Scotland's universities have welcomed a boost to science and research in spending plans that will see the sector's resources rise from £700 million this year to £804 million in 2005-06.
But despite the 15 per cent cash-terms rise, they fear that other areas, including academic pay, will still suffer from underfunding as much of the new money is earmarked for areas such as commercialising research and encouraging entrepreneurialism in staff and students.
And while further education will win a 20 per cent rise over the same period, with a £504 million budget in 2005-06, colleges warn of a real-terms cut this year and next.
Iain Gray, Scotland's minister for enterprise and lifelong learning, said the funding proposals would result in "a transformation of Scotland's science base".