Britain's investment in stem cell research took a major step forward this week with the news that a further £16.5 million is being issued in grants.

Little more than a week after the country's pioneering stem cell bank opened, fifty-seven new projects have been given the go-ahead as the search for ways to utilize stem cells in the treatment of diseases like diabetes, cancer, and Alzheimer disease gathers pace.

The successful applicants ranged from a team at the National Institute of Medical Research in north London, who want to see if stem cells from the lining of the nose can stimulate regeneration of the spinal cord, to investigations at the University of Birmingham into the plasticity of adult stem cells.

The awards were announced on behalf of Research Councils UK—a strategic partnership of the seven leading research councils, including the Medical Research Council (MRC), the Biotechnology and Biological Sciences Research Council and the Engineering and Physical Sciences Research Council.

In a statement on behalf of the group, the MRC said the grants will ensure the United Kingdom is "at the forefront" of the international research community working on stem cells.

The extra cash being spent by Britain also raises further questions about what role will be left for the United States to play in the future exploitation of stem cell research. In August 2001, President Bush ruled out federal funding for embryonic stem cell research beyond the 78 cell lines already in existence at the time.

There have been some indications that this position may be softening. Earlier this month, National Institutes of Health director Elias Zerhouni hinted easing restrictions on the number of cell lines could speed up "some areas of research." But so far, there have been no concrete policy changes.

MRC chief executive Colin Blakemore told The Scientist: "Compared to some other areas of science, this is one where the UK has an edge because of our relatively compliant legislative framework."

"This is not to say there is no stem cell work being done in the US. But there's a real need for many more stem cell lines when it comes to attempting therapy. And it does seem a little odd, from a moral and philosophical point of view, to accept existing cell lines but not allow any more in the future," said Blakemore. "To be honest, I would not be surprised if the US reassesses its position when progress has been demonstrated with embryonic stem cells. I think this is what many people expect to happen."

Ira Black, director of the Stem Cell Research Center at Robert Wood Johnson Medical School in Camden, NJ, said the big difference was that the United Kingdom had adopted a "country-wide" policy on stem cell research—as opposed to the state-by-state strategy in the United States. New Jersey is currently considering budget proposals that could mean it will be the first US state to use public funds for stem cell research.

"In that context, we are cheering the UK on," Black told The Scientist. "But I think it would be an overstatement to say the UK is running away with the field."

"I think we all admire the openness that's exemplified by the UK. I would say, in those terms, it is assuming a leadership position in stem cell research. In terms of the US, different states are adopting different strategies. Here, New Jersey has assumed the leadership role."

The biggest single grant allocation announced this week—just under one million pounds—went to a team at the University of Sheffield to help set up an embryonic stem cell resource centre, which will provide expertise, resources, facilities, and training for scientists in this field.

The smallest, just £89,000, was awarded to Keele University researchers to look at using magnetic nanoparticles to manipulate and activate stem cells.