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UK government withdraws £1.3 billion from technology and AI funding

In this post:

  • The UK government has reduced funding for technology and AI projects by £1.3 billion.
  • It also pulled the £500 million additional funding for the AI Research Resource scheme.
  • Future investments in computing resources will be made under the new AI Opportunities Action Plan. 

The UK government has indefinitely suspended £1.3 billion in funding previously promised for technology and artificial intelligence projects. This move impacts several high-profile initiatives, including those in Scotland. 

The Labour government declared that the funding which was initially provided by the Conservative government would be stopped. This decision also includes the cancellation of the $1.2 billion plan to construct an exascale supercomputer at the University of Edinburgh. 

Read more: UK government withdraws £1.3 billion from technology and AI funding

UK AI research resource faces £500 million budget cut

The supercomputer was supposed to help the development of artificial intelligence, medicine, and renewable energy. The plan was announced back in October 2023 and targeted the creation of a computer that would be a significant leap in computing power. 

Additionally, £500 million earmarked for the AI Research Resource has been eliminated from the list of expenditures. The fund was set aside for building supercomputers with a view to enhancing Artificial Intelligence research.

The DSIT has noted that the funds were assured by the previous administration but were not factored into the current fiscal plan. The DSIT further said that these are some of the measures that have been undertaken to address unfunded commitments and restore the economy.

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In reaction to the funding cuts, a spokesperson for the university said

“We are ready to work with the government to support the next phase of this technology in the UK, in order to unlock its benefits for industry, public services, and society.”

The ExCALIBUR program of the University of Edinburgh was slated to receive £45.7 million in funding, with expectations to further enhance fields such as drug and vaccine discovery, climate and weather modeling, and nuclear fusion. The university had planned to commence the first phase of the project in 2025. According to BBC reports, the university has already spent £31 million on the project so far.

New AI action plan contrasts with funding cuts

The funding suspension comes amidst changes in the government’s policy on AI. The UK Science Secretary Peter Kyle on the 26th of July stressed the need to prioritize AI in government. The government also named Matt Clifford, a tech entrepreneur, to spearhead the new AI Opportunities Action Plan. 

Furthermore, Andrew Griffith, the Conservative shadow science, innovation, and technology secretary, criticized the decision made by the Labour Government. He also said that Labour has “lower expectations” for the UK tech industry and further added that the last government had set the record in spending on research. Griffith also pointed out that the Conservatives had intended to raise this funding by a further 10% for several initiatives.

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