By the time David Dickson, managing director of Garbutt & Elliott, set off for a Science City York board meeting, the Chancellor had stood up to give his pre-Budget speech in the Commons.

And by the time Mr Dickson, who is on Science City York's advisory board, arrived at the Innovation Centre in Heslington, he had a lot to be happy about.

The Chancellor's desire to encourage new business start-ups, especially in the science and technology sector, gave him and the meeting something to celebrate, he said, adding that there was a number of measures designed to give fledgling ventures a fillip.

"For one thing a new US-style British Fund For Enterprise Capital will be established for small companies to attract backing; for another research and development tax credits will be expanded to include the direct costs of software and power.

"Then there's the Chancellor's intention to encourage the British film industry, which is great news for the University of York, which has plans to develop film and television studies as part of its expanded campus; as well as for the existing theatre, film and TV studies unit at the campus at York St John."

Mr Dickson was also pleased with the Chancellor's announcement about new tax incentives. for "business angels".

He said that plans to develop a "business angel network" in Greater York would now be boosted by doubling the tax concession limit to £200,000 in a tax year.

"These investments receive up-front tax relief at 20 per cent and, if held for three years, can be sold tax free. That will surely be an encouragement for people to invest in dynamic new ventures in our city," he said.

Updated: 14:59 Tuesday, December 16, 2003