Government announces £4.5bn funding for UK manufacturers

Over £2bn will go to the automotive industry and £975m to the aerospace sector to support the manufacture, supply chain and development of zero emission vehicles and energy efficient, zero-carbon aircraft equipment respectively. 

Commenting on the announcement, Mike Hawes, chief executive of trade body SMMT (Society of Motor Manufacturers and Traders), said: "[This] announcement is an unequivocal vote of confidence in the UK’s critical automotive industry. Coming on the back of almost £20bn committed by the sector in next generation plants and technologies this year alone, it is indicative of the scale of investment such support can leverage and the result of substantial collaboration between government and the industry.”

The government also committed to £960m for a Green Industries Growth Accelerator to support clean energy manufacturing, and £520m for life sciences manufacturing.  

Along with existing manufacturing support and plans for net zero transition, the funding will help to unlock private investment, provide certainty to investors, boost energy security, and protect and create jobs. The government claims this approach has led to £198bn in public and private investment in low carbon energy deployment since 2010.