The Science and Technology Facilities Council (STFC) has announced a cut to grant funding. New grants will be issued only to October 2010 in the first instance. According to a press release the temporary measure has been implemented with immediate effect and will stay in place “pending the outcome of the prioritisation exercise” which will end in the New Year. However, there's no guarantee that funding will return to previous levels afterwards. STFC has fallen foul of the fall in the strength of the pound, as it is committed to international subscriptions to facilities abroad.
It has cut funding before; in 2007 it cut grants funding by 25%, to the consternation of the Royal Society and the Royal Astronomical Society.