The UK government has announced plans to invest £4.5 billion in manufacturing in an effort to position the country as a leader in the global shift towards achieving net-zero emissions. The funding will be allocated to support industries such as electric cars, offshore wind, and carbon capture technology starting from 2025. The Chancellor of the Exchequer, Jeremy Hunt, emphasized the goal of targeting funding towards sectors where the UK already excels or has the potential to excel on a global scale.
The automotive industry is set to receive over £2 billion of the total funding, reflecting the government’s commitment to advancing the development and adoption of electric vehicles. Moreover, aerospace and zero-emission vehicles will benefit from a £1 billion investment. The government aims to encourage the growth of a globally competitive battery supply chain by 2030 through its upcoming battery strategy, which will be published next week. Additionally, the development of self-driving cars will receive £150 million in funding.
To foster clean energy manufacturing, the UK government plans to establish a Green Industries Growth Accelerator with an investment of £960 million. A further £500 million will be allocated to life sciences to strengthen the country’s resilience in the face of health emergencies and leverage its world-leading research and development capabilities.
These substantial investments in manufacturing have received praise from key industry figures. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, emphasized that the funding sends a clear message that the UK is open for business and will spur growth, high-value jobs, and productivity across various sectors.
As the government prepares to present its Autumn Statement, the Chancellor is expected to announce measures to stimulate economic growth, including tax cuts to encourage business investment. The government is also considering tax breaks for hospitality firms and small businesses, recognizing the challenges they face and the importance of supporting them during these times.
To maximize the potential of the manufacturing sector, stakeholders have emphasized the need for regulatory reform. Simplifying and expediting planning rules for major infrastructure projects, while ensuring a smooth transition to a net-zero economy, can unleash growth and job creation opportunities.
FAQ:
Q: What industries will receive funding from the UK government’s manufacturing investment?
A: The UK government plans to invest in sectors such as electric cars, offshore wind, carbon capture technology, aerospace, zero-emission vehicles, self-driving cars, clean energy manufacturing, and life sciences.
Q: How much funding will be allocated to the automotive industry?
A: Over £2 billion will be allocated to the automotive industry as part of the UK government’s manufacturing investment.
Q: What is the aim of the UK government’s battery strategy?
A: The battery strategy aims to establish a globally competitive battery supply chain in the UK by 2030.
Q: What other measures is the UK government considering to support the economy?
A: The government is considering tax cuts and breaks, including an extension of full expensing for business investment and potential tax breaks for pubs, restaurants, hospitality firms, and small businesses.
Q: What challenges do manufacturers face according to campaign group Britain Remade?
A: Britain Remade highlights that the main obstacle for manufacturers is regulation, specifically slow and complex planning rules that hinder investment and job creation.