A huge scheme to build bio-science incubators at York Science Park will be one of the first projects to benefit from a £10 million government bonanza for regional manufacturing.

Yorkshire Forward, the regional development agency which will receive the cash boost from Trade and Industry Secretary Stephen Byers, said a contribution towards the £8 million building project next to the university was the likely outcome.

Already construction is in progress on a separate extension of the science Park's new innovation centre along with four buildings, one already earmarked by Infocom. But funding for a planned three-storey 30,000 sq ft bio-incubator with an entire floor of sought-after laboratories has always been a problem for Science City chiefs - until now.

The £10 million handed over to Yorkshire Forward is the highest allocation of any the nine Regional Development Agencies in England, from a new £54 million Regional Innovation Fund (RIF) to promote innovation and enterprise, and to support clusters and networks of businesses in their areas.

Prof Tony Robards, pro-vice chancellor for external relations at the University of York, said: "We have been in discussions with Yorkshire Forward which has identified York as the centre of the region's bio-science. It has wanted to help us with funds for the bio-incubator and we are in the late stages of discussion to achieve that.

"We don't know the extent of the contribution but we are delighted that so much money will be going to Yorkshire and the Humber.

"It was a good win for Yorkshire Forward and underlines the strength of the Science City partnership between the university and the City of York Council.

Updated: 08:34 Thursday, January 25, 2001