The UK government has announced the cancellation of £1.3 billion in funding for technology and artificial intelligence projects that had been promised by the previous Conservative administration.

This decision impacts major initiatives, including plans for the UK’s first exascale supercomputer at the University of Edinburgh.

The Department for Science, Innovation and Technology (DSIT) confirmed that £800m earmarked for the Edinburgh supercomputer project and £500m for the AI Research Resource (AIRR) will not be allocated. The Labour government, which came to power in July, stated that these commitments were not included in the previous government's spending plans.

A DSIT spokesperson said, "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 University of Edinburgh had already invested £31 million in preparation for housing the exascale supercomputer, which was set to be 50 times faster than any existing machine in the UK. The university's principal and vice-chancellor, Professor Sir Peter Mathieson, is urgently seeking a meeting with the science secretary, Peter Kyle, to discuss the project's future.

The decision has drawn criticism from industry leaders and opposition politicians. Andrew Griffith, shadow science secretary, called it "a terrible blow to the UK tech sector" and warned it "could be just the start of Labour cuts."

Sue Daley, director of technology and innovation at techUK has urged the government to propose alternatives quickly. "In an extremely competitive global environment, the government needs to come forward with new proposals quickly. Otherwise, we will lose out against our peers," she said.

The move comes as part of broader spending reviews across government departments. Chancellor Rachel Reeves recently told MPs that the previous Conservative government had left a £22bn "black hole" in public finances, necessitating £3.1bn in "efficiency savings" across departments.

Despite the funding cuts, the government insists it remains committed to technological advancement. The DSIT spokesperson highlighted the launch of an AI Opportunities Action Plan, aimed at identifying ways to enhance compute infrastructure and support the new Industrial Strategy.

This decision raises questions about the UK's ability to compete globally in advanced computing and AI research. As other countries continue to invest heavily in these areas, the UK risks falling behind without swift action to address the funding gap.

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