THE director of a North-East science park is predicting a surge in demand for incubator space following Chancellor Gordon Brown's decision to remove a tax liability that had been discouraging the commercial exploitation of research-led businesses.

The Finance Act 2003 imposed a tax liability on the sale of shares in such businesses, which meant that, for the first time, universities had to pay income tax on the sale of the shares.

Following its introduction, the tax liability led to a significant slow-down in the number of businesses being formed in universities, with Newcastle and Durham having to reconsider before starting research-led companies.

Professor John Anstee, scientific director of Netpark, a science park in Sedgefield, County Durham, said the removal of the liability took effect immediately and was expected to lead to an increase in business activity.

He said: "Netpark is being developed specifically to provide the necessary environment and infrastructure to ensure that new businesses emerging from the North-East's five universities can thrive and succeed, especially through the critical early years of growth.

"We are doing everything possible to ensure that as many spin-out businesses as possible choose to stay and grow in the region.

"These businesses are the life-blood of our region and will help to secure our future economic prosperity."

NetPark has already completed the first phase of incubation facilities for about 30 science businesses and is planning further developments.

Published: 21/12/2004