The venture capital industry has slammed the proposed cuts to the UK science budget, mooted last week by business secretary Vince Cable, which leading figures have said will stifle innovation and force early-stage investment in the sector overseas.

In a speech made at the University of London last week, Cable revealed he intended to pursue cuts to the country's science budget. The UK Government at present spends £6bn a year on funding scientific research, but Cable said as the UK is "severely financially constrained" and that this figure would have to be reviewed.