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
* £10 million extra for UK Trade and Investment to help
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
"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,
"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
"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
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.
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Article Published/Sorted/Amended on Scopulus 2009-04-23 12:13:26 in Business Articles