Title: POLITICO Tech – ‘Nothing is Off the Table’: The U.S.-UK Tech Talks Are Underway
Host: Stephen Overlee
Guest: Peter Kyle, UK’s Secretary of State for Science, Innovation and Technology
Release Date: March 24, 2025

Introduction

In the March 24, 2025 episode of POLITICO Tech titled “‘Nothing is Off the Table’: The U.S.-UK Tech Talks Are Underway,” host Stephen Overlee engages in a comprehensive dialogue with Peter Kyle, the UK’s Secretary of State for Science, Innovation, and Technology. The conversation delves into the burgeoning technological collaboration between the United States and the United Kingdom, exploring areas of synergy, negotiation challenges, regulatory frameworks, and the overarching vision for future partnerships.

Vision for US-UK Technological Collaboration

Peter Kyle opens the discussion by emphasizing the United States and the United Kingdom’s commitment to joining forces in artificial intelligence (AI) and other cutting-edge technologies. He describes the partnership using terms like "positive, upbeat, and opportunity," highlighting an optimistic outlook despite existing geopolitical tensions.

Peter Kyle (02:04): "Safety has a purpose in obviously making us safe. Safe, but also making us feel safe. And when we feel safe, we can then explore all of the opportunities that AI has."

Kyle underscores that the UK aims to not just maintain but amplify its collaborative efforts with the US to stay at the forefront of technological innovation, ensuring both national security and economic prosperity.

Negotiating the Digital Services Tax

A significant portion of the conversation addresses the ongoing negotiations surrounding the UK's Digital Services Tax (DST), a point of contention with the Trump administration. Overlee probes whether the UK might consider concessions to reach a bilateral agreement.

Stephen Overlee (03:25): "You're in the process now of hammering out a deal with the US, right? A new economic agreement. I hear that the UK's digital services taxes are on the negotiating table. Is that the case?"

Peter Kyle responds by affirming that the negotiations are comprehensive, indicating that "nothing is off the table." He alludes to the potential adjustments in DST but refrains from divulging specifics, maintaining the confidentiality expected in such high-stakes discussions.

Peter Kyle (04:28): "Nothing is off the table at this point, but I just want people to focus on what those discussions will do in terms of bearing fruit that will benefit both of our countries."

The UK's Online Safety Act and Regulatory Stance

Transitioning to regulatory matters, Overlee inquires about the UK's Online Safety Act and whether it might be softened to facilitate the US-UK deal. Kyle passionately defends the Act, framing it as a cornerstone for child safety in the digital realm, aligning with shared values between the two nations.

Peter Kyle (06:21): "The Online Safety Act’s core principles are keeping children safe in a digital age. And these are values that we share with the United States."

Kyle asserts that the Act is not merely regulatory but a reflection of societal values, ensuring that technological advancements do not compromise the safety and well-being of the younger generation. He emphasizes that while the UK is open to collaboration, safeguarding fundamental values remains non-negotiable.

Balancing Innovation and Regulation

Overlee raises concerns about the Trump administration’s apparent backpedaling on tech regulation and questions if the UK might follow suit. Kyle robustly counters this, asserting the UK’s commitment to fostering innovation without stifling it through excessive regulation.

Peter Kyle (07:57): "We are not going to do anything that would get in the way of innovation, the ability to commercialize, to upscale and to create the wealth and jobs that we need from technology."

Kyle highlights that the UK’s approach differs from the US’s regulatory fluctuations, positioning the UK as a stable and attractive environment for technological growth and investment. He reassures that the UK’s regulatory frameworks are designed to support, not hinder, technological advancements.

Navigating US Political Dynamics and Influential Figures

The conversation also touches upon the dynamics within the US administration, particularly the influence of figures like Elon Musk and the administration’s stance towards the UK government. Overlee suggests that Musk may pose challenges to the US-UK relationship.

Stephen Overlee (12:09): "Does Elon Musk get in the way?"

Kyle dismisses these concerns, emphasizing the robustness of the US-UK alliance and the ability to navigate individual influences without compromising the strategic partnership.

Peter Kyle (12:09): "There is nothing at the moment that gets in the way of that special relationship and our ability to seek out areas of common ground."

Kyle points to the shared values and long-standing alliance between the two nations as a buffer against internal political tensions, ensuring that the broader strategic objectives remain intact.

Reaffirming US-UK Alliance Amid Global Shifts

Kyle addresses the changing global landscape, including the UK's post-Brexit relationship with the EU and the shifting geopolitical dynamics involving Russia and China. He positions the US-UK partnership as a stabilizing force capable of adapting to global disruptions.

Peter Kyle (15:07): "What we're doing is having a cold, hard look at what Britain does well, what Britain aspires to do better, and then putting it into the context of our relationship with the United States."

He emphasizes the importance of forming strong alliances in areas like AI, space, biological sciences, and climate technology to navigate and thrive amidst global challenges and opportunities.

Attracting Investment and Fostering UK Tech Ecosystem

Highlighting the UK’s proactive stance in attracting venture capital and fostering a vibrant tech ecosystem, Kyle discusses his engagements with key industry players in California. He conveys the UK’s readiness to eliminate investment barriers and create an inviting environment for global tech pioneers.

Peter Kyle (16:53): "We are now here and hungry for investment. We're open for investment, and the barriers you told me that existed to investment have gone. So come on, let's go, let's get cracking, creating the jobs and opportunities that are available in the UK."

Kyle speaks to the UK’s reinvigorated investment landscape, aimed at creating jobs and driving economic growth through technological innovation, while also ensuring that these efforts align with national and allied interests.

Conclusion: A Golden Window of Opportunity

As the discussion wraps up, Kyle encapsulates the essence of the US-UK tech talks, referring to the current period as a "golden window of opportunity." He remains optimistic about the potential outcomes of the negotiations, foreseeing substantial economic and societal benefits for both nations.

Peter Kyle (18:13): "This is a real golden window of opportunity for us at the moment, a golden opportunity that we want to grab with both hands."

Overlee acknowledges Kyle’s insights and the promising trajectory of the US-UK partnership, concluding the episode on a note of cautious optimism and anticipation for future developments.

Notable Quotes with Timestamps

1. On the Purpose of Safety in AI:

   Peter Kyle (02:04): "Safety has a purpose in obviously making us safe. Safe, but also making us feel safe. And when we feel safe, we can then explore all of the opportunities that AI has."

2. Regarding Comprehensive Negotiations:

   Peter Kyle (04:28): "Nothing is off the table at this point, but I just want people to focus on what those discussions will do in terms of bearing fruit that will benefit both of our countries."

3. On Commitment to Innovation:

   Peter Kyle (07:57): "We are not going to do anything that would get in the way of innovation, the ability to commercialize, to upscale and to create the wealth and jobs that we need from technology."

4. Addressing the US-UK Alliance Strength:

   Peter Kyle (12:09): "There is nothing at the moment that gets in the way of that special relationship and our ability to seek out areas of common ground."

5. On the Opportunity Presented by Current Negotiations:

   Peter Kyle (18:13): "This is a real golden window of opportunity for us at the moment, a golden opportunity that we want to grab with both hands."

Final Thoughts

This episode of POLITICO Tech provides an in-depth exploration of the strategic dialogues shaping the future of US-UK technological collaboration. Through Peter Kyle’s insights, listeners gain an understanding of the complexities and opportunities inherent in international tech negotiations, the balancing act between regulation and innovation, and the unwavering commitment to fostering a robust transatlantic alliance in an era defined by rapid technological advancement and geopolitical shifts.