[ Research Homepage ] [ Budget 2006 ] [ Documenter Project ] [ Myths ]

Enterprise Capital Funds

Early stage investment is always a problem for entrepreneurial companies.  The government likes the idea of sharing private and public money. The fund will be able to invest a total of up to £30 million and will help bring forward innovative technologies that reduce natural resource use, improve energy efficiency, waste or pollution management. The idea started with the 2003 pre Budget report. The bidding process for the pathfinder funds finished in September 2005 and at the time of the budget no cash had been handed out but the legal documentation has been approved.

R&D Tax Credits

The existing R&D tax credit is to be extended costing the government another £15 million in 07-08 following recommendations in the Cox review -  a glossy brochure prepared speedily in November 2005 called "Cox Review of Creativity in Business: building on the UK’s strengths". Essentially Cox wanted to encourage take up. The idea presented in the budget is to take the scheme up to 250-500 employees subject to discussions with the European Commission.

Health Research Fund

All those biosciences graduates have to be mopped up somehow and Gordon proposes to create a single health research fund of at least £1 billion per year.