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Spending Review to include £86bn for science and tech

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Marc Ashdown

Business correspondent

Getty Images Scientists in white protective clothing are seen working among computers and large machines.Getty Images

Areas like Newport in Wales, home to the UK’s biggest semiconductor manufacturing facility, will be allowed to decide how investment is targeted in their communities.

The government has said it will spend £86bn on the science and technology sector by the end of this Parliament, ahead of Wednesday’s Spending Review.

The package will help fund research into drug treatments and longer-lasting batteries, and include up to £500m for regions across the UK with local leaders having a say on how it is spent.

Chancellor Rachel Reeves, whose review will outline day-to-day departmental and investment budgets over the next few years, said investing in the sector would create jobs and boost security.

But research backers have warned that the government needs to do more to secure the UK’s reputation for science on the world stage.

Reeves will set out departmental spending plans on Wednesday, with the package for science and technology expected to be worth more than £22.5 billion-a-year by 2029.

The Department for Science, Innovation and Technology said “every corner of the country” would benefit, with communities able to direct funding to expertise specific to their areas.

In Liverpool, which has a long history in biotech, funding will be used to speed up drug discovery. Northern Ireland will receive money to develop defence equipment, while south Wales will use the money to design microchips used to power mobile phones and electric cars.

The chancellor said: “Britain is the home of science and technology. Through the plan for change, we are investing in Britain’s renewal to create jobs, protect our security against foreign threats and make working families better off.”

Tony McBride, director of policy and public affairs at the Institute of Physics, welcomed the funding but said the government would need to commit to a decade-long plan to train workers.

“This must include a plan for the skilled workforce we need to deliver this vision, starting with teachers and addressing every educational stage, to underpin the industrial strategy,” he said.

John-Arne Rottingen, chief executive of Britain’s biggest non-governmental research funder Wellcome, warned that visa costs for scientists from overseas, financial challenges at universities and a budget that was not adjusted for inflation could hamper the government’s ambitions.

“The UK should be aiming to lead the G7 in research intensity, to bring about economic growth and the advances in health, science and technology that benefit us all.”

Getty Images Rachel Reeves, a woman in her 40s with medium-length brown hair, is wearing a blue suit.Getty Images

The chancellor has warned that her Spending Review will reflect a squeeze on government funding.

The shadow technology secretary, Alan Mak, said the investment for the sector seemed to be a “copy and paste” of Conservative plans set out in its manifesto last year.

“As Labour and Reform squabble over how to spend more taxpayers money, only the Conservatives are creating a serious plan for government to deliver growth and give you your country back,” he added.

Earlier this week, Reeves admitted that not every government department would “get everything they want” in Wednesday’s review, saying she had turned down requests from ministers and argued a squeeze on funding was a “product of economic reality”.

Reeves said her fiscal rules on borrowing to pay for public services were “non-negotiable” and insisted they were necessary because of “Conservative maltreatment” of the economy.

The Treasury said earlier this year that the chancellor’s fiscal rules would ensure day-to-day spending was matched by tax revenues, meaning the government would only borrow to invest.

Big chunks will go to favoured departments, with suggestions of an extra £30 billion for the NHS over three years.

Whitehall insiders have told the BBC they expect the spending review will be “ugly”, and that ministers have been fighting over winning small amounts of cash for their respective departments.

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FedEx founder and former CEO Fred Smith dies aged 80

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Fred Smith, founder of the US parcel delivery giant Federal Express, has died at the age of 80, the company has announced.

Mr Smith founded the firm in 1973 having previously served in the US Marine Corps. He ran the company as CEO until 2022.

“Fred was more than just the pioneer of an industry and the founder of our great company. He was the heart and soul of FedEx,” current boss Raj Subramaniam wrote in a memo to staff.

Born in 1944, Mr Smith started FedEx with 389 staff and 14 small planes that carried 186 packages from Memphis to 25 cities within the US.

FedEx now has more than 500,000 employees across the globe and delivers millions of packages a day.

Its operations involve 705 aircraft and 200,000 vehicles, according to its website.

“He was a mentor to many and a source of inspiration to all. He was also a proud father, grandfather, husband, Marine, and friend,” Mr Subramaniam said.

Mr Smith joined the US Marine Corps as a second lieutenant after graduating from Yale University.

He served two tours in Vietnam and was awarded medals for bravery and wounds received in combat before leaving the military as a captain in 1969.

Mr Smith used a business theory he came up with while at Yale to create what is now known as a hub and spoke delivery system.

Such a network relies on co-ordinated cargo flights centred around a main hub – which Mr Smith set up in Memphis, Tennessee, which remains FedEx’s base.

While well known in Memphis, Mr Smith lived a life relatively out of the spotlight – although he did make a cameo appearance in the Tom Hanks movie Castaway in which a FedEx employee is stranded on an island after a plane crash.

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Big Venture Centre stepping in where ‘everyone is struggling’

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Josh Sandiford

BBC News, Wolverhampton

BBC Jane Platt in a bright pink polo shirt. It says Big Venture Centre. Her lanyard says the same. She has glasses and is smiling. There are lots of clothes on a big rack behind her. BBC

Jane Platt is a volunteer helping others even though she is struggling herself

Jane Platt’s bright pink polo shirt marks her out as a volunteer at the Big Venture Centre.

The community shop provides discounted items and other help to people living in some of the most deprived areas of Wolverhampton.

Places like Bushbury, Heath Town and Low Hill, where Ms Platt believes “everyone is struggling”, including herself.

The local council insists it is there for those who need support, but some living in the areas say they feel forgotten.

“My baby won’t play out in the streets,” explained Ms Platt, who lives near the Scotlands Estate.

The Big Venture Centre is a single-storey yellow building. Some of the paint has chipped away. One of its white doors also looks like a little old and tired. The sign says: Big Venture Centre. Community Shop Inside.

The Big Venture Centre helps people with discounted items and other support

The 45-year-old has been volunteering at the centre for years and said it helped her gain skills and look after her own mental health.

But she claimed it was also one of the only places she felt safe in the area.

“You can’t look at people when you [are out],” Ms Platt said.

“I try and look the opposite way because you just don’t know what they’re going to say.”

Tracey Walters smiling for the camera. There is a grassy area behind her with daffodils. She is wearing a nike jacket and a grey t-shirt underneath. She is wearing her hair as a bun on top of her head.

Tracey Walters likes living in the area but said there was scope for improvement

Tracey Walters, a resident being supported by the Big Venture Centre, was born in the area.

The 61-year-old said she liked living there but felt it had been “forgotten” about.

She demanded more activities for younger children on the estate, and was also concerned about rubbish.

“I don’t think Wolverhampton Council care about this area,” she said.

The council said there was more than £121,000 in funding for children in the Scotlands during the school holidays, adding it received regular litter picks and sweeps.

A woman holding a shopping trolley. It is grey. We can see her hands gripping on and her veins. There is a concrete floor in the background.

One woman asked not be named but said the area was “scruffy”

The local authority also insisted 112 jobs involving roads and street lighting had been carried out.

But another centre user, who asked not to be named, said it looked “scruffy”.

The woman, who has lived in the area all her life, said drugs and other forms of anti-social behaviour were a big problem, often because young people did not have anything to do.

“It used be nice area at one time but there’s nothing left,” she claimed.

“It’s just empty houses that get smashed up. You find needles on the floor [and] nobody cares.”

A sign for the Big Venture Centre. There is a grassy area behind with daffodils. We can also see a residential road with some houses in the background.

The council said it was working to make sure no residents were left behind

Despite the issues, volunteer director David Chadwick insisted the Scotlands was a place where “everybody will help everybody”.

“Without us a lot of families would suffer and that’s why we’re here,” he said.

City of Wolverhampton Council said it was working with police and other organisations to make sure the area was safe and nobody was “left behind”.

“The council has awarded millions of pounds in regeneration grants in the area and created The Big Venture centre by a community asset transfer,” a spokesperson said.

“We hold regular community resident meeting where people can talk directly to the council.”

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BBC threatens AI firm with legal action over unauthorised content use

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Liv McMahon

Technology reporter

Getty Images A silhoutted figure is shown holding their smartphone and looking at it in front of a white background displaying the Perplexity logo.Getty Images

The BBC is threatening to take legal action against an artificial intelligence (AI) firm whose chatbot the corporation says is reproducing BBC content “verbatim” without its permission.

The BBC has written to Perplexity, which is based in the US, demanding it immediately stops using BBC content, deletes any it holds, and proposes financial compensation for the material it has already used.

It is the first time that the BBC – one of the world’s largest news organisations – has taken such action against an AI company.

Perplexity has been approached for comment.

The BBC’s legal threat has been made in a letter to Perplexity’s boss Aravind Srinivas.

“This constitutes copyright infringement in the UK and breach of the BBC’s terms of use,” the letter says.

The BBC also cited its research published earlier this year that found four popular AI chatbots – including Perplexity AI – were inaccurately summarising news stories, including some BBC content.

Pointing to findings of significant issues with representation of BBC content in some Perplexity AI responses analysed, it said such output fell short of BBC Editorial Guidelines around the provision of impartial and accurate news.

“It is therefore highly damaging to the BBC, injuring the BBC’s reputation with audiences – including UK licence fee payers who fund the BBC – and undermining their trust in the BBC,” it added.

Web scraping scrutiny

Chatbots and image generators that can generate content response to simple text or voice prompts in seconds have swelled in popularity since OpenAI launched ChatGPT in late 2022.

But their rapid growth and improving capabilities has prompted questions about their use of existing material without permission.

Much of the material used to develop generative AI models has been pulled from a massive range of web sources using bots and crawlers, which automatically extract site data.

The rise in this activity, known as web scraping, recently prompted British media publishers to join calls by creatives for the UK government to uphold protections around copyrighted content.

Many organisations, including the BBC, use a file called “robots.txt” in their website code to try to block bots and automated tools from extracting data en masse for AI.

It instructs bots and web crawlers to not access certain pages and material, where present.

But compliance with the directive remains voluntary and, according to some reports, bots do not always respect it.

The BBC said in its letter that while it disallowed two of Perplexity’s crawlers, the company “is clearly not respecting robots.txt”.

Mr Srinivas denied accusations that its crawlers ignored robots.txt instructions in an interview with Fast Company last June.

Perplexity also says that because it does not build foundation models, it does not use website content for AI model pre-training.

‘Answer engine’

The company’s AI chatbot has become a popular destination for people looking for answers to common or complex questions, describing itself as an “answer engine”.

It says on its website that it does this by “searching the web, identifying trusted sources and synthesising information into clear, up-to-date responses”.

It also advises users to double check responses for accuracy – a common caveat accompanying AI chatbots, which can be known to state false information in a matter of fact, convincing way.

In January Apple suspended an AI feature that generated false headlines for BBC News app notifications when summarising groups of them for iPhones users, following BBC complaints.

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