UK shelves £1.3bn of funding for technology and AI projects | Technology sector

The new Labour government has shelved £1.3bn of funding pledged by the Conservatives for technology and artificial intelligence projects, putting the future of the UK’s first next-generation supercomputer in doubt.

The projects, announced last year, include £800m for the creation of an exascale supercomputer at the University of Edinburgh and a further £500m for the AI Research Resource, which funds computing power for AI.

The government argues that these were “unfunded commitments”. The Department for Science, Innovation and Technology said the funding had been promised by the previous government but had not been allocated in its spending plans.

A spokesperson said: “We are absolutely committed to building technology infrastructure that delivers growth and opportunity for people across the UK.

“The government is taking difficult and necessary spending decisions across all departments in the face of billions of pounds of unfunded commitments. This is essential to restore economic stability and deliver our national mission for growth.”

About £300m in funding for the AI Research Resource has already been distributed and continues as planned.

However, the shadow science secretary, Andrew Griffith, said when the election was called, ministers had been advised by officials that the department was likely to underspend its budget for the current financial year.

He added: “This is a terrible blow to the UK tech sector and could be just the start of Labour cuts. During the election, Labour refused to commit to growing the amount the UK spends on research, yet that’s a core part of growing a modern economy. If DSIT can’t get the funds from the Treasury, this means university research can expect to be hit, too.”

Last week, the science secretary, Peter Kyle, said he was “putting AI at the heart of the government’s agenda to boost growth and improve our public services”, and appointed the tech entrepreneur Matt Clifford to draw up an action plan to identify new AI opportunities.

The plan will look at the necessary infrastructure, talent and data access required to drive AI adoption by the public and private sectors.

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The funding decisions mean that the future of the Edinburgh exascale supercomputer is unclear.

The UK’s first next-generation supercomputer – 50 times faster than any of the existing machines – was to be hosted at the University of Edinburgh, able to perform 1 billion billion calculations each second. The university hosts the country’s current national supercomputer, ARCHER2.

The University of Edinburgh says on its website: “Exascale will help researchers model all aspects of the world, test scientific theories and improve products and services in areas such as artificial intelligence, drug discovery, climate change, astrophysics and advanced engineering.”