffrey Epstein’s emails.MPs on the cross-party foreign affairs select committee were grilling the most senior civil servants involved in Mandelson’s appointment about the vetting and due diligence.Just over an hour in, Fleur Anderson, the MP for Putney, asked what can now be seen as a crucial question about the process: “In general, what is the end product of all that vetting? Does it all get put into one report? Who receives that report?”“The report is received by the employing department and employing line manager – in this case, that would be Sir Oliver,” Wormald responded, looking to his left towards Robbins

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Five unanswered questions on Keir Starmer’s Mandelson debacle

Downing Street has tried to do a lot of explaining, as has Keir Starmer himself. But there are still plenty of things we do not know about how Peter Mandelson failed security vetting, and what the prime minister did or did not know about it.A fairly key question. Downing Street is clear: it is “staggering” that Mandelson failed vetting, and that the Foreign Office not only overruled this but told no one in No 10.However, Ciaran Martin, a former top civil servant with past involvement in vetting work – and a close friend of the ousted Olly Robbins – said this was an oversimplification

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‘Almost like a Bond villain’: why Labour MPs expect Starmer to cling on as PM

It still feels improbable that the UK prime minister, Keir Starmer, will face a formal challenge even if, as assumed, his Labour party performs disastrously in next month’s local elections. But for many of his MPs, the latest revelations about Peter Mandelson have emphasised that the question is simply one of when, not if.“It does seems incredible that he didn’t know, but the problem is that it’s quite possible as well,” was the summary of one backbencher, in response to No 10’s insistence that no one had told the prime minister that his pick to be the UK ambassador to Washington had failed his security vetting.Some MPs believe the Mandelson vetting fiasco could be terminally damaging for a prime minister who, as one said, had painted himself as “whiter than white”. “I can’t see how he survives this,” one said

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Starmer says it is ‘staggering’ and ‘unforgivable’ he was not told Mandelson failed vetting – as it happened

The prime minister has spoken to reporters in Paris this morning, saying it is “unforgivable” and “staggering” he wasn’t told Peter Mandelson was denied security clearance.He said:double quotation markThat I wasn’t told that he’d failed security vetting when I was telling parliament that due process had been followed is unforgivable.Not only was I not told, no minister was told and I’m absolutely furious about it.Keir Starmer added:double quotation markIt is totally unacceptable that the prime minister making an appointment is not told that security vetting has been failed.He added he will “set out all the relevant facts in true transparency” to parliament on Monday

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Peter Mandelson’s failed security vetting: a timeline of the controversy

Keir Starmer is facing calls to resign after the Guardian revealed that Peter Mandelson failed the developed vetting process over his appointment as US ambassador – but was able to take up the post after the Foreign Office overruled the recommendation.Here is the timeline of Mandelson’s controversial appointment and the fallout it has caused.Labour wins a landslide election victory engineered by Mandelson’s protege Morgan McSweeney, of whom Mandelson once said: “I don’t know who and how and when he was invented. But whoever it was, they will find their place in heaven.” Mandelson said the election win was “an extraordinary achievement for Keir Starmer and his team”

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More than half of Britons support rejoining EU 10 years on from Brexit vote

Support for rejoining the EU rather than simply rejoining the single market is growing among British voters, with more than 80% of Labour, Liberal Democrat and Green party supporters favouring this option, according to research mapping voter attitudes 10 years after the Brexit referendum.Labour’s “muted” approach to the issue means it risks losing support among progressive voters and in “red wall” constituencies, experts have said as part of research by Best for Britain.While 61% of all voters supported the government’s current approach to EU relations, only 19% did so “strongly”, the research showed.A full return to the EU was supported by 53% of all voters with support at 83% among Labour voters, 84% Liberal Democrat and 82% Green, the polling found.Of Conservative and Reform voters, 39% and 18% backed the policy respectively, Best for Britain found