THE scientific and technology sector in York has a lot to be thankful for in Chancellor George Osborne’s budget.

Particularly favoured are firms carrying out research and development, the smaller ones getting a large tax uplift – and fitting into that category are many spin-outs from the University of York.

If a company, for example, plans to spend £100,000 on research next year, that could be worth £5,000 extra in tax savings or “enhanced tax relief” on their research spend.

Then there’s Mr Osborne’s promised simplification of clinical trials so that pharmaceutical firms in particular, get their products more easily to market.

It is the start-ups who now have a lot to look forward to by way of backing for their ventures, given the Chancellor’s increase in tax relief scheduled for 2012 doubling the value to investors under the Enterprise Investment Scheme.

But there is a cloud on the horizon, with ten of 21 new Enterprise Zones which will be getting tax and rates relief as well as quicker planning processes.

The nearest of those announced so far is in Leeds and there are others nearby such as the Tees Valley, Sheffield and Tyneside.

It heightens competition for the York authorities when it comes to inward investment in the city. Let us hope that the new Local Enterprise Partnership being established will bear this in mind when it pitches for enterprise zones in the region.

The Chancellor’s boost for new house building should help national developers like York-based Persimmon. Effectively, he is making it easier for first-time buyers to find loans on new properties by making £250 million available to them.