The UK government has unveiled a substantial £4.5 billion (nearly US$5.7 billion) funding initiative aimed at bolstering British manufacturing and stimulating economic growth, including £960 million earmarked for a Green Industries Growth Accelerator to support clean energy production.
The funding, which was announced Friday, will be available from 2025 for five years, providing industry with extended certainty regarding their investments.
A significant portion of the funding, over £2 billion, has been allocated to the automotive sector, while the aerospace industry is set to receive £975 million.
These allocations are intended to support the manufacturing, supply chain, and development of zero-emission vehicles, as well as investments in energy-efficient and zero-carbon aircraft equipment.
Furthermore, clean energy is set to receive £960 million, while £520 million will be directed towards life sciences in a move to enhance resilience for future health emergencies and leverage the UK’s position in world-leading research and development.
Given that manufacturing constitutes over 43% of all UK exports and employs approximately 2.6 million individuals, the funding is strategically targeted at sectors crucial to the nation’s economic strength.
Notably, emphasis is placed on industries undergoing pivotal changes, aligning with global efforts to transition to net-zero, such as the automotive sector’s shift towards zero-emission vehicles.
The Green Industries Growth Accelerator investment specifically focuses on expanding clean energy supply chains across the UK, encompassing carbon capture, utilization and storage, electricity networks, hydrogen, nuclear, and offshore wind.
This strategic move is aimed at positioning the UK to seize growth opportunities amid the global shift towards a net-zero economy.
The funding package seeks to unlock private investment, provide investor certainty, enhance energy security, and facilitate job creation and protection.
The announcement comes head of the second Global Investment Summit, scheduled for later this month, where innovative UK companies will showcase investment opportunities across various sectors.