Britain's Chancellor of the Exchequer Gordon Brown has announced the birth of three venture capital funds to support smaller hi-tech companies. The funds will provide capital of £240 million sterling to support British small and medium enterprises (SMEs) in hi-tech sectors such as computers, biotechnology, electronics and communications.

"Encouraging entrepreneurs to start up new businesses and helping dynamic and innovative small businesses to grow is vital to achieving the high levels of growth and employment we all want to see," Mr Brown said. He was speaking at a London conference on venture capital and how it can boost growth and employment in Europe.

He said European Union finance ministers would discuss further measures when they meet in Luxembourg today.