- £4.5bn for strategic manufacturing, including £960m allocated to clean energy
- Funding will be provided to eight sectors key to economic growth, energy security and upgrading.
- Part of wider government support to ensure the UK is the best place to start, grow and invest in manufacturing.
More than £2 billion has been earmarked for the automotive industry and more than £975 million for aerospace, supporting the production, supply chain and development of zero-emission vehicles and investment in energy-efficient, zero-carbon aircraft equipment.
In addition to this, the Government will invest £960m in green industry growth initiatives to support clean energy production, build resilience to future health emergencies and support UK world-leading research and development. £520m has been committed to life sciences manufacturing to leverage
This funding targets the UK’s strongest and world-leading sector, as overall manufacturing accounts for more than 43% of all UK exports and employs around 2.6 million people. This includes situations where industries are undergoing fundamental changes to remain at the forefront of the global transition to net zero, such as the transition to zero-emission vehicles in the automotive industry.
Investments in the Green Industries Growth Accelerator will support the expansion of a strong homegrown clean energy supply chain across the UK, including carbon capture, utilization and storage, grid, hydrogen, nuclear and offshore wind. This will enable the UK to seize opportunities for growth through the transition to net zero, building on our world-leading decarbonisation track record and strong implementation proposition.
This funding forms part of the Prime Minister’s pledge to grow the economy and focus on long-term decision-making, ensuring that this funding focuses only on the sectors that are currently most successful. We are definitely looking at how to keep pace with the international community. Building British expertise for the industries of the future.
Together with our existing manufacturing support and net-zero transition plans, this package will help unlock private investment, provide certainty for investors, strengthen energy security, and protect and create jobs. This approach has already mobilized £198bn of public and private investment into low carbon energy deployment since 2010.
Today’s announcement comes ahead of the second Global Investment Summit, to be held later this month, which will focus on major investments in sectors including technology, sustainability, life sciences, advanced manufacturing and creative industries. Innovative companies from across the UK with investment opportunities will be featured.
It will also ensure that the UK remains at the forefront of the global net zero transition and seizes growth opportunities in the new green economy. The UK continues to be a world leader in reducing emissions, decarbonising faster than any G7 country since 1990, and setting out a clear plan to meet all climate targets and achieve energy security.
Treasurer Jeremy Hunt said:
“The UK is now the world’s eighth largest manufacturer, having recently overtaken France. We aim to provide funding to support the gender sector.
“Our £4.5bn funding will be leveraged many times over from funding from the private sector, which in turn will grow our economy and create more skilled, high-paid jobs in new industries that will be built for good. I guess.”
Kemi Badenoch, Secretary of State for Business and Trade, said:
“The UK is a global hub for advanced manufacturing, with world-leading automotive, aerospace and maritime sectors. This package includes a £4bn gigafactory and £600m invested in building the next generation electric Mini. We build on the gains we have made in recent investments such as , and will ensure that the Government can continue to help create jobs, grow the economy and secure the future of Britain’s great manufacturing industry.”
Claire Coutinho, Energy Security and Net Zero Secretary, said:
“Today we announced nearly £1bn to support green industry. Since 2010 we have already attracted £200bn of low carbon investment, with a further £100bn by 2030. We are looking forward to it and this will enable further investment. We have been energy pioneers in advanced manufacturing for many years and this will enable us to continue our great British tradition.”
Today, the Government also published its response to Professor Dame Angela MacLean’s review of the role that regulation and standards can play in fostering innovation and growth in advanced manufacturing.
The Government accepts all 14 recommendations in this report, supported by industry experts, which builds on the UK’s role as a world leader in setting industry standards, and says that appropriate regulation will ensure that advanced manufacturing It reveals how processes can improve safety and support the drive to net zero. and a more sustainable economy.
Among the recommendations accepted is accelerating the deployment of digital twins, which allow companies to create exact digital replicas of their entire manufacturing processes. Digital twins are used in a variety of fields and have become significantly more prevalent in the automotive sector, including car production, offering innovative approaches to product development, manufacturing and maintenance, and providing ways and processes for companies to solve problems. It helps you test how to make it more efficient.
To encourage the growth of small and medium-sized manufacturing more broadly, the government will expand the Made Smarter Adoption program, offering it to all UK regions from 2025 to 2026 and then working with local authorities. It was also announced today that the introduction of this system will be considered. The program will run across the UK from 2026 to 2027.
The program helps small and medium-sized manufacturing companies leverage advanced digital technologies to reduce carbon emissions and improve productivity, and is expanding to include digital internships.
Stephen Phipson, chief executive of manufacturer organization Make UK, said:
“Make UK has been campaigning for many years to make Made Smarter a fully national scheme so that all small and medium-sized manufacturers can benefit from the expertise this program provides, I am pleased with the government’s decision today to commit to further development.
“Made Smarter has already transformed thousands of businesses across the North East, North West, West Midlands and Yorkshire & Humber and will now help accelerate the industrial digitization of small and medium-sized enterprises across the country. The end-to-end expert support we provide helps small and medium-sized businesses dramatically increase productivity, improve energy efficiency, accelerate growth, improve role skills and provide new jobs with digital skills. We are successfully creating the workforce of the future, enabling small scale manufacturing in the UK to continue to grow and remain globally competitive.”
Additionally, the Government has today committed to extend the Connected and Automated Mobility Research and Development Programme, with up to £150m of funding between 2025-26 and 2029-30. This will help the UK secure a first-mover advantage in the introduction of self-driving cars and services.
The UK’s first battery strategy will also be published next week, outlining the government’s actions to achieve a globally competitive battery supply chain in the UK by 2030, supporting economic prosperity and the net zero transition. do.
We have also announced plans to launch a Hydrogen Industry Taskforce in partnership with the Hydrogen Innovation Initiative and Innovation UK to support our ambition to maximize investment opportunities in hydrogen propulsion system manufacturing in the UK.
The government is expected to unveil its Advanced Manufacturing Plan next week, setting out details of its proposals for manufacturing.
Further information
- Further information, including the application process, will be published by the government in due course.
- There are eight manufacturing sub-sectors that can apply for funding:
- car
- Aerospace
- life science
- Clean energy (carbon capture, utilization and storage, power grids, hydrogen, nuclear, offshore wind)
- This funding, targeted at economically strategic sectors, comes in addition to broader support for the manufacturing sector, including:
- The UK Industry Supercharger will ensure energy costs for key industries such as steel, metals, chemicals and paper manufacturers are in line with other major economies around the world.
- The Industrial Energy Transformation Fund will help hundreds of energy-intensive businesses deploy technologies that will enable them to transition to a low-carbon future.
- Lowest corporate tax in G7
- The UK also has a world-leading track record on green adoption and has a comprehensive, clear and considered plan for the net zero transition.
- Powering Up Britain has set out detailed rollout plans for every sector of the economy through the net zero transition. These include long-term frameworks to provide certainty for investors, from Emissions Trading Systems (ETS) to Contract for Difference schemes. These are supported by public spending, with the 2021 Spending Review identifying £30bn for the green industrial revolution, followed by a further £6bn for energy efficiency and up to £200bn for carbon capture, utilization and storage (CCUS). billion pounds has been announced. .