Eight months on from Labour’s victory in the UK’s last general election, how has our ad tech ecosystem been impacted? We examine the changes introduced by Keir Starmer and his party, as well as the industry’s trajectory for the near future. 

Since Labour’s victory in the last UK general election, what has changed so far for the UK ad tech landscape? Following the change of leadership last July, we explored what could be in store for the industry, from investment in the creative industries to new regulations on the horizon. Although Labour has not yet had a huge amount of time to deliver changes across the UK’s industries, we examine the implementation of new measures so far, along with some of the changes currently in the works under their direction. 

Data protection 

Not long after taking the reins, strengthening data protections for UK consumers was on Labour’s agenda. In October 2024, Labour introduced the Data Use and Access Bill with the objective of unlocking the secure and effective use of data for the public interest. This legislation built on the Data Protection and Digital Information Bill which had been previously introduced by the Conservative government, but not passed due to the wash-up period which preceded the general election.

Konrad Shek, director of public policy and regulation at the Advertising Association, noted that many of the group’s recommendations for the legislation were carried over and highlighted the importance of the UK modernising its data protection framework. 

Funding the creative industries

Before stepping into power, Labour had outlined their intentions to invest further in the UK’s creative industries, having acknowledged their role in contributing to the economy. In the October budget, Culture Secretary Lisa Nandy confirmed funding for the UK’s growth-driving creative industries. The creative industry was among those named to contribute to the government’s Industrial Strategy, alongside others including digital and technologies. 

This included funding to help thousands of creative businesses grow across the UK and grants to continue for start-up video game studios/grassroots music venues/regional clusters of creative firms outside of London. The budget also included £25m for devolved local growth funding (which the North East plans to use for a film studio to be built in Sunderland) and £3m towards a scheme to improve awareness of creative career paths for school children. 

Addressing AI concerns 

Despite extending financial support to the UK’s creative industry, the Labour government has found itself facing forceful opposition from the sector regarding their copyright proposals for AI training purposes. Composing legislation to establish clear boundaries on what content can be used to train AI has been a pressing issue worldwide, with an increasing number of creatives and publishers speaking out in opposition of their work being used without permission. UK group Creative Rights in AI Coalition – which includes members such as Guardian News & Media, the Financial Times and the Association of Online Publishers – called on the government  to “spur growth in the creative and tech sectors by protecting copyright.” 

In response to the pressure mounting around the issue, Labour launched a consultation into the matter late last year, seeking views on how they could establish laws which give both the creative industries and AI developers clarity over copyright laws. The consultation – which closed on 25th February 2025 – proposed “introducing an exception to copyright law for AI training for commercial purposes while allowing rights holders to reserve their rights, so they can control the use of their content.” 

The proposal was met with much opposition from the creative industry. Book publishers criticised it as being “entirely untested and unevidenced”. Similarly, Beeban Kidron, a crossbench peer campaigning to protect the rights of artists and creatives, said: “The government is consulting on giving away the creativity and livelihoods of the UK creative sector which is worth £126bn a year.”

It appears that the government will not be backing down on the proposal. In March, Labour minister Peter Kyle spoke on the matter, stating: “Just as in every other time there is change in society, there will be some people who will either resist change or try to make change too difficult to deliver. That’s why it is important we have a government that will prioritise the forward movement of our society, economy and government itself, so all are fit to seize the opportunities of the future.” 

Investment in AI  

So far, Labour has been bullish in their attitude towards AI. Last August, they pledged £32m towards 98 AI projects with the objective of improving productivity and public services. These projects included tech innovations aimed at improving the efficiency of prescription deliveries and reducing train delays, among others.

At the start of 2025, Labour announced an AI action plan, with multibillion-pounds of investment. The first part of the plan involves laying the foundations to enable AI, which will include building sustainable AI infrastructure; unlocking datasets; training, attracting and retaining the next generation of AI scientists and founders; and enabling safe development and adoption through regulations. Labour hopes to save as much £45bn on public services through tech upskilling and the outsourcing of civil service work to AI. The Guardian reported that by 2030, Starmer plans to increase the amount of AI computing power under public control 20-fold, pledging to make the UK an AI world leader.

The plan is certainly ambitious – some MPs have warned that the UK will struggle to boost public sector productivity with AI due to outdated tech, poor data, and a lack of digital skills. These AI ambitions have also raised some concerns about the government meeting its green power goals. 

BBC funding 

When it comes to the BBC, Keir Starmer ruled out introducing changes to its funding model until at least 2027. On a trip to Washington DC shortly after his election as Prime Minister, Starmer stated: “We are committed in our manifesto to the BBC and to the licensing scheme.” 

However, it appears a new direction may be taken after this period: Labour’s culture secretary, Lisa Nandy, said she was thinking “radically and creatively” about alternatives to the broadcaster’s current funding model. She described the current yearly fee – which rises this year to £174.50 – as being “deeply regressive”, with financially vulnerable households having to pay proportionately more.   

Big tech legislation 

In the last month of 2024, Labour introduced new rules forcing tech firms to take action against illegal activity on their platforms, such as terror, hate and fraud. Falling under the Online Safety Act, the regulations target social media companies, search engines, messaging, gaming, and dating apps, among others. The legislation recently came into force on 17th March. Companies found in breach of the regulations could be fined up to £18m or 10% of their qualifying worldwide revenue (whichever is greater). The most serious cases also risk a court order blocking their service for UK users. 

Elsewhere, the UK government is examining options to soften the impact of its digital services tax on US tech companies. This would likely help secure a deal with the US, as the globe braces itself for the implementation of punitive tariffs from President Donald Trump. Fierce negotiations are currently under way, according to the FT.  

Elon Musk gets involved 

Speaking of the US, most will have seen tech mogul Elon Musk recently barge his way into the UK political sphere. In this unfortunate crossover, the world’s richest man has been using his influence to try to sway UK politics, scheming to destabilise Starmer and the Labour government.

The FT reported how Musk sought information about whether it would be possible to build support for other political parties, namely the rightwing Reform party, to force a change of Prime Minister before the next election. It had previously appeared that Musk had formed a tight allyship to Reform leader Nigel Farage; later, however, Musk distanced himself from Farage, commenting that he “doesn’t have what it takes” to lead the party. Musk had reportedly been examining other potential candidates to take Farage’s place, even probing what mechanisms exist to have him replaced. 

Looking ahead 

Examining the current political climate, it’s unclear where the next months, let alone years, will take us. One certainty is that it looks like AI will be taking on an increasingly large role in both the UK’s public and private sectors, which is guaranteed to have a considerable ripple effect on the ad tech industry. On that note, we can expect more trouble between the government and the creative industry when it comes to AI regulations. What legislation will be set in stone, and what impact will it have on creatives?  

As UK relations with the US move forward, it’s likely that the government may also make changes to current legislation in order to appease newly elected President Trump. This would impact US big tech operating within the UK, from AI giants to social media platforms. The US’ new tariffs are due to be announced on 2nd April.  

As for what will not be changing: we can expect the BBC’s funding model to remain the same until 2027. However, it looks like big changes are on the horizon.