Government will not "subsidise loss makers"

In his statement the chancellor said that Britain was "the best place in Europe to do business" with "world class companies in science and technology".

In his statement the chancellor said that Britain was "the best place in Europe to do business" with "world class companies in science and technology".

"We must put in place the long-term investment which is the precondition of a strong economy and of bridging the productivity gap with our competitors and avoid the short-termism of the past," insisted Mr Brown.

But he stressed that the Government will not "subsidise loss makers" or attempt to pick winners.

The science budget will increase by 5.4%. Trade Secretary Stephen Byers will announce new resources for the University Challenge Fund that commercialises inventions and for university-based Regional Enterprise Centres.

The budget for the new Small Business Service will rise from £197 million this year to £277 million by 2004.

"This will include a national internet service offering comprehensive business advice and a consultancy service for start-ups worth up to £2,000 for start-ups in high unemployment areas," said Mr Brown.

The Prime Minister will announce a new fund that will ensure all Government services are online by 2005.

Budgets for Regional Development Agencies will increase by £50 million a year by 2003-4.

The overall settlement for Scotland provides for an increase of £3.4 billion a year by 2003-4, an annual rise of 4.4%.

The Government will ensure funding for the European share of Objective One, Two and Three projects.

Funding for Wales will increase by 5.4% a year and allows for matched funding.

The management of the European Social Fund allocations for Wales of £149 million over three years will be transferred to the Welsh Assembly.