Multi Billion Pound UK Commitment To Long-Term Industrial Strategy

The industrial strategy for aerospace has been developed by government and industry. Launched today by Deputy Prime Minister Nick Clegg during a visit to Airbus in Filton, it sets out how they will ensure the UK continues to thrive in the face of increasing global competition and is able to exploit rapid changes in technology.

Ministers also confirmed an additional £500 million of funding for other key sectors in its industrial strategy where the UK has a comparative global advantage, such as agricultural technology and automotive. “Life Sciences One Year On” was published in December 2012 and strategies in all eleven key sectors will be published in the coming months to help secure sustainable future growth in the economy. The government aims to at least double the £500 million with industry funding by working in partnership with business.

Underpinning the aerospace strategy is £2 billion of investment over seven years to create a UK Aerospace Technology Institute (ATI). Government will provide over £1 billion funding with industry matching this amount.

The ATI will allow industry and academic researchers to develop technology for the next generation of quieter, more energy efficient aircraft. It will secure in the UK the research and development activity necessary to win work on future aircraft programmes. It is estimated this will secure up to 115,000 high value jobs in aerospace and its supply chain in the long term.

Deputy Prime Minister Nick Clegg said: “Aerospace experts with highly specialised skills are working hard to make sure the UK remains Europe’s number one aerospace manufacturer. We’re doing all we can to maintain this jewel in our crown, which is why government is working hand in hand with industry to inject £2 billion into a unique long term strategy to maintain Britain’s position as the centre of aerospace technology.

“The UK’s best technical experts can ensure we remain the word’s preferred supplier and continue to build and design the planes of the future – lighter, quieter, faster, and more fuel efficient.”

Business Secretary Vince Cable, who chairs an aerospace business leaders group, said:

“This long-term commitment of £2 billion investment in aerospace Research and Development – half government, half Private – will anchor the sector in the UK for a long time to come.

“Our aerospace sector already supports more than 3,000 companies and employs 230,000 people across the UK. The potential for growth is huge. By 2031 the civil aerospace market will be worth in excess of $4.5 trillion.”