£4.5bn investment in British manufacturing

author: FutureCar Staff    

The government of the United Kingdom has announced a funding package of £4.5 billion for British manufacturing. This funding is aimed at increasing investment in eight key sectors across the country. It will be available from 2025 for a period of five years, providing industry with long-term certainty regarding their investments.

The automotive industry will receive over £2 billion of the funding, while £975 million has been earmarked for aerospace. These funds will support the manufacturing, supply chain, and development of zero-emission vehicles, as well as investment in energy-efficient and zero-carbon aircraft equipment.

In addition to this, the government has committed £960 million for a Green Industries Growth Accelerator, which will support clean energy manufacturing. Another £520 million has been allocated for life sciences manufacturing, with the aim of building resilience for future health emergencies and capitalizing on the UK's world-leading research and development.

This funding is targeted at the UK's strongest sectors, which make up over 43% of all UK exports and employ around 2.6 million people. It specifically focuses on sectors that are undergoing fundamental changes to remain at the forefront of the global transition to net zero, such as the automotive industry's move towards zero-emission vehicles.

The Green Industries Growth Accelerator investment will support the expansion of strong, home-grown, clean energy supply chains across the UK. This includes areas like carbon capture, utilization and storage, electricity networks, hydrogen, nuclear, and offshore wind. These investments will enable the UK to seize growth opportunities during the transition to net zero, building on the country's world-leading decarbonization track record and strong deployment offer.

This funding forms part of the Prime Minister's commitment to growing the economy and making decisions for the long-term. It ensures that the funding not only focuses on the most successful sectors today but also looks ahead to how the UK can keep pace internationally and build expertise for the industries of the future.

Together with existing manufacturing support and plans for a net-zero transition, this funding package will help unlock private investment, provide certainty to investors, boost energy security, and protect and create jobs. Since 2010, this approach has already mobilized £198 billion in public and private investment in low-carbon energy deployment.

The announcement of this funding comes ahead of the second Global Investment Summit, which will showcase innovative companies from across the UK. The summit will highlight significant investment opportunities in sectors such as technology, sustainability, life sciences, advanced manufacturing, and creative industries.

This funding will also ensure that the UK remains at the forefront of the global transition to net zero and can seize growth opportunities in the new green economy. The UK has already decarbonized faster than any G7 country since 1990 and has clear plans to meet all climate targets and deliver energy security.

The Chancellor of the Exchequer, Jeremy Hunt, stated that the UK is now the 8th largest manufacturer in the world and is targeting funding to support sectors where the country is or could be world-leading. He emphasized that this funding will leverage private sector investment and create skilled, higher-paid jobs in new industries that will be built to last.

The Business and Trade Secretary, Kemi Badenoch, highlighted that the UK is a global hub for advanced manufacturing, with world-leading automotive, aerospace, and maritime sectors. This funding package builds on recent investment wins, such as the gigafactory and the investment in building the next generation of electric Minis. It aims to create jobs, grow the economy, and secure the future of British manufacturing.

The investment in manufacturing has been welcomed across the industry. Stephen Phipson, CEO of Make UK, the manufacturers' organization, expressed delight at the government's decision to commit to a national rollout of the Made Smarter scheme. He highlighted how this program has already transformed thousands of companies and can now help turbo-charge industrial digitalization across the whole country. Mike Hawes, SMMT chief executive, also praised the announcement, stating that it is a vote of confidence in the UK's critical automotive industry and will deliver benefits for the entire country in terms of growth, high-value jobs, and productivity.

FutureCar Staff