Labour axes £1.3bn AI funding promised by the Conservatives

The new Labour government has decided to get rid of two tech and artificial intelligence (AI) funds, which were launched by the previous Conservative government in 2023.

One of the programmes being axed is funding for the build of an exascale supercomputer at Edinburgh University, a project which had been given £800m in the 2023 Budget. The project was funded after recommendations in the Future of compute review for an exascale supercomputer. 

The other fund being scrapped was also announced in the 2023 budget. The government allocated funding up to the region of £900m for the AI Research Resource. The project has already received £300m in funding, but the government committed to a further £500m in the 2023 Autumn Statement. The two projects were to “allow researchers to better understand climate change, power the discovery of new drugs and maximise our potential in AI”, according to the Budget 2023 Red Book.

However, the Department for Science, Innovation and Technology (DSIT) said there was no funding allocated for the supercomputer in the previous government’s spending plans, and while £300m has already been distributed for the AI Research Resource, the further funding would not be coming.

A DSIT spokesperson said the government is “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,” the spokesperson said.  

“We have launched the AI Opportunities Action Plan, which will identify how we can bolster our compute infrastructure to better suit our needs and consider how AI and other emerging technologies can best support our new Industrial Strategy.”

The AI Opportunities Action Plan was launched 26 July 2024 and aims to build an AI sector that can “scale and be competitive globally”. It will be led by Matt Clifford, tech entrepreneur and chair of Aria.

As well as exploring how to build a UK AI sector that can scale and compete on the global stage, the government hopes to use the plan to increase the adoption of AI technology across all parts of the economy. It is expected to consider the necessary infrastructure, talent and data access required to drive adoption by the public and private sectors.

Trade body techUK’s director of technology and innovation, Sue Daley, said it is looking for the government to come up with new plans quickly if the UK is to stay on top of its game.

“Investment in large scale computers is vital for the scientific breakthroughs that will grow our economy and improve our lives. The UK had sent clear signals about its ambitions to host a new generation of computers to enable cutting-edge research, including in AI,” she said.

“In an extremely competitive global environment, the government needs to come forward with new proposals quickly. Otherwise, we will lose out against our peers.”

DSIT said it would consider future investment in computing infrastructure following the development of the AI Opportunities Action Plan.