The UK government is making available £4.5 billion of funding for British manufacturing to increase investment in nine sectors.
Announced on 17 November, the funding will be available from 2025, with the intention of providing long-term certainty to boost investor confidence. The sectors in question are: Automotive, Aerospace, Life sciences, and Clean energy (carbon capture, utilisation and storage, electricity networks, hydrogen, nuclear, and offshore wind).
Over £2 billion will be made available to the automotive industry and £975 million for aerospace. There will also be £960 million for a Green Industries Growth Accelerator “to support clean energy manufacturing”, and £520 million for life sciences manufacturing “to build resilience for future health emergencies and capitalise on the UK’s world-leading research and development.”
Commenting on the Green Industries Growth Accelerator, RenewableUK’s Chief Executive Dan McGrail said: “At a time when international competition for investment in clean technology manufacturing is fierce, the Chancellor is right to take a more proactive approach to stimulate green industrial growth. The UK’s leadership in areas like offshore wind has given us a strong foundation to build on, with supply chain companies already in place across the country employing thousands of workers. But with the global market set to skyrocket in the years ahead, we should be looking to capture as much of this multi-billion pound opportunity as we can through a more strategic approach to building the UK’s manufacturing base.
“The Chancellor has been clear that the Green Industries Growth Accelerator is for strategic industries, targeted to unlock maximum private investment where the UK can be competitive – and there couldn’t be a better fit for that than offshore wind and renewables. With the right support, the likes of which we’ve seen from Government today, industry estimates that the offshore wind supply chain alone could boost the UK’s economy by £92bn by 2040. The sector is working to develop an Industrial Growth Plan which will set out how we can capture this opportunity to boost our energy security, grow our domestic supply chain and provide affordable power to consumers”.
Also responding to the Treasury announcement of a funding boost for Clean energy, Claire Mack, Chief Executive of Scottish Renewables, said:
“The UK sits on the cusp of a golden opportunity in clean energy. Making the investments that matter now will mean the difference between creating winners and losers in the years ahead.
“There is no doubt that our future is one of clean energy investment, focused on creating high quality, sustainable jobs and producing clean power to run homes and businesses securely and affordably.
“This announcement provides a shot in the arm for a sector with tremendous potential.
“The devil however, will be in the detail and we look forward to working with government to target this funding in the smartest ways in the years to come.”