YORK has been placed in the forefront of the technology revolution in the North by Chancellor Gordon Brown, who yesterday announced that the city would be involved in a £100 million investment programme.

In his Pre-Budget Report, the Chancellor named York, along with Manchester and Newcastle, as the first three cities which will benefit from the giant cash pot.

The announcement has been described as "fantastic news" by people spearheading Science City York.

Professor Gareth Lloyd-Jones, chairman of Science City York, said University of York's successes in the biosciences and its planned physical expansion were being recognised at the highest levels.

Science City York - a collaboration between the university, City of York Council and Yorkshire Forward- had, he said, generated 9,000 jobs for York, with a potential to double that over the next ten years.

"All of this now reflects the fact that Whitehall sees us as being up there - and able to deliver, and is putting us in the vanguard of the science city process."

The Chancellor announced the bonanza as part of a ten-year "science framework", involving a £2.5 million investment nationally "to make Britain the best place for research and development".

As part of a £100 million technology investment programme, regional development authorities in the North would promote science cities, starting with Newcastle, Manchester and York, he said.

Sheffield, Liverpool and Leeds - all cities which also have strong science-based universities - will also eventually share in the spoils as part of Deputy Prime Minister John Prescott's Northern Way initiative to put science and technology under one big northern umbrella.

Prof Lloyd-Jones added: "That means that our share could be at least £16 million. That sounds fantastic. Now the issue is what form the investment will take and how many caveats, if any, there will be."

Brian Cantor, the Vice-Chancellor of the University of York, said: "The Chancellor's announcement that he will remove tax barriers to the formation of spin-out companies will further assist the University in its objective of harnessing the research skills of our scientists as an economic driver for the city, the region and the country as a whole."

Updated: 11:02 Friday, December 03, 2004