A government commissioned red teaming exercise has found that One Login, the UK’s flagship digital identity platform, can be compromised without triggering any alerts.

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The UK government is consulting on plans to ban ransomware payments by public sector bodies and critical national infrastructure to disrupt the financial model underpinning cybercrime.  

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Speech

The UK government has unveiled a transformative plan to harness artificial intelligence (AI) as the cornerstone of a decade long national renewal, with the aim of revolutionising public services, stimulating economic growth, and hopefully positioning the UK as a global AI superpower. Prime Minister Sir Keir Starmer presented this ambitious blueprint during a speech at University College London (UCL) East on 13th January 2025, where he outlined how AI will be integrated into all facets of public and private life to drive efficiency, create jobs, and improve living standards.

A Comprehensive Strategy for Change

The “AI Opportunities Action Plan” encompasses 50 recommendations devised by Matt Clifford, the Prime Minister’s AI adviser. With a central focus on fostering innovation, enhancing public service delivery, and boosting economic productivity, the plan has already garnered commitments of £14 billion from leading tech firms, expected to create 13,250 jobs across the UK.

The Key Pillars of the Plan

The government has pledged to transform the UK into a hub for AI innovation and investment, targeting a global leadership position in this rapidly evolving field. To do this, the government says its AI plan has three key pillars, which are:

1. Laying the foundations for AI growth. Central to the strategy is the creation of dedicated AI Growth Zones, with the first located in Culham, Oxfordshire. Culham, home to the UK Atomic Energy Authority and cutting edge fusion research, offers the energy infrastructure needed to power AI’s high computational demands. The government says additional zones will be announced later this year, prioritising de-industrialised regions with access to energy and strong local government support. These zones will benefit from expedited planning approvals and enhanced connectivity to energy grids.

The government has also said that it plans to build a state of the art supercomputer, thereby increasing the UK’s compute capacity twentyfold by 2030. It’s hoped that infrastructure will underpin the development and deployment of AI applications, enabling the UK to compete with global leaders such as the US and China. As PM Sir Keir Starmer says, “This supercomputer will ensure the UK remains at the forefront of AI research and application, demonstrating our commitment to innovation and technological progress.”

2. Driving adoption across sectors. AI is already being deployed in sectors such as healthcare, where it assists in diagnosing conditions like breast cancer and improving patient care. The plan, therefore, aims to expand AI’s reach into other public services, reducing administrative burdens for teachers and social workers, automating road maintenance by detecting potholes via cameras, and accelerating planning consultations.

Private sector adoption is also said to be a priority. The government has also tasked each department with integrating AI into their operations to improve efficiency and service delivery. With this in mind, a new digital centre within the Department for Science, Innovation and Technology (DSIT) will oversee this transition, identifying pilot projects and scaling successful initiatives across the public sector.

As PM Sir Keir says, “AI will drive incredible change in our country. From teachers personalising lessons to speeding up planning applications, it has the potential to transform the lives of working people.”

3. Ensuring global competitiveness. The UK has long wanted to be a global tech power, and this latest plan involves the UK establishing a National Data Library to securely provide high quality public data for AI training, fostering innovation while ensuring privacy and security. An AI Energy Council, chaired by the Science and Energy Secretaries, will address the energy demands of AI technologies, supporting the government’s broader clean energy objectives.

As Science, Innovation, and Technology Secretary Peter Kyle says, “We already have remarkable strengths we can tap into when it comes to AI – building our status as the cradle of computer science and intelligent machines and establishing ourselves as the third largest AI market in the world.”

The plan also includes support for AI scale ups and startups, with targeted initiatives to attract international investment and talent. Sir Demis Hassabis, Nobel Prize winner and AI pioneer, has been appointed to provide expertise, alongside Matt Clifford, to guide the UK’s AI strategy. Hassabis says, “The AI Opportunities Action Plan will help the UK unleash AI’s potential to drive growth, accelerate scientific discovery, and tackle important, real-world problems.”

Investment and Costs

In terms of how much this is all going to cost, the government says it’s secured significant private sector investment as part of this initiative. Notable commitments, so far, include:

• Vantage Data Centres making a £12 billion investment to develop one of Europe’s largest data centre campuses in Wales, creating over 11,500 jobs.
• Kyndryl, which plans to establish a tech hub in Liverpool, generating up to 1,000 AI related jobs.
• Nscale, a Norway based hyperscaler engineered for AI, is embarking on a $2.5 billion project to construct the UK’s largest sovereign AI data centre in Loughton, Essex, by 2026.

These investments should complement the £25 billion announced at the International Investment Summit last year, underscoring the UK’s appeal as a destination for AI related enterprises.

Benefits and Challenges

In terms of the benefits, financially, the International Monetary Fund (IMF) estimates that fully embracing AI could boost UK productivity by up to 1.5 percentage points annually, potentially adding £47 billion to the economy each year. More broadly, the government’s plan aims to translate these gains into tangible benefits for UK citizens, including higher living standards, improved public services, and increased economic opportunities.

However, the scale of this undertaking is going to present some challenges. For example, critics have raised concerns about the upfront costs, estimated at billions of pounds, and the time required to realise those benefits, particularly given the stretched public finances and rising borrowing costs. Also, the pivot away from a safety first narrative, which characterised previous government approaches, has sparked debate about the potential risks of unregulated AI deployment.

In addition to these concerns, there is growing unease about the potential impact of AI on employment. While automation and AI technologies promise to create new opportunities, many fear they could displace significant numbers of jobs, particularly in industries heavily reliant on repetitive or manual labour. The government acknowledges these risks and has emphasised the importance of re-skilling and up-skilling the workforce to meet the demands of an AI driven economy. Initiatives to support education and training are expected to play a crucial role in mitigating these impacts and ensuring the benefits of AI are shared equitably across the population.

A Vision for the Future

Sir Keir Starmer’s speech at UCL East mainly emphasised the transformative potential of AI, describing it as “a fantastic opportunity that will transform lives”. He also reiterated the government’s commitment to ensuring that AI delivers benefits for all citizens, not just select industries or regions, saying: “Our plan will make Britain the world leader,” and that “It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services.”

Science, Innovation, and Technology Secretary Peter Kyle has also echoed this sentiment, saying: “This government is determined that the UK is not left behind in the global race for AI. The actions we commit to today will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today.”

The government’s AI Opportunities Action Plan, therefore, appears to show a bold and comprehensive approach to embracing technological change. By addressing infrastructure, investment, and adoption simultaneously, the UK is hoping to establish itself as a global leader in AI, thereby ensuring the technology benefits the entire nation. As the plan unfolds, its success will depend on sustained commitment, collaboration between public and private sectors, and careful management of risks and resources.

What Does This Mean For Your Business?

The AI Opportunities Action Plan is a bold and optimistic vision for the UK’s future which aims to transform the UK into a global leader in AI. However, its ultimate success will depend on careful implementation and sustained commitment from both the public and private sectors and, crucially, being able to afford it, given the many other priorities in the UK at the moment. The potential rewards are significant and tempting: enhanced public services, economic growth, and global competitiveness. However, there is no escaping the challenges posed by the scale of investment required, the technical and ethical complexities of AI, and the need to balance innovation with regulation.

At the same time, there are widespread concerns about how AI could disrupt the job market, with automation potentially threatening many roles. Critics argue that while AI may create new opportunities, the risk of job displacement can’t be ignored. The government has sought to reassure people by highlighting the thousands of jobs that AI infrastructure projects are expected to generate. For example, PM Sir Keir Starmer says, “This will change the work that people do, but it won’t just lead to lots of job losses. On the contrary, because of the investment in AI we’ve announced, we are creating brand-new jobs and opportunities.”

To address these fears, fostering public trust and ensuring equitable access to new opportunities will be critical. The government must also prioritise re-skilling and up-skilling initiatives to prepare the workforce for the AI driven economy. Without such measures, the benefits of AI could become unevenly distributed, exacerbating inequalities rather than alleviating them.

To achieve its goals and deliver on the vision, the government must really ensure that this ambitious plan is not just about headline grabbing announcements but translates into tangible results that benefit all citizens. Key to this will be fostering public trust, ensuring equitable access to the opportunities created, and maintaining a focus on responsible AI development. With the right measures, the UK has the potential to not only navigate these challenges but also to shape the future of AI on the global stage. For now, all eyes are on how the government delivers on its promises and whether AI can truly become the engine of a decade long national renewal.

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What Are Digital Driving Licences?

Digital driving licences are virtual versions of the traditional photocard driving licence. Stored on a secure government app, they will serve the same purpose as physical licences, i.e. proving the holder’s right to drive and acting as a form of identification. However, unlike physical licences, digital ones will only be accessible via a smartphone or other smart device, and will incorporate more advanced security features such as biometrics and two factor authentication.

Why Are They Being Introduced?

The government says the move is part of its broader ambition to modernise public services through digital innovation. It’s understood that the UK government is particularly interested in not just the enhanced security compared to physical documents, but also the fact that they could streamline everyday interactions, such as age verification when buying alcohol or voting, while maintaining robust privacy safeguards.

Other Countries Have Them Already

Other countries, including Australia, Denmark, Iceland, and Norway, have already adopted digital driving licences. Also, EU member states are required to implement at least one form of official digital ID by 2026. The UK’s introduction of digital driving licences, therefore, places it among a growing list of nations embracing this technology.

How Will Digital Driving Licences Work?

The digital licences will be available via a new app developed by the UK government, tentatively named Gov.uk Wallet. This app will act as a central hub for various public services, potentially including tax payments, benefits claims, and National Insurance numbers. The app will feature an in built digital wallet that securely stores the virtual licence, much like banking apps.

To access the licence, users will need to authenticate their identity using advanced security measures, such as fingerprint or facial recognition, and multi factor authentication. The app will also include features for users to check endorsements, view their driving record, and renew their licence.

Won’t Replace Physical Licences Yet

Although digital licences are not intended to replace physical cards, they may offer a convenient alternative for those who prefer not to carry physical documentation. For example, they could be used for age verification at supermarket self checkouts, eliminating the need for assistance from staff.

Benefits of Digital Driving Licences

The introduction of digital driving licences may offer several potential advantages, such as:

• Convenience. Drivers will no longer need to carry a physical card, as their licence will be accessible on their smartphone.
• Enhanced Security. Advanced security features make digital licences harder to forge or lose compared to their physical counterparts.
• Flexibility. Users can hide sensitive information, such as their address, when presenting their licence in certain situations, such as in bars or shops.
• Real Time Updates. The digital licence will automatically reflect changes in the holder’s driving status, such as endorsements or penalty points.

What Are The Drawbacks?

While digital driving licences may offer several advantages, there are also concerns and potential drawbacks to consider:

• Privacy issues. Privacy advocacy groups, such as Big Brother Watch, have expressed concerns about the potential misuse of personal data. Silkie Carlo, the group’s director, previously called such digitalisation “one of the biggest assaults on privacy ever seen in the UK.” Critics also argue that integrating multiple services into a single app could lead to increased surveillance. The government has, however, stated that the app will not serve as a comprehensive digital ID card and reassured the public that physical licences will remain available.
• A digital divide. Not everyone owns a smartphone or is comfortable using apps, potentially excluding certain groups, such as the elderly or those in low income households.
• A reliance on technology. The system’s success depends on robust app performance and reliable internet connectivity. This means that any technical glitches or outages could cause inconvenience.
• Their non mandatory nature. Digital licences will be voluntary as highlighted by a government spokesperson who said: “Technology now makes it possible for digital identities to be more secure than physical ones, but we remain clear that they will not be made mandatory.” However, because they will be voluntary, their adoption may be quite slow, and some organisations could, therefore, be hesitant to accept them as a valid form of identification.

When Will They Be Available?

The government plans to introduce digital driving licences later this year, with an official launch date expected to be announced soon. The rollout will likely follow a phased approach, with initial availability for specific groups before wider public access.

Costs and Accessibility

The digital driving licence will be free to use for those who already hold a physical licence. However, the cost of developing and maintaining the app will likely be covered by taxpayers. The government has not yet disclosed specific details regarding the app’s budget or funding.

Broader Implications

The introduction of digital driving licences represents a step towards the digital transformation of public services in the UK. If successful, the initiative could pave the way for further innovations, such as integrating other forms of identification and government services into the app. However, the government will need to carefully address concerns about privacy and accessibility to ensure public confidence.

What Does This Mean For Your Business?

By leveraging the convenience of smartphones and advanced security features, the government says it’s aiming to simplify everyday interactions and enhance the safety of personal data. This initiative aligns with global trends: other nations already have digital identification systems, and the EU has set a 2026 deadline for member states to implement similar measures. However, the path forward is not without its challenges.

On one hand, the potential benefits of digital driving licences are compelling. The convenience of having a secure, easily accessible licence on a smartphone is clear, particularly in situations such as age verification at checkouts or renewing a licence online. The use of advanced security measures, including biometrics and multi factor authentication, should also make digital licences more robust against forgery or loss. Also, the ability to update driving records in real time should ensure accuracy and eliminate the need for reissuing physical licences to reflect changes such as penalty points. These advantages could enhance the user experience for many drivers.

On the other hand, there are valid concerns about digital driving licences and using them as part of a broader way of keeping track of citizens. For example, privacy advocates have raised alarms about the integration of multiple government services into a single app, which some fear could lead to increased surveillance or misuse of personal data. While the government has issued an assurance that digital licences will not serve as a comprehensive digital ID card, scepticism remains, particularly among those wary of such centralised systems. The initial voluntary nature of the scheme is reassuring to many, but it may also lead to slow adoption and uneven acceptance by organisations and businesses.

The digital divide poses a significant barrier. Not everyone has access to the necessary technology or feels comfortable using smartphone apps, potentially excluding vulnerable groups such as the elderly or low income households. The reliance on technology also introduces risks such as technical glitches, cybersecurity threats, or connectivity issues disrupting access to this critical identification tool. These challenges highlight the importance of maintaining the current physical licences as a reliable fallback.

As the rollout approaches, the government will want to strike a careful balance between innovation and inclusion. Efforts to educate the public about the app, ensure robust privacy protections, and maintain the accessibility of physical licences will be crucial in building trust and confidence in the new system. While the initiative has the potential to transform the way drivers interact with public services, its success will ultimately depend on addressing these challenges and ensuring that no one is left behind in the transition.

Digital driving licences appear to represent a promising step towards modernisation, offering clear benefits in terms of convenience and security. However, their introduction must be carefully managed to mitigate the risks and ensure that they enhance, rather than hinder, accessibility and privacy. As with any technological advancement, public confidence will be the cornerstone of their successful adoption, making transparency and inclusivity key priorities for the government.

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CrowdStrike 

Back in July, a global IT outage caused by a faulty update impacting Windows systems, from the cybersecurity firm CrowdStrike significantly affected multiple sectors in the UK, including data centres, the NHS, and the financial industry. It led to widespread disruptions and, although it was not a cyberattack, it does appear to be a motivating factor for the UK government’s announcement of a change classification of UK data centres.

Not Just Protection against Cyber Criminals 

Although the CrowdStrike effects may have been a major catalyst for the new classification of data centres, their classification as CNI should also help create provision to give them more protection from major environmental disasters and other IT blackouts.  This new classification is part of a wider movement to give them the special protection they merit. As highlighted in the government’s announcement, much of the data housed and processed in UK data centres, from photos taken on smartphones to patients’ NHS records and sensitive financial investment information, could be considered as “powering the economy”.

How does the New Classification Compare? 

The idea to now classify UK data centres as CNI will mean that in terms of added protection, they have been put on an equal footing to water, energy and emergency services systems. This means that they can, as the government says: “now expect greater government support in recovering from and anticipating critical incidents, giving the industry greater reassurance when setting up business in UK and helping generate economic growth for all.” 

Also, as Technology Secretary Peter Kyle says: “Bringing data-centres into the Critical National Infrastructure regime will allow better coordination and cooperation with the government against cyber criminals and unexpected events.” 

More specifically, the government says this “support” will mean:

• The setting up of a dedicated CNI data infrastructure team of senior government officials who will “monitor and anticipate potential threats, provide prioritised access to security agencies including the National Cyber Security Centre, and coordinate access to emergency services should an incident occur”. 
• The government intervening, for example in the event of an attack on a data centre hosting critical NHS patients’ data. In this event, with the new classification of data centres, the government says it will “ensure contingencies are in place to mitigate the risk of damage or to essential services, including on patients’ appointments or operations.” 
• The UK is already home to the highest number of data centres in western Europe. Giving CNI status to data centres in the UK could increase business confidence in investing in data centres in the UK, an industry which already generates an estimated £4.6 billion in revenues a year.

Deterrent? 

It appears that the government believes that the status will also deter cyber criminals from targeting data centres that may house vital health and financial data, minimising disruption to people’s lives, the NHS, and the economy. Presumably, this deterrent effect would come from increased penalties, greater cybersecurity investment, and enhanced monitoring and better threat detection efforts.

Just in Time 

With the UK government recently welcoming a proposed £3.75 billion investment in Europe’s largest data centre, DC01UK in Hertfordshire, and with this expected to create over 700 local jobs and support 13,740 data and tech jobs across the country, the new CNI status for data centres appears to have been given just in time.

The Cyber Security and Resilience Bill Too

As an additional measure, earlier this summer the government’s Department for Science, Innovation and Technology (DSIT) also announced it will be introducing the Cyber Security and Resilience Bill. It is thought that this will strengthen the country’s cyber defences by enhancing incident reporting requirements, helping safeguard vital sectors such as healthcare and finance, ensuring stronger protections against cyber threats like ransomware, and “mandating that providers of essential infrastructure protect their supply chains from attacks”. 

Support 

Support for the re-classifying of data centres as CNI has come from several key data centre industry players. For example, Bruce Owen, UK Managing Director of digital infrastructure provider Equinix, said: “We welcome today’s announcement by the government which recognises the critical nature of data centres and digital infrastructure to the economy and society.” 

What Does This Mean For Your Business? 

The reclassification of UK data centres as CNI is a strategic response to immediate threats, like the CrowdStrike outage, and a forward looking move to secure the country’s digital infrastructure. By placing data centres on par with essential services like energy and emergency systems, the government appears to be trying to recognise their pivotal role in supporting the digital economy and vital public services such as the NHS.

As CNI, data centres now gain access to increased government resources, including the support of the National Cyber Security Centre (NCSC), and a dedicated CNI data infrastructure team to monitor and anticipate threats. This could ensure quicker responses to vulnerabilities and a stronger defence against cyberattacks, particularly for centres hosting critical data, such as health and financial information. The new classification also aims to protect against broader risks, such as natural disasters or IT blackouts, which could severely impact businesses and public services alike, thereby trying to provide protection that takes account of any serious eventuality.

The government’s commitment to boosting this sector is clear, as evidenced by the approval of a £3.75 billion investment in Europe’s largest data centre project in Hertfordshire. The new status, could, therefore encourage further investments, reinforcing business confidence and supporting sustainable growth in the tech industry. The Cyber Security and Resilience Bill, expected to be introduced soon, may also further strengthen these protections by enforcing stricter incident reporting and ensuring supply chain security for essential services.

Support from industry leaders reflects the importance of securing the country’s digital infrastructure, as more businesses rely on data centres to manage sensitive information. This reclassification is not just a reactive measure, but many would argue it is a necessary step in ensuring the continuity of services that millions rely on daily.

By classifying data centres as CNI, the UK is laying the groundwork for a more secure and resilient digital future. With increased investment, enhanced government support, and forthcoming legislative measures, this decision may help position the UK as a leader in digital infrastructure protection, helping to safeguard its economy, public services, and reputation as a global hub for technological innovation.

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The rising demand for second hand smartphones has fuelled a 150 per cent spike in phone thefts across the UK, particularly street snatch thefts.

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Summit 

The UK hosted the first major global AI Safety Summit on the 1st and 2nd November at Bletchley Park, the historic centre of the UK’s WWII code breaking operation, where the father of modern computer science Alan Turing worked. The summit brought together international governments of 28 countries plus the EU, leading AI companies, civil society groups and experts in research.

The aims of the summit were to develop a shared understanding the risks of AI, especially at the frontier of development, and to discuss how they can be mitigated through internationally coordinated action, and of the opportunities that safe AI may bring.

Some notable attendees included Elon Musk, OpenAI CEO Sam Altman, UK Prime Minister Rishi Sunak, US vice president Kamala Harris, EU Commission president Ursula von der Leyen, and Wu Zhaohui, Chinese vice minister of science and tech.

Key Points 

The two day summit, which involved individual speakers, panel discussions, and group meetings covered many aspects of AI safety. Some of the key points to take away include:

• UK Prime Minister Rishi Sunak announced in his opening speech that he and US Vice President Kamala Harris had already decided that the US and UK will establish world leading AI Safety Institutes to test the most advanced frontier AI models. Mr Sunak said the UK’s Safety Institute will develop its evaluations process in time to assess the next generation of models before they are deployed next year.
• Days before the summit, thereby setting part of the agenda for the summit, US President Joe Biden issued an executive order requiring tech firms to submit test results for powerful AI systems to the US government prior to their release to the public.  At the summit, in response to this, UK tech secretary, Michelle Donelan, made the point that this may not be surprising since most of the main AI companies are based in the US.
• The US and China, two countries often in opposition, agreed to find global consensus on how to tackle some of the complex questions about AI, such as how to develop it safely and regulate it.
• In a much publicised interview with UK Prime Minister Rishi Sunak, 𝕏’s Elon Musk described AI as “the most disruptive force in history” and said that “there will come a point where no job is needed”. Mr Musk added: “You can have a job if you wanted to have a job for personal satisfaction. But the AI would be able to do everything.”  Mr Musk said that as a result of this: “One of the challenges in the future will be how do we find meaning in life.” It was also noted by some that Mr Musk had been using his 𝕏 platform to mock politicians at the AI summit ahead of his headlining interview with the UK Prime Minister. Mr Musk’s comments were perhaps nor surprising given that he was one of the many signatories to an open letter earlier in the year calling for a moratorium on the development of AI more advanced than OpenAI’s GPT-4 software. That said, Mr Musk has just announced the launch of a new AI chatbot called ‘Grok,’ a rival to ChatGPT and Bard, which has real time knowledge of the world via the 𝕏 platform, and Mr Musk says has been “designed to answer questions with a bit of wit and has a rebellious streak.” 
• As highlighted by Ian Hogarth, chair of the UK government’s £100 miliion Frontier AI Taskforce, “there’s a wide range of beliefs” about the severity of the most serious risks posed by AI, such as the catastrophic risks of technology outstripping human ability to safeguard society: the existential risk. As such, despite the summit, the idea that AI could wipe out humanity remains a divisive issue. For example, on the first day of the summit, Meta’s president of global affairs and former UK Deputy Prime Minister, Nick Clegg, said that AI was caught in a “great hype cycle” with fears about it being overplayed.
• Different countries are moving at different speeds with regards to the regulatory process around AI. For example, the EU started talking about AI four years ago and is now close to passing an AI act, whereas other countries are still some way from this point.

Criticism 

Although the narrative around the summit was that it was a great global opportunity and step in the righty direction, some commentators have criticised the summit as being a missed opportunity for excluding workers and trade unions, and for simply being an event that was dominated by the already dominant big tech companies.

What Does This Mean For Your Business? 

The speed at which AI technology is moving, mostly ahead of regulation, and with its opportunities and threats, which some believe to be potentially catastrophic, and the fact that no real global framework for co-operation in exploring and controlling AI made this summit and future ones both inevitable and necessary.

Although it involved representatives from many countries, to some extent it was overshadowed in the media by the dominant personality representing technology companies, i.e. Elon Musk. The summit highlighted divided opinions on the extent of the risks posed by AI but did appear to achieve some potentially important results, such as establishing AI Safety Institutes, as well as the US agreeing with China on something for a change. That said, although much focus has been put on the risks posed by AI, it’s worth noting that for the big tech companies, many of whose representatives were there, AI is something they’re heavily invested in as the next major source of revenue and to compete with each other, and that governments also have commercial, as well as political interest in AI.

It’s also worth noting critics’ concerns that the summit was really a meeting of the already dominant tech companies and governments and not workers, many of whom may be most directly affected by continuing AI developments. With each week that passes, it seems, there’s a new AI development, and whether concerns are over hyped, as Nick Clegg suggests or fully justified, nobody really knows as yet.

Many would agree, however, that countries getting together to focus on the issues and understand the subject and its implications and agree on measures that could mitigate risks and maximise the opportunities and benefits of AI going forward, is a very positive step when agreements have not always been possible, although maybe to be expected at this point.

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