Listen to this article here
The UK government has announced a £4.5 billion package of investment across eight UK manufacturing sectors between 2025 and 2030, including the automotive, aerospace, and clean energy sectors.
The automotive industry is the largest recipient of funds, securing over £2 billion, while the aerospace sector will also receive £975 million. Funding for both sectors will support the manufacture, supply chain and development of zero emissions and energy efficient technology.
£960 million will also go to supporting a Green Industries Growth Accelerator to support clean energy manufacturing, and support the development of clean energy supply, including carbon capture, utilisation and storage, electricity networks, hydrogen, nuclear and offshore wind.
The UK’s life sciences sector will also receive a further £520 million investment to capitalise on the country’s already strengths in research and development in this field.
It is hoped the funding will also help boost private sector investment into UK manufacturing and drive economic growth: manufacturing accounts for 43% of UK exports and employs 2.6 million people.
Chancellor of the Exchequer, Jeremy Hunt, said:
“Britain is now the 8th largest manufacturer in the world, recently overtaking France. To build on this success, we are targeting funding to support the sectors where the UK is or could be world-leading.
“Our £4.5 billion of funding will leverage many times that from the private sector, and in turn will grow our economy, creating more skilled, higher-paid jobs in new industries that will be built to last.”
Also announced alongside the investment is the commitment to expand the Made Smarter programme for small and medium-sized manufacturers. The scheme, first piloted in the North West where it has already supported over 300 projects, encourages businesses to adopt new technologies and digitalise operations in order to boost productivity and decarbonise firms.
The government is expected to set out further details around its offer to the manufacturing sector with the upcoming publication of its Advanced Manufacturing Plan.