Sustained investment over the last decade has given us a world class science and research base from which to exploit potential growth markets, including the green economy. Measures in the 2009 Budget, such as £4 billion support for UK renewable energy projects and £405 million for developing a low carbon energy and green manufacturing sector, offer further scope to promote university collaboration with the private sector in this area. Publication of the new Higher Education Framework will set out how the HE sector will take a more active approach to building British competitive strengths through higher skill levels, research and knowledge transfer. This work will include ensuring our universities have clear funding incentives to respond quickly to support areas of potential growth.