Chancellor Jeremy Hunt Unveils £4.5 Billion Funding Boost for UK Manufacturers
In a bid to enhance the competitiveness of Britain’s manufacturers on the global stage, Chancellor Jeremy Hunt has announced a substantial £4.5 billion funding package.
The initiative aims to provide targeted support to key sectors, including car makers, the aerospace industry, life sciences, and clean energy firms.
Addressing Global Competition: Strategic Funding for Key Industries
The funding package responds to concerns that the UK could fall behind in the global race for investment, especially in the wake of a corporate tax increase from 19% to 25% earlier this year.
While acknowledging the larger subsidies offered by the US and the EU, Hunt emphasized that the UK will not engage in a global race on subsidies. Instead, the focus will be on providing strategic and targeted support.
Sector-Specific Allocations: Boosting Car Industry, Aerospace, Green Industries, and Life Sciences
The Treasury outlined the sector-specific allocations within the funding package, with £2 billion earmarked for the car industry, £975 million for aerospace, £970 million for green industries, and £520 million for life sciences.
The funding is intended to support the UK’s strongest and leading sectors, recognizing the transformation required in the car industry for the production of zero-emission vehicles.
Long-Term Planning: Funding Taking Effect in 2025
Set to take effect from the start of Whitehall’s next spending round in 2025, the funding package provides manufacturers with the opportunity to plan for the future. Chancellor Hunt highlighted the importance of long-term decision-making in sectors like manufacturing and clean energy.
ITM Power Showcase: Launching the Package at a Leading Hydrogen Technology Firm
The Chancellor unveiled the funding package at ITM Power in Sheffield, a cutting-edge UK-listed firm specializing in electrolysers – machines that split water into hydrogen and oxygen.
As hydrogen technology gains prominence in the transition away from fossil fuels, the funding aims to support firms like ITM Power, facilitating the production of hydrogen in an environmentally friendly manner.
Positive Industry Response: Boosting Sustainable Aviation and Skilled Jobs
Industry leaders, including John Harrison, chairman of Airbus UK, lauded the funding package for providing greater certainty for long-term investment in sustainable aviation and supporting highly skilled jobs in the UK.
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