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Birmingham Post
Birmingham Post
Business
William Telford

Government's £685m aerospace boost seen as huge opportunity for South West firms

The Government’s decision to inject £685m into green aerospace research has been described as a “huge potential bonus” for South West manufacturers.

Tim Jones, chairman of the South West Business Council (SWBC) has welcomed ministers’ “record” investment into the UK’s aerospace technology research programme, the Aerospace Technology Institute (ATI).

He said: “This is a huge potential bonus for us and every effort to secure this funding needs to be made. Our best chance will be for a single voice to be heard.”

The ATI will use the windfall for 2022/23-2024/25 - an increase of £235m on the previous three-year period - to drive forward the research and development of green aviation technology. Industry will provide co-funding, taking the total to more than £1bn.

The money will be used to support the development of zero-carbon and ultra-low-emission aircraft technology, cementing the UK’s place at the forefront of advancing new green technology, and supporting tens of thousands of jobs. The Government said the ATI Programme will reopen to new funding applications on Monday, April 4.

Mr Jones said cash could be of huge benefit to the South West, where aerospace is an important sector for the economy. He said that while the major manufacturers are based in the Bristol area - such as Airbus, Rolls-Royce, the supply chain extends throughout the region.

He said: “What is less visible is the large number of subcontractors spread evenly throughout the region with over 20 companies - Pall, Fine Tubes, UTC Aerospace Systems, Centrax, Leonardo being a few great examples.

“It is also hugely important that our powerful research, education and enterprise establishments are included, many of these are already running leading edge programmes.”

Since its formation in 2013, the ATI has been an “enormous” success, the Government said, and is already funding innovations like hydrogen aircraft and 3D printed components, which could one day help the global aviation industry transition to net zero.

The Government said the new financial commitment is a sign of its increasing ambition and will give large and small businesses the confidence to invest in the technologies that will bring civil aviation into the next generation.

Mr Jones said: “It is unusual that windfall funding appears in the direction of the South West. After the lacklustre Spring Statement we were expecting to batten down the hatches for the summer. The announcement of new grant funding in one of our key growth sectors comes out of the blue.”

John Harrison, chair of Airbus UK, an ATI partner, said: “As the aerospace and aviation sectors recover from the pandemic, this announcement by the UK Government is a much-needed boost for the future of aerospace research and technology.

“We have huge ambitions to make aviation net zero by 2050, which includes a hydrogen-fuelled passenger jet by 2035, so we welcome the support of the British Government to ensure Airbus, alongside our research partners, makes a major contribution to this global effort.”

The ATI Programme began in 2013, has secured more than 81,000 high value jobs and added £97bn in value to the economy. It co-funds industry-led innovation in civil aerospace technology and manufacturing, supporting the development of the next generation of zero-carbon emission or ultra-low emission aircraft, while growing the UK’s competitive position in civil aerospace. As a result of its success, the ATI Programme has received an extension to 2031.

Gary Elliott, ATI chief executive, said: “I am delighted that the UK Government’s commitment to R&T investment in sustainable aircraft has today resulted in an uplift to £685m for the UK aerospace sector over the Spending Review period, in addition to the commitment at the Budget that the ATI Programme will continue until 2031.

“With the support of the Aerospace Growth Partnership, and with government investment matched by industry, the ATI will be able to invest more than £1bn over the next three years in the cutting-edge technology needed to move towards our net zero targets. This has allowed us to reopen ATI funding to new applications from April and we will work with BEIS and Innovate UK to ensure that this funding drives UK economic growth and reduces global aviation emissions.”

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