Chancellor confirms R&D spending boost

Chancellor Gordon Brown has confirmed that the government will honour funding increases for science and engineering and has pledged increased investment for the future.

The government has launched a consultation with business, research foundations and the scientific community to develop the framework for a 10-year strategy of investment in science and engineering.

Brown said the ultimate purpose is to make Britain one of the most competitive locations for science, research and development (R&D) and for innovation.

"I can confirm that we will support our 10-year science strategy ... and that we will continue to work with leading science-based companies, the scientific community and research charities so that for the years from 2005-6 we can raise science funding as a share of national income," he said in a statement.

The government is holding talks with major companies, including AstraZeneca, Shell, Vodafone and Rolls-Royce, to determine how their commercial investment in R&D and innovation can partner public investment.

Science and innovation minister Lord Sainsbury added that maintaining the quality of British scientific innovation was vital in a global economic climate where outsourcing was becoming more significant.

"The UK needs to raise its innovation performance if it is to compete in the global economy with the low-wage emerging economies such as China and India," he said.

"The quality of our science and engineering is an important national asset. In recent years knowledge transfer from our universities has improved and business R&D is also now increasing, but we need to do more in both areas as well as making certain that our science and engineering base is properly funded."