The review also takes into account the recommendations made by Sir Gareth Roberts in his recent review of the supply of science and engineering skills in the UK. The budget for resources that support the transfer of knowledge from the science base will be almost doubled to £114m for 2005/2006.

The Wellcome Trust – the world's largest biomedical research charity – will also contribute an additional £280m over the next five years to support new research programmes and better training for science teachers.

Alun Jones, chief executive of the Institute of Physics, welcomes the extra cash. "The additional funds for science and education represent a great opportunity for physics and for the continued strength of the UK's science base in the future," he said.

The UK government conducts the review every two years to allocate the £400bn of government funds.