Government Scraps £1.3bn Tech and AI Funding in the UK

Government Scraps £1.3bn Tech and AI Funding in the UK

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In a recent development, the new Labour government has halted £1.3bn in funding for tech and Artificial Intelligence (AI) projects, initially promised by the previous Conservative administration. This decision, unveiled by the BBC, involves the cancellation of £800m earmarked for an exascale supercomputer at Edinburgh University and an additional £500m for the AI Research Resource, both announced less than a year ago.

 

Industry Reaction

 

The Department for Science, Innovation and Technology (DSIT) clarified that the funds were pledged by the previous government but never formally included in the budget. This move has faced criticism from industry leaders. Barney Hussey-Yeo, a tech business founder, expressed concerns on X about the potential of driving entrepreneurs to the US. Chris van der Kuyl, a prominent businessman, labeled the decision as “idiotic.”

TechUK, a leading trade body, warned that the UK might lag behind other nations if new proposals are not promptly introduced. DSIT, however, defended the decision, citing the necessity of difficult spending choices across all departments to restore economic stability and support growth.

 

Political and Institutional Responses

 

Secretary of State Peter Kyle has informed those affected by this budgetary decision. The Conservative Party, on the other hand, claimed that under its leadership, DSIT had underspent its budget. Shadow secretary Andrew Griffith emphasized the Conservatives’ strong commitment to science, research, and innovation, including AI leadership.

The future of the exascale supercomputer project at Edinburgh University remains uncertain. The University, having already invested £31m in preparatory housing, described the project as a priority. Professor Sir Peter Mathieson, Principal and Vice-Chancellor, is seeking an urgent meeting with Mr. Kyle to discuss the situation.

 

Importance of Exascale Supercomputing

 

The exascale supercomputer was set to be a groundbreaking machine, 50 times faster than any existing computer in the UK. It was intended to support advancements in various fields, including AI, drug discovery, climate change, astrophysics, and advanced engineering. The University of Edinburgh has long been a leader in UK supercomputing and is prepared to collaborate with the government to advance this technology.

Angus Robertson MSP, the Scottish government’s Cabinet Secretary for the Constitution, External Affairs, and Culture, termed the development as “bad news.”

 

Future Directions

 

Sue Daley, director of technology and innovation at techUK, emphasized the necessity for new strategic plans. She highlighted the critical role of large-scale computing investments in driving scientific breakthroughs and economic growth. Daley urged the government to act swiftly to maintain the UK’s competitive edge in global tech research.

In a related announcement, DSIT recently tasked Matt Clifford, one of the organizers of the inaugural AI Safety Summit at Bletchley Park, with developing an action plan to identify new AI opportunities, including infrastructure.

 

Sir Keir Starmer has cancelled tech plans announced under the previous Conservative government

 

The tech sector’s significance to the UK economy is underscored by a recent Tech Nation report valuing it at $1.1 trillion (£863bn) in early 2024. Labour’s prioritization of economic growth further amplifies the importance of maintaining robust support for technological advancements.