The Capital modernisation fund will launch a "£1.7bn computers for all initiative".
In a separate measure that may benefit some IT start-ups, £20m has been earmarked for start up funding for venture capital funds. There will be a new research and development tax credit, a new enterprise management initiative, and £100m investment in university science laboratories and equipment. Leader of the Opposition William Hague is on his feet now responding to the budget speech, and has described Gordon Brown as "the pickpocket chancellor".
More to follow.