European Investment Bank's funding plans are an education

A £500 million funding package to back education and innovation projects in the UK was announced by the European Investment Bank (EIB) yesterday.

Under the initiative, projects such as university campus redevelopments, science parks and incubator facilities for start-up companies will be able to apply for discounted loans through the Royal Bank of Scotland (RBS), Lloyds and Santander.

RBS said that it was already in detailed discussions with two Scottish universities interested in accessing the funding.

The funding is part of an EIB "Knowledge Economy" loan package for the UK expected to eventually reach a total of more than 2 billion.

Secretary of State for Business, Innovation and Skills, Vince Cable, said the announcement was recognition of the leading role that the UK science sector plays in Europe.

"Research and innovation are key drivers of the government's ambition to rebalance our economy and to go for growth," he said.

"This new loan facility will be a welcome addition to the options available for universities and science parks in the UK."

The EIB - the European Union's bank - provides long-term financing for projects that support EU economic policies.

In the last five years it has channelled nearly 16bn into projects in the UK, including 1.2bn for investment in education.