Budget Statement

In his Budget Statement on 24 March, Chancellor of the Exchequer Alistair Darling said:

• Having come through this global recession, this Budget will set out a route for the county to long-term prosperity.
• At its heart is a £2.5bn one-off growth package - to help small business, promote innovation, invest in national infrastructure and key skills.
• From advanced manufacturing to pharmaceuticals, from digital communications to creative arts - it is the ideas that drive their success.
• Building on the Hauser Review, we will ensure that the UK's Technology and Innovation Centres achieve their potential to commercialise new British discoveries.
• We have also strengthened the links between our universities and business to ensure ideas are harnesses for commercial success.
• But we need to do more. So we will set up a £35m university enterprise capital fund, to provide direct support for university innovation and spin-out companies.

Budget Report

The Budget Report is available online and includes the following:

• Hauser Review: The UK is a world leader in research, but the Hauser review, which was published on 25 March 2010, has identified a strategic gap in commercialising this knowledge. It recommends that the Government should capitalise on the UK's research strengths by providing focused investment in a new model for Technology and Innovation Centres. These centres aim to research, prove and develop technologies where the UK has world-leading expertise and which provide the greatest opportunity for future growth. The Governemtn will take forward the recommendation and develop a strategy by the 2010 Pre-Budget Report that identifies key strategic technologies and outlines a 10 year vision for the UK.
• In support of its strategy to maintain world-class Higher Education, the Governemtn welcomes the approval of £350million from the European Investment Bank (EIB) to finance Higher Education construction and improvement works, including science parks and incubators, through Barclays Bank.
• The future success of UK companies in winning business in global markets will depend on their ability to innovate and to take advantage of the UK's world-class research base. Following this Budget, an update on Building Britain's Future: New Industry, New Jobs one year on will outline progress on the Government's strategy to support the development of key sectors of the economy. This Budget also announces measures to support universities and encourage innovation, to facilitate the commercialisation of research and intellectual property, and to improve skills in the key jobs and industries that will drive the UK's future growth.
• Budget 2010 announces a spending package of £385 million to support university places and innovation, of which £150 million is from reprioritisation, and a package of £385 million for investment in transport, of which £80 million is from reprioritisation.
• Supporting business and growth, by measures to support start-ups and small and medium sized enterprises (SMEs), to position the UK as a leading centre for research and innovation, and to ensure that the UK is equipped with the infrastructure it needs to be successful in a low-carbon economy.
• This Budget announces the launch of UK Finance for Growth (UKFG), which will be responsible for overseeing the Government's stock of over £4 billion of SME finance products, including the Growth Capital Fund. UKFG will streamline and simplify the Government's finance support for business, and provide a strong channel for private sector investment into SME-focused funds. It will work in partnership with the Department for Business, Innovation and Skills (BIS), the Department of Energy and Climate Change (DECC) and Regional Development Agencies to co-ordinate public equity SME finance schemes, including the UK Innovation Investment Fund and its low-carbon focused fund-of funds, and Carbon Trust venture capital activities. This will ensure that government-backed funds form a single, coherent portfolio and that there is a consistent government package of support for viable businesses, wherever they are in the country and whatever stage they are at on their growth path.
• Patent Box: Government is committed to ensuring the UK remains an attractive location to invest in ans exploit innovation. Building on a range of policies already in place to support the UK's innovative industries, the 2009 Pre-Budget Report announced the introduction of a Patent Box, applying a 10 percent corporation tax rate to income from patents fro m April 2013. The Government will work with businesses to design a practical and competitive regime for patents to support the UK's strengths in innovative industries. This will include looking at how to identify and value embedded patent income and how to give relief to acquired patents. In addition to patents granted after legislation is passed in 2011, the consultation will also consider how to include patents not yet commercialised at that point, and how the regime will apply to equivalent overseas patents held by UK companies. The Government will consult with business during summer 2010 on this basis.
• UK universities are among the best in the world. To further exploit their commercial potential, the Government will invest up to £25 million in a University Enterprise Capital Fund, through UK Finance for Growth, which will provide crucial early stage funding for the commercialisation of some of the most promising university innovations. This will draw in private funding of at least £10million, giving universities more opportunities to develop and demonstrate their innovative techniques and processes.

Budget Statement:

http://www.hm-treasury.gov.uk/budget2010_speech.htm

Budget Report:

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digital asset/dg_186437.pdf