My understanding is at that Microsoft runs such a tool and you can request access to it. (PhotoDNA). As I understand you hash an image send it to them and get back a response.
The government doesn't need more dragnet surveillance capabilities than it already has. Also this solution basically asks the service operator to upload illegal content to the government. So there would need to be a strong guarantee they wouldn't use that as proof the service operator has committed a crime. Imagine what they would do to Elon Musk if he did that to run X. The government is also usually incompetent at running reliable services.
"The government" in the UK already basically shields big internet operators from legal responsibility from showing teenagers how to tie a ligature. But I wouldn't characterise them as the problem — more public oversight or at least transparency of the behaviour of online operators who run services used by thousands of minors might not be a bad thing. The Musk comment also speaks to a paranoia that just isn't justified by anything that has happened in the past 10 years. The EU is in fact the only governmental organisation doing anything to constrain the power of billionaires to distort and control our public discourse through mass media and social media ownership.
I don't understand this comment. Are you implying Prince Andrew was _in_ or part of the UK Government? This would be a weird misunderstanding of our system.
If it's just a general cynical "all gubernment is bad and full of pedos" then I'm not sure what the comment adds to this discussion.
Trying to tweak an image will not work because you will find the police on your doorstep.