The Medical Research Council (MRC) and the Wellcome Trust are joining forces to make up to £30 million available for research into neurodegenerative diseases such as Alzheimer's, Parkinson's and multiple sclerosis.
Aimed at leading UK-based, inter-disciplinary research groups which may then potentially collaborate with scientists overseas, the funding aims to enhance levels of understanding regarding the causes of such diseases.
The chief aim is to generate means of earlier diagnosis as well as more effective treatments.
Sir Leszek Borysiewicz, chief executive of the MRC, said: "The partnership between the Wellcome Trust and the Medical Research Council will pave the way for new innovative research to help prevent the onset of neurodegenerative diseases and develop more effective methods of treating them."
He added that the funding represents a "huge step" towards improving the lives of people affected by the conditions.
The announcement has been warmly welcomed by Rebecca Wood, chief executive of the Alzheimer's Research Trust, who said research is the "only long-term solution" to the challenge posed by dementia.
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