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Rishi Sunak has encouraged people to be “comfortable failing” when they start businesses during a conversation with billionaire Elon Musk.

The pair spent close to an hour talking at an event in central London where journalists were invited but not allowed to ask questions. Business leaders were given a chance to put questions to the duo.

They spoke about how to encourage people to start their own businesses. They also ranged onto topics like how to stop killer robots.

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Mr Sunak spoke about how, as prime minister, his job was to make the country start-up friendly, hinting at reforms that may be coming in the autumn statement – including on pensions.

The prime minister said Chancellor Jeremy Hunt has got a “bunch of incredible reforms to unlock capital from all the people who have it and deploy it into growth equity” – but they’re a work in progress.

Mr Sunak went on to say another challenge for encouraging start-ups was “how do you transpose that culture from places like Silicon Valley across the world where people are unafraid to give up the security of a regular pay cheque to go and start something, and be comfortable with failure.”

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He added: “You’ve got to be comfortable failing, and knowing that’s just part of the process. That’s a tricky cultural thing to do overnight, but it’s an important part of I think creating that kind of environment.”

Mr Musk – who is the world’s richest man – told Mr Sunak – who is estimated to be worth hundreds of millions of pounds – that someone’s first start-up failing “shouldn’t be a catastrophic, career-ending thing”.

The business leader said that, since starting a company is “high risk, high reward”, that people need incentives.

02/11/2023. London, United Kingdom. The Prime Minister Rishi Sunak talks to Elon Musk. 10 Downing Street. Picture by Simon Walker / No 10 Downing Street
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The pair did not take questions from journalists. Pic: No 10 Downing Street

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Mr Sunak said that he agrees, and said that relative to many European countries and California, the UK has much lower capital gains tax.

The event, which came after Mr Sunak’s two-day AI safety conference near Milton Keynes, saw the pair also speak about killer robots and other aspects of technology.

Mr Musk described artificial intelligence as “a magic genie” that grants you limitless wishes.

On robots, Mr Musk emphasised the need to have an off-switch – what some might call a kill-switch – for humanoid cyborgs.

“A humanoid robot can basically chase you anywhere,” he said, adding, “it’s something we should be quite concerned about. If a robot can follow you anywhere, what if they get a software update one day, and they’re not so friendly any more?”

Mr Sunak said “we’ve all watched” movies about robots that end with the machines being switched off.

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Labour’s shadow paymaster general Jonathan Ashworth said: “How out of touch is Rishi Sunak? After 13 years of the Tories, the public are enduring the worst cost of living crisis in memory and he is spending his time telling Elon Musk that he wishes they would give up their jobs and be ready to fail.

“He hasn’t got a clue.”

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US eyes quantum computing investments amid rising national security stakes

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US eyes quantum computing investments amid rising national security stakes

US eyes quantum computing investments amid rising national security stakes

Washington is considering direct investments in US quantum computing companies as it seeks to keep pace with China’s tech capabilities.

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Despite gov’t shutdown, crypto market structure bill ‘90% there’ — Coinbase CEO

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Despite gov’t shutdown, crypto market structure bill ‘90% there’ — Coinbase CEO

Despite gov’t shutdown, crypto market structure bill ‘90% there’ — Coinbase CEO

The remaining “10%” of issues center mainly on DeFi, which Brian Armstrong says lawmakers are addressing carefully to preserve innovation.

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PM has ‘confidence’ in Jess Phillips after grooming survivors demanded her resignation

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PM has 'confidence' in Jess Phillips after grooming survivors demanded her resignation

Sir Keir Starmer has backed his under-fire safeguarding minister to continue leading the government’s efforts to set up a national inquiry into grooming gangs after four survivors demanded her resignation.

The prime minister said on Thursday that Jess Phillips has “devoted vast parts of her life and career” to tackling violence against women and girls, and has “confidence in her”, despite the turmoil that has beset the process.

All four survivors who quit the government’s grooming gangs inquiry panel said they will consider returning to the process if Ms Phillips resigns.

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However, five other survivors on the panel have written to Sir Keir to say they will only stay if Ms Phillips remains.

They said she had remained impartial, had listened to feedback and her previous experience to reduce violence against women and girls and her “clear passion and commitment is important to us”.

In contrast to the four who have quit, who accused Ms Phillips of trying to expand the inquiry’s scope beyond grooming gangs, the five said it needs to be widened to focus on child sexual exploitation as a whole to ensure survivors who do not fit “the generalised stereotype” are not excluded.

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In response to the demand for Ms Phillips to quit, Sir Keir said: “The safeguarding minister has huge experience in issues relating to violence against women and girls. She’s devoted vast parts of her life and career to that, and so I do have confidence in her and Louise Casey in leading this project.”

Speaking to ITV Meridian, the prime minister also sought to reassure the victims of grooming, saying: “It’s really important that the national inquiry gets to the truth. All survivors deserve answers to their questions.”

“It is very important that I say to all survivors that I give my personal assurance that this inquiry will go wherever it needs to go, the scope will not be changed.”

It is understood Downing Street has reached out to the four survivors who quit the government’s process this week.

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Starmer defended Phillips at PMQs on Wednesday

Samantha, one of the survivors who wrote the letter saying they would only stay if Ms Phillips remains, told Sky News: “We shouldn’t be falling apart right now, we should be working together.

“Jess has only ever been fair and honest with us, she’s told us as much as she possibly can within her capacity.

“She’s provided a lot of support over the phone and in-person to a lot of us survivors behind the scenes, which people don’t see about Jess.

“So I do still want her to be part of this inquiry up until the end.”

A government source told Sky News the government will be talking to all survivors on the panel about their concerns and opinions on the type of person they want to chair the inquiry, after the leading candidate dropped out following concerns from survivors over his background as a police officer.

The government will move as fast as possible, they said, but it will likely take months to appoint the right chair.

Why four survivors quit the inquiry

The four women who resigned this week expressed concerns about how the process of selecting a chair and setting the terms of reference of the national inquiry into grooming gangs is being run.

They wrote on Wednesday to Home Secretary Shabana Mahmood, calling for Ms Phillips to step down and all survivors to be consulted on appointing a senior judge as chair with no major conflicts of interest.

Ms Phillips told parliament on Tuesday that suggestions that the scope of the inquiry was to be expanded from just grooming gangs were “categorically untrue”.

But leaked consultation documents and texts between the safeguarding minister and survivor Fiona Goddard show the survivors’ concerns that the scope would be expanded were valid.

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Shadow Housing Secretary Sir James Cleverly told Sky News that he can’t see how Jess Phillips can stay in post

The survivors’ letter says: “Being publicly contradicted and dismissed by a government minister when you are a survivor telling the truth takes you right back to that feeling of not being believed all over again.

“It is a betrayal that has destroyed what little trust remained.”

They have demanded that the scope of the inquiry remain “laser-focused” on grooming gangs and called for victims to be free to speak to support networks without fear of reprisal.

Fiona Goddard and Kemi Badenoch speaking during a press conference earlier this year
Pic PA
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Fiona Goddard and Kemi Badenoch speaking during a press conference earlier this year
Pic PA

The letter to Ms Mahmood says: “Her [Ms Phillips’] conduct over the last week has shown she is unfit to oversee a process that requires survivors to trust the government. Her departure would signal you are serious about accountability and changing direction.”

The survivors describe their demands as “the absolute bare minimum for survivors to trust that this inquiry will be different from every other process that has let us down”.

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Minister for Children and Families, Josh MacAlister told Sky News Jess Phillips will not be resigning

Frontrunner quits over ‘toxicity’

The letter was sent hours after one of the frontrunners to become chair of the inquiry withdrew, blaming “vested interests” and “political opportunism and point-scoring”.

Ex-police chief and child protection specialist Jim Gamble told the home secretary in a letter there was a “highly charged and toxic environment” around the appointment process and victims “deserve better”.

The other, Annie Hudson, a former social worker, said earlier this week she no longer wanted to be considered after intense media coverage.

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‘Everyone should park their interests’

The prime minister launched the inquiry into grooming gangs after an audit by Baroness Louise Casey showed the scale of the problem.

It is understood that the government is exploring a range of other candidates and will provide an update in due course.

A Home Office spokesperson said: “The grooming gang scandal was one of the darkest moments in this country’s history.

“That is why this government is committed to a full, statutory, national inquiry to uncover the truth. It is the very least that the victims of these hideous crimes deserve.

“We are disappointed that candidates to chair that inquiry have withdrawn. This is an extremely sensitive topic, and we have to take the time to appoint the best person suitable for the role.

“The home secretary has been clear – there will be no hiding place for those who abused the most vulnerable in our society.”

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