In October last year, the University of Edinburgh announced that the UK’s first next-generation supercomputer which is fifty times faster than any of the UK’s existing machines, would be hosted by the university.

The Department for Science, Innovation and Technology (DSIT) at the university said the funding had been promised by the previous administration but was never allocated in its budget, the Scotsman reports. 

Sandy Begbie CBE, chief executive of Scottish Financial Enterprise, said: “The UK government’s decision to withdraw funding for the Edinburgh exascale supercomputer is deeply disappointing and represents a major blow to Edinburgh’s ambition to be a global centre of excellence in data, AI and emerging technologies.

“The £800m investment was set to be a huge boost to Scotland’s digital capabilities, driving investment and growth in sectors like financial services, which are increasingly focused on technology.

“Scotland’s financial services industry has the potential to add between £4 billion - £7bn to the Scottish economy over the next five years, but in order to achieve this, investment in our universities and our digital capability is vital.

“Other major financial centres are investing in this area and this decision runs the risk of us losing ground and future investment.

“The University of Edinburgh has already spent £31m on the project. At a time when our universities are under increasing financial stress, this decision will add to a feeling of uncertainty which is holding back our higher education sector and the broader economy.”

Furthermore, a senior SNP minister has urged that the “shocking” decision will damage Edinburgh and Scotland’s economy. Constitution secretary Angus Robertson, the SNP Edinburgh Central MSP who represents Edinburgh University, said he had sought a meeting with First Minister John Swinney to discuss the “damaging decision” and wants a U-turn on the cut from Labour.

Mr Robertson said it is terrible news that UK Labour is cutting a project for Edinburgh worth nearly £1bn. He said: “It is absolutely shocking, short-sighted and damaging to Edinburgh and Scotland’s economy, education and tech sector. Edinburgh University has built a world-class reputation and was set to drive forward plans for Edinburgh and the Lothians to become Europe’s leading data capital and a centre for research, development and innovation.

“I will be seeking the earliest possible meeting with First Minister John Swinney and Cabinet Secretary for Economy Kate Forbes to discuss this damaging decision for Edinburgh by the new UK Labour government and seek the earliest possible U-turn.”