Business and Trade Secretary Jonathan Reynolds tells auto leaders the Government has “laid the foundation for this sector to succeed” following publication of the Industrial Strategy ‘s Advanced Manufacturing plan.
Reynolds will deliver a speech to 300 industry leaders at the SMMT International Automotive Summit in London today [24 June] where he will say that the UK auto sector will be boosted by a £2 billion funding package to 2030 and an additional £500m to 2035.
The plan will deliver a 10-year commitment and provide certainty to the sector, helping to ensure that the UK remains at the forefront of zero-emission vehicle development through DRIVE35 (Driving Research and Investment in Vehicle Electrification), a new programme which will support tens of thousands of jobs as part of the Government’s Plan for Change.
This funding commitment forms part of government’s bold ambition to significantly increase business investment in the advanced manufacturing sector by 2035, giving British firms an edge in the frontier industries of the future and driving growth across the UK.
This includes funding of up to £2.3 billion over 10 years to extend the Aerospace Technology Insitute Programme, £625 million in construction skills to train thousands of new workers to deliver infrastructure in support of advanced manufacturing, as well as investing £452 million to 2030 for the Battery Innovation Programme to increase domestic production.
With 80 percent of UK-made cars exported, the Business Secretary is expected to set out how government is improving trade conditions for exporters, citing the UK as the first country to sign a deal with the United States which reduces tariffs for the sector – alongside recent deals struck with the EU and India, in the run-up to the launch of the UK’s Trade Strategy this week.
Business and Trade Secretary Jonathan Reynolds is expected to say:
“Economic growth is our number one priority, and by funding our world leading advanced manufacturing sector we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK.
“Our modern Industrial Strategy will ensure the UK is the best country to invest and do business in, strengthen our advanced manufacturing sector, support tens of thousands of jobs, and help put more money in people’s pockets as part of our Plan for Change.
“Government and business working hand in hand to make working people better off is what this Government promised and what we will deliver.”
Chief Executive of SMMT Mike Hawes said:
“The publication of an Industrial Strategy – one with automotive at its heart – is the policy framework the sector has long-sought and Government has now addressed. Such a strategy – long-term, aligned to a trade strategy and supported by all of Government – is the basis on which the UK automotive sector can regain its global competitiveness.
“Making the UK the best place to invest now depends on implementation, and implementation at pace, because investment decisions are being made now against a backdrop of fierce competition and geopolitical uncertainty. The number one priority must be addressing the UK’s high cost of energy, enabling the sector to invest in the technologies, the products and the people that will give the UK its competitive edge.”
CEO of Vertical Aerospace, Stuart Simpson said:
“The UK’s long-term economic growth depends on creating an environment in which emerging industries can flourish – from clean energy to advanced manufacturing.
“The Government’s new Industrial Strategy is an essential part of realising this vision, and Vertical Aerospace is perfectly placed to help deliver it.
“From our Bristol-base, we’re developing world-leading electric aircraft, creating skilled jobs and driving a major new global export opportunity.
“With strong and sustained Government support, the UK can be a world-leader in this emerging trillion-dollar industry, and we look forward to working closely with the Government to seize this moment.”
CEO of technology company Siemens in the UK, Carl Ennis said:
“The industrial strategy presents a vital opportunity to harness the full potential of UK business. By lowering electricity costs and providing funding for high growth sectors, it will create the right environment for businesses to accelerate investment and unlock productivity gains through digital technologies.
“At Siemens, we believe that deploying advanced technologies, from AI and automation to digital twins and smart infrastructure, is no longer optional, but a national imperative to secure organisations’ resilience and decarbonise society.
“We welcome the Strategy’s emphasis on long-term certainty and support for key growth sectors, such as Advanced Manufacturing, and frontier technologies like Batteries or Zero Emission and Connected Automated Vehicles. And we are committed to working with government, industry, and academia to ensure that the UK leads in the deployment of the technologies needed to deliver an industrial base that is future-ready, inclusive, and globally competitive.”
CEO of the High Value Manufacturing Catapult, Katherine Bennett CBE said:
“The publication of the modern industrial strategy is a pivotal step towards transforming the UK into an industrial powerhouse.
“The High Value Manufacturing Catapult has a proven track record of turning policy into progress, investing more than £1 billion in a nationwide network of research and development facilities. We now have the opportunity to go further and faster, scaling our impact in the regions in which we operate and deepening our commitment to driving national economic growth.
“As partners to government we have helped shape the strategy and the advanced manufacturing sector plan. We now look forward to supporting delivery to ensure the UK has the people, the places and the potential to be a net zero manufacturing superpower.”
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