The Labour government has decided to halt £1.3bn of funding previously promised by the Conservatives for technology and Artificial Intelligence (AI) projects.
This decision has led to significant criticism from industry leaders and concerns about the future of the UK's tech sector.
Key Takeaways
- £1.3bn funding for tech and AI projects shelved by the Labour government.
- £800m was allocated for an exascale supercomputer at Edinburgh University.
- £500m was earmarked for AI Research Resource.
- Industry leaders express concerns over the decision.
- Government defends the move as necessary for economic stability.
Funding Details
The shelved funding included £800m for the creation of an exascale supercomputer at Edinburgh University and £500m for the AI Research Resource, which funds computing power for AI. These funds were announced less than a year ago by the previous Conservative government.
Government's Stance
The Department for Science, Innovation and Technology (DSIT) stated that the money was promised by the previous administration but was never allocated in its budget. The government defended its actions, stating that difficult and necessary spending decisions are essential to restore economic stability and deliver the national mission for growth.
Industry Reaction
The decision has been met with significant criticism from industry leaders. Tech business founder Barney Hussey-Yeo warned that reducing investment could push more entrepreneurs to the US. Businessman Chris van der Kuyl described the move as "idiotic." Trade body techUK urged the government to make new proposals quickly to avoid losing out to other countries in crucial future industries.
Impact on Edinburgh Supercomputer
The future of the Edinburgh exascale supercomputer is now uncertain. The University of Edinburgh had already spent £31m building housing for the supercomputer, which was expected to be 50 times faster than any current computers in the UK. The university is urgently seeking a meeting with the Secretary of State to discuss the project's future.
Future Steps
Last week, DSIT announced that Matt Clifford, one of the organisers of the inaugural AI Safety Summit held at Bletchley Park in November 2023, had been asked to draw up an action plan for identifying new AI opportunities, including infrastructure. The tech sector is considered a valuable part of the UK economy, with a market value of $1.1 trillion (£863bn) in the first quarter of 2024.
Conclusion
The shelving of £1.3bn in funding for tech and AI projects by the Labour government has sparked significant backlash from industry leaders and raised concerns about the future of the UK's tech sector. While the government defends the move as necessary for economic stability, the industry is calling for new proposals to ensure the UK remains competitive in crucial future industries.
Sources
- Government shelves £1.3bn UK tech and AI plans, BBC.
- UK shelves £1.3bn of funding for technology and AI projects | Technology sector | The Guardian, The Guardian.
- Government shelves £1.3bn UK tech and AI plans, Yahoo.
- Government Shelves £1.3 Billion UK Tech, AI Plan | Silicon UK, Silicon UK.
- Government shelves £1.3bn UK tech and AI plans, Kenya Broadcasting Corporation.
