Gordon Brown reiterated the government's aim to make Britain "the world's leading location for research-based, science-based and knowledge-based industries". But the Budget contained few measures to promote science and innovation that had not already been announced.

One is a mandatory target for every government department and public sector body to direct at least 2.5 per cent of its external R&D spending to small companies. Mr Brown said this would "stimulate small technology-intensive companies with a guaranteed £100m share of public sector research contracts". The Treasury says that only half of departments and agencies achieve this target today.