Budget 2009: Focus on digital sector to drive future growth
THE Government is to extend its support for digital and emerging industries, with the announcement of multi-billion pound initiatives in today’s Budget.
Chancellor Alistair Darling has announced a £10bn investment in what he called the “vitally important” communications sector, with a further £750m Strategic Investment Fund to provide financial support for emerging technologies in the manufacturing, digital and biotechnology sectors.
Digital Region, a £100m project led by Yorkshire Forward that will roll-out next-generation broadband to South Yorkshire was also approved.
He said: “It is vital to ensure that the entire country and the economy benefits from the digital age so I am allocating extra funding for digital investment and I’ll be extending the broadband network to almost every community.
“This will allow us to deliver the vision set out in the Digital Britain report – making sure everyone can benefit from this communications revolution and create thousands more skilled jobs.”
The £10bn will be used to pursue universal service in broadband at 2 megabits per second alongside further support to promote broadband take-up and basic digital skills.
There will also be a review of the powers and duties of Ofcom. The government said this is to ensure it can strike the right balance between delivering competition and promoting investment.
Mr Darling said the Strategic Investment Fund would encourage exports, support inward investment, promote research and development and help to commercialise work that comes out of the country’s “world-class” science base.
The fund which will support advanced industrial projects of strategic importance, with £250m earmarked for low carbon investments. It also includes £50m for the Technology Strategy Board and £10m for UK Trade and Investment.
Mr Darling added that the investment fund would complement the two new City Region Pilots, in Manchester and Leeds, which he said will also have a major role in promoting economic investment.
