The Office of Science and Technology has earmarked nearly Pounds 21 million for special initiatives in the science budget for 1996/97.

Announcing guidelines for the research councils over the next two financial years, science minister Robert Hughes said that this money "provides flexibility to target funding to emerging high priority initiatives". These include support for programmes likely to emerge from the Technology Foresight exercise. For 1997/98, Pounds 31.4 million has been reserved for such initiatives. In addition, Pounds 6 million has been set aside for Link, the university/industry collaboration, followed by Pounds 12 million in 1997/98.

The planning guidelines for the research councils in 1996/97 are: * Biotechnology and Biological Sciences Research Council, Pounds 160 million; * Economic and Social Research Council, Pounds 61 million; * Engineering and Physical Sciences Research Council, Pounds 355 million; * Medical Research Council, Pounds 5 million; * Natural Environment Research Council, Pounds 154 million; * Particle Physics and Astronomy Research Council, Pounds 196 million.

The science budget for 1996/97 is set at Pounds 1.3 billion, followed by Pounds 1.33 billion for 1997/98. While the figures for the research councils are in line with expectations of a neutral science budget for the next two years, there is concern in research councils over the knock-on effects on funding for priority initiatives next year.

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They total 5 per cent of the science budget this year, but would rise to around 9 per cent next year to fulfil OST projections.

The Biotechnology and Biological Sciences Research Council, for example, is required to spend Pounds 12.2 million on such initiatives over 1995/96 and is expected to find Pounds 7.7 million of this internally.

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In 1996/97, BBSRC's spend on these initiatives will increase to Pounds 16 million of which Pounds 11.5 million will have to be found internally.

This together with inflation and the loss of Pounds 1.6 million in its baseline cash for 1996/97 is likely to mean fewer responsive mode grants being made and an annual programme of job losses in its institutes being introduced. Each research council, apart from PPARC, is being taxed in effect by 1 per cent on 1995/96 budget figures to provide the Pounds 21 million funds for priority schemes next year. The 1995/96 budgets were published last month.