£250m for green aerospace projects ahead of Industrial Strategy

This news announcement is edited but can be viewed in full via the Department for Business and Trade here: 

On 17 June, Industry Minister Sarah Jones announced at Paris Air Show that UK aerospace will be boosted by more than £250 million funding for cutting-edge aerospace technology projects which will drive greener air travel.

The combined funding from government and industry will drive forward the development of cutting-edge technologies that will help to secure the future of the UK’s aerospace sector. This includes advancements in gas turbines, hydrogen-powered flight and the use of laser technologies for large-scale aerostructure manufacturing.

It will help attract even more investment into the UK’s world-leading aerospace sector and support thousands of high-skilled jobs outside of London and support the economy.

The announcement comes as new figures from the industry’s trade association ADS show the UK’s aerospace sector added £13.6 billion to the economy last year – an increase of almost 50% compared to 2014 – and supported 100,000 direct jobs.

It marks the latest win for the UK’s world-class aerospace sector in the run-up to the launch of HM Government’s modern Industrial Strategy, which will target growth in the UK’s leading advanced manufacturing and defence sectors, and give businesses the confidence they need to invest in the UK.

Industry Minister Sarah Jones said: “This government is backing aerospace. This investment will keep it at the forefront of innovation, not only delivering economic growth but boosting the charge to net zero 2030…”

In the run-up to the launch of the Government’s Industrial Strategy this news is anticipated to support growth in the advanced manufacturing and defence sectors.

Smaller and medium size businesses across the UK continue to benefit from the ATI Programme, with more than 302 receiving support since 2013, and another 19 investing over £22.8m in innovation in today’s announcement.

Rolls-Royce Director of Research & Technology Alan Newby said: “Gas turbines are an engine for growth for the UK economy. We welcome the recognition of the technology’s vital role from the Government in supporting both national and economic security.

“Together, government and industry investment in future gas turbine technologies will enhance the UK’s global competitiveness and help secure UK jobs and exports for the decades ahead.”

Airbus UK Chairman John Harrison said: “It’s terrific to see ATI funding allocated to projects like our ZeroE Development Centre (ZEDC) that will be built at Airbus Filton, and for DecSAM which builds on the industry’s additive manufacturing capabilities.

“It’s initiatives like these that are absolutely critical to accelerating our decarbonisation journey and advancing sustainable, cutting-edge manufacturing. The continued ATI funding provides the UK aerospace industry with the confidence and stability it needs to fuel innovation.”

Aerospace Technology Institute Chief Innovation Officer Paul Adams said: “Today’s funding announcement, including our dedicated small and medium-sized company grants, supports critical world-leading research – vital to ensuring UK aerospace companies continue to provide great jobs and growth in future, whilst delivering on our ambitious environmental goals. This is a huge vote of confidence in UK aerospace and in British aerospace companies.”

The UK aerospace sector had an annual turnover of £34 billion in 2024 and spent £1.9 billion on business R&D – a record level, driven by ongoing investment in both sustainable technology and market manufacturing technology to help ramp up UK production.

Source:

£250m for green aerospace projects ahead of Industrial Strategy – GOV.UK