The UK government has announced a significant £4.5 billion investment in strategic manufacturing sectors, with a focus on economic growth, energy security, and levelling-up initiatives. This funding will be distributed among eight key sectors, including over £2 billion for the automotive industry and £975 million for aerospace technology. The support aims to bolster manufacturing, supply chains, and the development of zero-emission vehicles, aligning with the global transition to net zero.
Of the total funding, £960 million has been earmarked for the Green Industries Growth Accelerator, supporting clean energy manufacturing. This investment will facilitate the expansion of home-grown clean energy supply chains, encompassing carbon capture, utilisation and storage, electricity networks, hydrogen, nuclear, and offshore wind. The goal is to capitalise on growth opportunities during the transition to net zero and reinforce the UK’s leadership in decarbonisation.
An additional £520 million has been allocated for life sciences manufacturing, contributing to resilience for health emergencies and leveraging the UK’s research and development capabilities.
The 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.”
Government initiatives aim to propel green industries forward
The news also highlighted the government’s acceptance of all 14 recommendations from Professor Dame Angela McLean’s review on regulation and standards in advanced manufacturing. These recommendations aim to drive innovation, enhance safety, and support the transition to a more sustainable economy.
The expansion of the Made Smarter Adoption program, the commitment to Connected and Automated Mobility Research and Development, and upcoming plans for the Hydrogen industry taskforce and the Advanced Manufacturing Plan were also included in the announcement.
The UK’s first Battery Strategy is also expected to be published next week, which will outline the government’s plans to achieve a globally competitive battery supply chain in the UK by 2030.
Energy Security and Net Zero Secretary Claire Coutinho commented, “Today we are announcing nearly £1bn to back our green industries. While we’ve already attracted £200 billion in low carbon investment since 2010, with another £100 billion expected by 2030, this will unlock even more. We have long been energy pioneers in advanced manufacturing, and this will allow us to carry on that great British tradition.”
The £4.5 billion funding will be available from 2025 for five years, with further details to be published next week, as part of the Advanced Manufacturing Plan.