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| Version 2 | Version 3 |
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| New start-up investor considered | New start-up investor considered |
| (about 1 hour later) | |
| The government is considering setting up a new bank to invest in start-up and high risk business ventures. | The government is considering setting up a new bank to invest in start-up and high risk business ventures. |
| Prime Minister Gordon Brown said he would look at the case for setting up such a bank, targeting hi-tech firms. | Prime Minister Gordon Brown said he would look at the case for setting up such a bank, targeting hi-tech firms. |
| He said the proposed bank would "provide the finance for more difficult and more risky start-ups for high-technology businesses of the future". | He said the proposed bank would "provide the finance for more difficult and more risky start-ups for high-technology businesses of the future". |
| Earlier a business investment group warned that many young high-tech companies were under threat. | Earlier a business investment group warned that many young high-tech companies were under threat. |
| The National Endowment for Science, Technology and the Arts (Nesta) said government funding was needed as the credit crunch threatened a generation of small high-tech companies. | The National Endowment for Science, Technology and the Arts (Nesta) said government funding was needed as the credit crunch threatened a generation of small high-tech companies. |
| It said that there was a 70% fall in new venture capital funding last year and warned that the UK could lose its global standing in areas such as healthcare and biotechnology. | It said that there was a 70% fall in new venture capital funding last year and warned that the UK could lose its global standing in areas such as healthcare and biotechnology. |
| Nesta called on the government to go half-and-half with the private sector to provide £1bn for high-tech investment. | Nesta called on the government to go half-and-half with the private sector to provide £1bn for high-tech investment. |
| 'Industrial renewal' | 'Industrial renewal' |
| Prime Minister Gordon Brown said he would be examining the case for setting up "a bank for industry and innovation". | Prime Minister Gordon Brown said he would be examining the case for setting up "a bank for industry and innovation". |
| One of the options to be considered would be a public-private partnership scheme similar to the Industrial and Commercial Finance Corporation (ICFC). | |
| The ICFC was a partnership between the Bank of England and major banks, set up in 1945 to provide funding for small and medium-sized companies. | |
| Last month, Richard Lambert, head of the employers' group the CBI, called for an investment corporation like the ICFC to be set up. | |
| All departments | |
| The prime minister made the announcement while launching a report called New Industry New Jobs, which said that government needed to recognise the impact that decisions on taxation and spending have on the development of British businesses. | |
| "This means making Britain's economic and industrial renewal the remit not just of the Department for Business, but of all Government departments," the report said. | "This means making Britain's economic and industrial renewal the remit not just of the Department for Business, but of all Government departments," the report said. |
| The government has said that decisions on the funding of academic research will take greater account of its economic impact. | The government has said that decisions on the funding of academic research will take greater account of its economic impact. |
| Nesta's report identified healthcare, green technology and digital media as sectors where the UK could lose its leading international status unless the government offered support. | Nesta's report identified healthcare, green technology and digital media as sectors where the UK could lose its leading international status unless the government offered support. |
| Serious consequences | |
| It also urged Chancellor Alistair Darling to use the government's multi-billion fiscal stimulus package to support lending to companies working on new technologies. | It also urged Chancellor Alistair Darling to use the government's multi-billion fiscal stimulus package to support lending to companies working on new technologies. |
| It said: "The effects of not investing in these sectors are serious. | It said: "The effects of not investing in these sectors are serious. |
| "If the innovative capacity of our healthcare sector weakens, over £8bn worth of pharmaceutical exports and over £1bn of domestic sales could be lost annually. | "If the innovative capacity of our healthcare sector weakens, over £8bn worth of pharmaceutical exports and over £1bn of domestic sales could be lost annually. |
| "The cost to the NHS and to society in terms of poorer health outcomes would be considerably larger," the report concluded. | "The cost to the NHS and to society in terms of poorer health outcomes would be considerably larger," the report concluded. |
| Meanwhile, a minimum wage freeze has been called for by business leaders as part of measures to help private industry drive the economy out of recession. | Meanwhile, a minimum wage freeze has been called for by business leaders as part of measures to help private industry drive the economy out of recession. |
| The British Chambers of Commerce wants more supportive measures for firms in the forthcoming Budget, including cutting small businesses' corporation tax. | The British Chambers of Commerce wants more supportive measures for firms in the forthcoming Budget, including cutting small businesses' corporation tax. |
| Do you agree with warning by The National Endowment for Science, Technology and the Arts? Do you work for a small high-tech company? Will government proposals make a difference? What would you like to see in Budget 2009? Send us your comments using the form below. | Do you agree with warning by The National Endowment for Science, Technology and the Arts? Do you work for a small high-tech company? Will government proposals make a difference? What would you like to see in Budget 2009? Send us your comments using the form below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |