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UK Shelves £1.3bn in Technology and AI Funding

uk shelves 13bn in technology and ai funding business manchester

The UK government has decided to halt £1.3bn in funding for technology and AI projects.

This move raises concerns over the future of Britain’s first next-generation supercomputer.

Funding Decisions Impact AI and Technology Projects

The Labour government has put a stop to £1.3bn pledged by the former Conservative administration for technology and AI projects. This step threatens the planned creation of an exascale supercomputer at the University of Edinburgh and £500m allocated for the AI Research Resource.

The Department for Science, Innovation and Technology stated that these commitments were ‘unfunded’ and not included in previous spending plans. A spokesperson emphasized the necessity of making difficult spending decisions to restore economic stability and support national growth.

Funding Allocations and Continuing Projects

Despite the halt, about £300m in funding for the AI Research Resource has already been distributed. This part of the project will continue as planned, ensuring some progress in AI research.

Andrew Griffith, the shadow science secretary, stated that the Labour government’s cuts are a significant blow to the UK’s tech sector, accusing the government of failing to commit to increasing research spending, essential for modern economic growth.

Future of the Exascale Supercomputer Project

The funding freeze puts the future of the Edinburgh exascale supercomputer in jeopardy.

The University of Edinburgh was set to host the supercomputer, which would be 50 times faster than existing models.

This advanced machine was anticipated to perform 1 billion billion calculations per second, aiding research in AI, drug discovery, climate change, astrophysics, and engineering.

Actions and Reactions from Government Officials

Science Secretary Peter Kyle recently announced plans to prioritize AI to boost growth and improve public services. He appointed Matt Clifford, a tech entrepreneur, to draft an action plan identifying new AI opportunities.

The focus will be on necessary infrastructure, talent, and data access to drive AI adoption in public and private sectors.

However, the halt in funding raises questions about the feasibility of these initiatives without adequate financial backing.

Implications for University Research

Cutting the planned funding may also affect university research across the UK, as the AI Research Resource was a significant part of the overall project.

Griffith expressed concerns that the lack of Treasury funds could lead to a reduction in research activities, impacting the academic sector.

Broader Context of Economic Stability

The government contends that these financial decisions are crucial for restoring economic stability and achieving growth.

They argue that taking essential austerity measures across all departments can prevent deeper financial crises in the future.

Conclusion of Long-Term Projects at Stake

As the funding halt is felt across tech projects, the long-term prospects of initiatives like the exascale supercomputer remain uncertain.


The decision to halt £1.3bn in funding for technology and AI projects has far-reaching implications.

The UK’s ambition in cutting-edge research and technological leadership faces a critical challenge.

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