Business Secretary: “I'm backing investment and innovation to power good growth in every corner of the UK”

Business Secretary: “I'm backing investment and innovation to power good growth in every corner of the UK”
New Business Secretary at Farnborough International Airshow to set out stall to go further and faster for growth by commercialising science and innovation to deliver for every postcode.
- New Business, Innovation, Science and Trade Secretary Jonathan Reynolds sets out government’s ambition to harness innovation and drive good growth in every part of the UK.
- Reynolds at Farnborough International Airshow to set out stall to go further and faster for growth by commercialising science and innovation to deliver for every postcode.
- Announcement comes as government unveils £600m package to back British aerospace innovation, including research & development support and new supply chain fund.
The new Business, Innovation, Science and Trade Secretary Jonathan Reynolds will today (22 July) set out the Government’s ambition to harness the potential of science and innovation to power good growth in every corner of the country.
In just the third day of Prime Minister Andy Burnham’s new government, the Secretary of State is visiting the Farnborough International Airshow to set out government’s stall on bringing British business, innovation and science together to deliver for every postcode.
It comes as the new Government unveils a £600 million package of support for the UK aerospace industry at the Airshow, including over £500 million for cutting-edge aerospace research and technology projects to pioneer greener air travel, and a new £100 million Aerospace Supply Chain Fund to help ambitious suppliers scale up and meet the demand in a fast-growing and important industry.
The new support forms part of the Prime Minister’s pledge to reindustrialise Britian and will help businesses in every part of the country develop cutting-edge new aerospace technologies, supporting innovation, attracting investment and securing high-skilled jobs in high-tech roles, 90 percent of which are outside London and the South East.
Business, Innovation, Science and Trade Secretary Jonathan Reynolds said:
This government is laser-focused on bringing good growth to every corner of the country, and we’re wasting no time getting on with the job.
Aerospace is one of Britain’s great industrial success stories. Partnerships like this show the power of bringing business and innovation together to harness our strong manufacturing base and cutting-edge research to support skilled jobs right across the UK.
Alongside today’s investment in pioneering research and development, the Government and British Business Bank have announced plans for a new £100 million Aerospace Supply Chain Fund, working with industry partners including Airbus, Rolls-Royce, GKN Aerospace, Safran and the trade body ADS.
The proposed fund will help ambitious UK aerospace suppliers access the growth capital they need to expand, invest in productivity and workforce capability, and compete for new opportunities in a growing global market. By strengthening British manufacturing capability, it will support businesses to scale and create high-quality jobs across the country.
The aerospace research and technology projects announced today will pioneer a wide range of technologies, from advanced aircraft wings and future engine systems to hydrogen-powered flight, digital engineering and advanced manufacturing.
Examples include Airbus-led projects developing next-generation wing technologies and manufacturing processes, Rolls-Royce projects building on its world-leading UltraFan engine programme – working in partnership with government to prepare for Rolls-Royce to seize the opportunity of the narrowbody market – and companies including ZeroAvia and Safran advancing hydrogen and electric propulsion and more efficient aircraft systems.
Together, the projects will help strengthen the UK’s position as a global aerospace leader, support the transition to greener aviation and turn world-class British innovation into investment, jobs and long-term economic growth.
Gary Elliott, CEO, Aerospace Technology Institute said:
The UK aerospace sector’s world-class innovation and manufacturing capability is being showcased at Farnborough this week. Today’s announcement reflects our commitment to keeping the UK at the forefront of aerospace technology, driving jobs, growth and competitiveness as we work to double the sector’s market value by 2035.
These projects add to a balanced portfolio of investments that cement UK leadership in designing the future of flight.
The Government has also signed a partnership with Embraer to deepen cooperation on aerospace innovation, research and development, and supply chain opportunities.
The Memorandum of Understanding will help identify new opportunities for UK businesses within Embraer’s global supply chain, strengthen links between the UK and one of the world’s leading aerospace companies, and create new opportunities for British firms to grow and compete internationally.
The Aerospace Growth Partnership (AGP) is also publishing its latest strategy update at Farnborough, setting out a shared government and industry plan for the UK aerospace sector through to 2030.
The report reinforces a joint ambition to double the UK’s share of the global aerospace market by 2035 and position the sector for up to fourfold growth by 2050, while supporting the transition to net zero aviation through investment in innovation, skills and a stronger supply chain.
ENDS
Notes to editors:
- The ATI Programme is supported by up to £2.3 billion of government funding through to 2035 and remains open to UK-registered organisations.
- Since 2013, ATI Programme-supported projects have involved more than 460 organisations across the UK, including more than 300 SMEs.
Quotes:
Louis Taylor, CEO, British Business Bank said:
The continued success of the UK’s aerospace sector depends on the capacity, resilience and competitiveness of the supply chain that sits behind it.
This fund will help strengthen the aerospace supply chain by giving high potential UK suppliers the capital they need to scale, invest and compete for future aircraft work.
Nicola Grady-Smith, Chief Transformation Officer, Rolls-Royce, said:
A resilient supply chain is a key foundation for the UK’s continued success in the growing and globally attractive aerospace market. We have spent many years using our expertise to support UK suppliers that need to increase their competitiveness and strengthen their capability.
Co-ordinated action to open up additional sources of funding will enable UK suppliers to benefit from the significant growth the industry expects to see in the decades ahead.
John Pritchard, President Civil Airframe, GKN Aerospace, said:
A strong and competitive UK supply chain is fundamental to the future success of our aerospace sector. GKN Aerospace is pleased to support the British Business Bank and UK Government’s initiative to establish an aerospace supply chain fund, helping innovative UK suppliers access the capital they need to invest, scale and succeed.
Strengthening the supply chain is critical to securing long-term growth, boosting UK manufacturing capability and maintaining the UK’s position as a global aerospace leader.
Kevin Craven, CEO of the ADS Group, said:
The UK’s aerospace sector is entering a period of significant opportunity, with rising aircraft production rates, growing global demand and new programme opportunities on the horizon.
This fund is a welcome step towards helping our supply chain seize those opportunities, and we look forward to working with the UK Government and the British Business Bank to ensure our industry has the access to capital it needs to invest and compete globally.