Ahead of the Budget, Chancellor Jeremy Hunt has announced a significant investment package in both the aerospace and manufacturing sectors, as part of the government’s plan to grow the economy, boost health resilience and support jobs across the UK.
The funding will go towards several companies and projects who are making cutting edge technology in sectors key to economic growth and part of wider government support to ensure the UK is the best place to start, grow and invest in manufacturing.
Commenting Antony Higginbotham MP:
We have some world leading aerospace companies in our borough - providing highly skilled, highly paid work that I'm always incredibly proud to bang the drum for.
Keeping this level expertise in our part of the world is about getting behind these businesses but also about working to ensure we equip the next generation with the skills needed to keep us at the forefront of the engineering and aerospace sectors.
That’s exactly what this investment will help deliver.
As part of the investments announced today, almost £200 million of joint government and industry funding is going to aerospace R&D projects, supporting the development of energy efficient and zero-carbon aircraft technology and accelerating the transition to net zero aviation.
This includes £40 million which is going towards a project developing zero-carbon aircraft engine technology - led by Cambridge-based Marshall Group - and around £96 million is being invested in Airbus-led projects. Airbus, which manufactures almost all its aircraft wings in the UK bringing in jobs and investment to the UK economy – is developing more efficient wing designs and increasing carbon fibre production rates for wing components, reducing CO2 emissions and fuel burn.
Funding for these projects will be delivered through the Aerospace Technology Institute (ATI) programme. It was also confirmed today that the £975 million in aerospace funding over five years from 2025, announced at Autumn Statement, will be allocated to the ATI programme. The programme has facilitated over £3.6 billion of joint government and industry R&D investment to date - providing industry with continued confidence and security to invest in the UK for the long term - and includes R&D support for small businesses through the ATI SME competition.
Alongside this, the Chancellor has today set out further details of the two-year £50 million apprenticeship growth sector pilot announced at Autumn Statement.
Following engagement with the sector, from April eligible apprenticeship providers of apprenticeship standards including pipe welder, nuclear technician and laboratory technician will now benefit from targeted payments worth £3k for every start of an apprentice.
It is intended the funding will be used to support providers in making capital investment that will unlock their ability to grow and deliver the standards in scope of the pilot, such as purchasing course specific equipment, tools, and machinery that will last beyond delivery of a single apprenticeship.
This will explore ways to stimulate training and break down barriers to high-quality training in advanced manufacturing and engineering, green industries, and life sciences apprenticeships. Further detail will be set out in upcoming guidance later this month.
The significant funding package for R&D and manufacturing projects announced today is targeted to support sectors where the UK is or could be world-leading and is designed to unlock investment from the private sector by providing certainty to investors - supporting the government’s priority to grow our economy by protecting existing and creating new jobs, so we can deliver the long-term change our country needs to deliver a brighter future.
Chancellor of the Exchequer Jeremy Hunt said:
“We’re sticking with our plan by backing the industries of the future with millions of pounds of investment to make the UK a world leader in manufacturing, securing the highly-skilled jobs of the future and delivering the long-term change our country needs to deliver a brighter future for Britain”.
Business and Trade Secretary Kemi Badenoch said:
“Today’s announcement builds on the success of our Advanced Manufacturing plan announced last year, and will ensure we continue to grow the economy, help create jobs and secure the future of great British manufacturing.
Our plan for the British economy is working – which is why firms like Airbus and BMW are continuing to bet on Britain.”
A full breakdown of the auto and aero winning projects is included below:
9 Aerospace Technology Institute Programme projects led by:
- Safran Landing Systems: Developing new designs, methodologies, and technologies to accelerate and catalyse benefits for current and next generation landing gears.
- Marshall Group: Developing and testing a smart, connected liquid hydrogen (LH2) fuel system for the next generation of zero emission aircraft.
- Airbus and National Composites Centre: Developing technology which increases the production rate of carbon fibre upper covers for aircraft wings.
- Airbus: Developing ultra-efficient technologies to cut fuel burn and weight, independent of the fuel choice.
- Airbus: Developing wing design and manufacturing technologies for lighter, more efficient aircraft.
- Spirit AeroSystems: Developing technologies for the storage and integration of liquid hydrogen on large aircraft.
- Goodrich: Developing a power-dense electric propulsion motor drive system aimed at hybrid and electric aircraft including helicopters and potentially next generation single aisle planes.
- TT Electronics: Developing technology to support electrical power conversion and electric machines for future more electric and all electric aircraft operating at higher voltages.
- Phoenix Scientific Industries: Transforming the production of titanium powder via ‘cold-crucible’ gas atomisation to enable high volume production.
