By David Williams
25 March 2010The government has outlined investment plans to stimulate the UK economy by boosting innovative, high-tech industries.
Chancellor Alistair Darling used his Budget speech to announce a £270m ‘modernisation fund’ for universities, paying for an additional 20,000 places in vital science and technology degrees.
Underlining the importance of higher education to the recovery from recession, Darling also revealed that £25m of public money would be invested in a university enterprise capital fund. The cash would help institutions make money out of their innovations, he said.
Universities UK president Steve Smith hailed the proposals as ‘a tremendous outcome for the sector and a sound investment in the UK’s knowledge economy at this crucial time’.
However, the new investment comes a week after the Higher Education Funding Council for England revealed a £573m cut in university funding, bringing the total allocation down to £7.3bn.
Darling’s Budget also included plans for a £2bn green investment bank to provide capital for large-scale, low-carbon projects such as offshore wind farms. The taxpayer would contribute £1bn through the sale of public assets, including the Tote bookmakers, the student loan book and the Dartford crossing.
A £6-a-year tax on telephone land lines would pay for high-speed broadband infrastructure, while tax relief would be given to stimulate the £1bn-a-year video games sector.
