Labour Government Scraps £1.3bn Tech and AI Funding Promised by Conservatives
In a surprising move, the new Labour government has decided to shelve £1.3bn of funding that was promised by the Conservatives for tech and Artificial Intelligence (AI) projects. This decision, which includes £800m for an exascale supercomputer at Edinburgh University and £500m for AI Research Resource, has sparked criticism from industry experts and leaders.
Tech business founder Barney Hussey-Yeo expressed his concerns on social media, stating that reducing investment in these crucial industries could potentially drive more entrepreneurs to the US. Similarly, businessman Chris van der Kuyl described the government’s decision as “idiotic.” Trade body techUK also warned that the UK could risk losing out to other countries if new proposals are not made quickly.
However, the Department for Science, Innovation and Technology (DSIT) defended its actions, citing the need to make difficult spending decisions in the face of unfunded commitments. They emphasized their commitment to building technology infrastructure in the UK despite the funding cuts.
One of the most significant projects affected by this decision is the Edinburgh exascale supercomputer, which was considered a priority by the previous government. The University of Edinburgh had already invested £31m in building housing for the supercomputer, which was expected to be 50 times faster than any current computers in the UK.
The future of the supercomputer is now uncertain, with the university urgently seeking a meeting with Secretary of State Peter Kyle. The potential loss of such advanced technology has been described as “bad news” by Angus Robertson MSP, while techUK’s director of technology and innovation, Sue Daley, stressed the importance of investment in large-scale computers for scientific breakthroughs and economic growth.
In response to the funding cuts, DSIT has appointed Matt Clifford to develop an action plan for identifying new AI opportunities, including infrastructure. The tech sector, valued at $1.1 trillion (£863bn) in the first quarter of 2024, remains a crucial part of the UK economy and a key focus for Labour’s economic growth plans.
As the government navigates these challenging decisions, the future of tech and AI projects in the UK hangs in the balance, with stakeholders eagerly awaiting new proposals to ensure the country remains competitive in these rapidly evolving industries.
