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Budget - New investment fund to back British business

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Issued 22 APRIL 2009

A 750 million strategic investment fund for backing business to come out stronger from the downturn has been announced in today's budget. The fund for "New Industry, New Jobs" provides resources for the new competitiveness strategy published on Monday.

It will include:

* 250 million to invest in low carbon business opportunities and innovation. This will include initiatives on low carbon vehicles, as well as the nuclear and renewable energy industries.

* 50 million extra for the Technology Strategy Board to significantly expand its work with business, fostering innovation and new technologies.

* 10 million extra for UK Trade and Investment to help exporters.

Today's announcement comes on top of measures already announced to help businesses including:

* 2.3 billion via automotive assistance programmes
* 1bn Enterprise Finance Guarantee
* 10bn Working Capital Scheme to help free up working capital for SMEs

Business Secretary, Lord Mandelson, said:

"Today's Budget for Business is about investing and securing our future.

"The new fund to back "New Industry, New Jobs" will support businesses in Britain build their strengths in innovation, R&D and skills. It's a fund to equip Britain to win as low carbon, knowledge economy.

"Backing green, low carbon businesses and technologies will be a priority for the new fund. Ed Miliband and I are determined British business should be world leaders in the technologies and services the world will need as we use energy more efficiently and combat climate change.

"Britain doesn't need to be pessimistic about our economic future as long as we prepare for it. The new fund announced today is a big step forward."

The Budget also announced extra help for the car industry. A car and van scrappage scheme will provide immediate, targeted support on a short-term basis to boost the automotive manufacturing industry, retailers and the auto supply chain which have been badly impacting by falling vehicle sales. This will remove older vehicles from the road and encourage consumers to buy newer, more environmentally-friendly models.

Notes

1. A copy of Building Britain's Future - New Industry, New Jobs can be found at http://www.berr.gov.uk/files/file51023.pdf.

2. The strategic investment fund of 750 million will be available to the Department for Business over two years, (400 million 2009/10; 350 million 2010/11) to meet immediate business needs. A further 300 million will also be available to operate a tightly focussed car and van scrappage scheme.


About the Author

Crown Copyright. Material taken from the BERR- Department for Business, Enterprise and Regulatory Reform replacing DTI - Department for Trade and Industry. Reproduced under the terms and conditions of the Click-Use Licence.


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Article Published/Sorted/Amended on Scopulus 2009-04-23 12:13:26 in Business Articles

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