'Britain will lead stem cell research'

Tony Blair was set to defy pro-life campaigners today by declaring that he wants Britain to become the world centre for stem-cell research.

Mr Blair is also expected to make clear that animal rights extremists will not be allowed to stand in the way of research and promised to bring forward new laws to protect scientists.

The plans are due to be outlined today when Mr Blair and Trade and Industry Secretary Patricia Hewitt launch the Department of Trade and Industry's five-year plan. Government insiders believe the reelection of President Bush, who places strict limits on stem-cell research on moral grounds, has given Britain an opportunity to take the lead in the technology.

Researchers believe stem cells - young cells which are able to grow into kidney, heart and brain tissue - can be used to repair damaged organs and tackle presently incurable diseases. But controversy arises because they are created from embryos, either from fertility treatment, abortions or cloning.

Church groups and pro-life campaigners argue that such a use of human life is immoral. But Mr Blair will make clear that although the science is controversial, it could produce thousands of jobs and boost Britain's biotech industry.

He will point out that longer life expectancy has resulted in once rare diseases becoming common. "Properly regulated stem-cell research could transform the life chances of people suffering from Parkinson's disease-Alzheimer's, stroke and spinal cord injury," he will say. "I do not think it is right to deny people suffering from these illnesses the hope of a cure."

Mr Blair will say Britain has one of the most comprehensive schemes of stem-cell research regulation. He will praise the UK stem-cell bank, a world first where two human embryonic stem-cell lines were deposited this year.

"The Government is sending a strong signal today... that the UK is the place to carry out stem cell research," he will say.

But the Prime Minister will also stress this research is just one example of where the UK can lead the world in science. "Our ambition is for the UK to become the scientific capital of the world," he will say.

Ms Hewitt will also announce plans to cut red tape on business by ?1 billion.