Spending Review: Extra TSB funding set to boost UK innovation

As part of the government's Spending Review, Osborne also pledged to increase science capital funding in real terms from £0.6billion in 2012/13 to £1.1bn in 2015/16. "Investment in science is an investment in our future," he commented. " So, yes, from the next generation of jet engines to cutting edge supercomputers, we say, 'keep inventing, keep delivering'. This country will back you all the way." Elsewhere, The Department for Business, Innovation and Skills faced a 6% cut in departmental spending, one of the lowest of any of the non-protected departments. Business Secretary Vince Cable voiced his approval of the chancellor's plans for his department, commenting: "I made it clear that I would fight for a deal that ensured the government had a credible growth story. "The settlement we've achieved for this spending round does exactly that by prioritising and protecting activities that are key to growth. We have secured a robust funding package for science and innovation, skills and apprenticeships and more money for the regional growth fund, creating jobs outside of London, and the Green Investment Bank." Terry Scuoler, chief executive of manufacturers' organisation the EEF, said the funding "demonstrates the importance that government is now placing on supporting innovation as well as science". However, he warned that it must not be followed by famine or uncertainty in the next Review. Scuoler's thoughts were echoed by that of Paul Everitt, chief executive of aerospace and defence trade organisation, ADS. He commented: "Crucially, the government has prioritised spending in the areas that will deliver a greater growth dividend. Investing in science and innovation, skills and export promotion is critical to create a strong more balanced economy. "However, the next Spending Review must give industry the certainty it needs to invest for the long term. We need to move away from the repeated salami-slicing of the same departments time after time to a longer term approach that puts all the options on the table. Government must take a hard look at the areas on which it should focus to create a modern, competitive economy."