London — The UK government has halted £1.3 billion ($1.66 billion) in funding for technology and artificial intelligence (AI) projects initiated by the previous Conservative administration. The move affects major initiatives including the exascale supercomputer planned for the University of Edinburgh and the AI Research Resource (AIRR).

Last year, the Conservative government had committed £800 million ($1.02 billion) for the exascale supercomputer and an additional £500 million ($637.2 million) for AIRR. However, the newly elected Labour government, which came into office in July, has decided not to proceed with these projects, citing a lack of new funding allocated in the previous administration’s spending plans.

The University of Edinburgh’s Advanced Computing Facility (ACF) was set to host the UK’s first exascale computer, scheduled to be operational by 2025. The university has already invested £31 million ($38 million) in constructing a new wing for its EPCC purpose-built ACF. The future of this project remains uncertain following the funding withdrawal.

In a statement to MPs in the House of Commons on July 30, Chancellor Rachel Reeves highlighted a £22 billion ($28.04 billion) “black hole” left in public finances by the previous government. She announced that government departments would need to find £3.1 billion ($3.95 billion) in “efficiency savings” as part of efforts to address the fiscal gap.

A spokesperson for the Department for Science, Innovation, and Technology responded, emphasizing the government’s commitment to developing technology infrastructure that fosters growth and opportunity across the UK. The spokesperson stated, “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 also noted the launch of the AI Opportunities Action Plan, aimed at enhancing the UK’s computing infrastructure and aligning it with emerging technologies and the new Industrial Strategy.

In a related development, the UK government recently announced a £100 million ($129 million) investment to establish five new quantum research hubs in Glasgow, Edinburgh, Birmingham, Oxford, and London.