Labour has backtracked on a decision to scrap funding for the development of a supercomputer to be housed at the University of Edinburgh, confirming a new investment of up to £750 million. 

As part of the government’s spending review, chancellor Rachel Reeves will commit to supporting a new national supercomputer at the Scottish university. 

The government abandoned funding for the project last August, describing the move as a “difficult decision” in the “face of billions of pounds of unfunded commitments”. 

Now, Reeves has confirmed that money will be spent on scaling up the country’s computing capabilities.

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In a statement, policymakers said the project would give “scientists across the UK access to compute power found in only a handful of other nations”. 

Edinburgh, which had already built a £31 million facility to house the supercomputer when the funding was axed, welcomed the U-turn. 

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“This significant investment will have a profoundly positive impact on the UK’s global standing, and we welcome the vast opportunities it will create for research and innovation,” said Peter Mathieson, principal and vice-chancellor of the University of Edinburgh.

“This powerful supercomputer will drive economic growth by supporting advancements in medicine, bolstering emerging industries and public services, and unlocking the full potential of AI.”

Reeves said the government is “investing in Scotland’s renewal”.

“Strong investment in our science and technology sector is part of our Plan for Change to kickstart economic growth, and as the home of the UK’s largest supercomputer, Scotland will be an integral part of that journey,” she said. 

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It comes as the chancellor prepares to unveil the government’s spending plans for the next three years, with some departments expecting significant funding cuts in the face of a fiscal deficit.

Earlier this week, Labour announced plans to spend more than £22.5 billion on research annually by the end of the decade, as well as shifting £500 million into a new Local Innovation Partnerships Fund, which will give elected mayors a say on how the money is used.

Reeves said on 8 June that the Westminster government would invest £86 billion in research and development over the next four years, but sector groups have pointed out that the plans are “broadly flat in real terms”.

helen.packer@timeshighereducation.com