The new Labour Government has announced it will halt £1.3bn of funding, initially promised by the Conservatives, for tech and Artificial Intelligence (AI) projects, according to the BBC. This includes £800m for an exascale supercomputer at Edinburgh University and £500m for the AI Research Resource, which funds computing power for AI.
The funds were unveiled less than a year ago. However, the Department for Science, Innovation and Technology (DSIT) clarified that the money was pledged by the previous administration but was never allocated in the budget. DSIT defended its actions, stating that difficult spending decisions across all departments are necessary to restore economic stability and achieve national growth goals. The department emphasised its ongoing commitment to building technology infrastructure in the UK.
Industry insiders have criticised the decision, with trade body techUK urged the Government to propose new plans swiftly to prevent the UK from falling behind in crucial future industries.
Meanwhile, the Conservatives defended its actions, claiming that DSIT had underspent under their leadership. Shadow secretary Andrew Griffith noted that officials had advised ministers of a likely budget underspend for the current financial year, highlighting the Conservatives’ commitment to science, research, and innovation, including AI leadership.
Secretary of State Peter Kyle has notified those affected by the cut in funding.
The future of the Edinburgh exascale supercomputer project is now unclear. Edinburgh University had already invested £31m in building housing for the supercomputer, which was a priority project for the previous Government. The machine, expected to be 50 times faster than any current UK computers, was set to advance research in AI, drug discovery, climate change, astrophysics, and advanced engineering. A university spokesperson emphasised its leadership in UK supercomputing and expressed readiness to collaborate with the government on the next phase of technology development.
Last week, DSIT announced that Matt Clifford, co-organiser of the inaugural AI Safety Summit at Bletchley Park, had been tasked with creating an action plan for identifying new AI opportunities, including infrastructure development. The tech sector is crucial to the UK economy and Labour’s economic growth priorities. According to a recent report by tech network Tech Nation, the UK tech sector had a market value of $1.1 trillion (£863bn) in the first quarter of 2024.
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