Press release: New aerospace technologies to get £365 million funding

  • government and industry providing hundreds of millions of pounds for aerospace research and development (R&D) projects
  • £1.2 billion has already been invested in projects
  • Aerospace Growth Partnership to launch an updated strategy

Business Secretary Sajid Javid has today (12 July 2016) announced that government and industry have committed to providing almost £365 million of funding for new aerospace technologies, further enhancing the UK’s reputation as a world leading aircraft design and manufacturing hub.

The news, timed to coincide with this week’s Farnborough Air Show, builds on the £1.2 billion of funding government has already jointly invested through the Aerospace Technology Institute (ATI), which has contributed to 149 new projects, involving 188 different companies and organisations, including over 100 small and medium sized businesses.

The research projects will target different aspects of aircraft manufacturing and performance, driving up competitiveness, lowering costs, and helping to deliver environmentally-friendly aircraft with lower emissions and reduced noise.

Business Secretary Sajid Javid said:

Aerospace is a vitally important industry for the UK and it is one of our great manufacturing success stories, supporting over 230,000 jobs and generating over £30 billion a year for the economy. We are number one in Europe and world leaders in innovation, design and manufacturing parts for planes.

With government and industry investing nearly £4 billion by 2026, we are showing our continued commitment to this vital sector and our intention to keep the UK’s world-beating status. I am proud of our record supporting our great aero industry and we will continue to do all we can to help this high flying sector soar to even greater heights.

Also at Farnborough, the Aerospace Growth Partnership (AGP) updated the sector on the industrial strategy for UK aerospace. The AGP has transformed the way in which industry and government work together to secure the long-term future of one of the UK’s most important sectors.

A key feature of the strategy is industry’s Supply Chain Competitiveness Charter signed by the sector’s leading civil aerospace manufacturers. This will strengthen relationships between the large companies and their suppliers, working together to raise productivity and competitiveness.

Welcoming the new AGP strategy, Sajid Javid said:

Means of Ascent, the updated strategy for the UK aerospace industry, is a great piece of work and will really help with the partnership between government and industry. I am also extremely pleased to see that the industry has also developed a Supply Chain Competitiveness Charter which will help our smaller companies become even more productive and export more.

ATI Chief Executive Gary Elliott said:

This is the largest batch of ATI projects to be launched since operations started 3 years ago. It moves UK aerospace towards delivering the next generation of quiet and low emission aircraft, whilst also tackling immediate manufacturing challenges. The participants are a who’s who of global aerospace, as well as the UK supply chain and research base – a powerful demonstration of the strength of UK innovation.

Innovate UK Chief Executive Ruth McKernan said:

From the inception of Innovate UK 9 years ago, we have been working with companies large and small to make the UK a global centre of excellence for aerospace innovation. We look forward to continuing the highly successful partnership with industry, the Aerospace Technology Institute and government to deliver this goal.

ADS CEO Paul Everitt said:

This investment reinforces the value of modern industrial strategies and will help keep the UK at the forefront of global aerospace technology. The Aerospace Growth Partnership’s focus on the value of the UK supply chain and the steps required to sustain global competitiveness will help ensure the sector continues to make a growing contribution to our national prosperity.

Notes to editors:

  1. These projects have received funding from the aerospace research and development (R&D) programme, a £3.9 billion joint funding commitment from industry and government to support projects which build on the UK’s strengths and develop the products and manufacturing technologies that will best position the UK to sustain its global competitiveness. The programme is delivered in partnership between the Department for Business, Innovation and Skills, Innovate UK and the Aerospace Technology Institute (ATI). The commitment was made in 2013 and the 2015 Spending Review announced that the funding would be extended by 6 years to 2025 to 2026, worth an additional £900 million from government.

  2. The ATI was created by government and industry to guide investment into research and technology projects that will sustain and enhance the UK’s competitive advantage. Its technology strategy defines the best combination of capabilities, technologies and products to advance next-generation civil aircraft; enabling industry to exploit anticipated global growth, and deliver value to the UK economy through the sector’s high productivity and skills. The ATI has now published a Technology Strategy and Portfolio Update 2016.

  3. Innovate UK is the UK’s innovation agency. It works with people, companies and partner organisations to find and drive the science and technology innovations that will grow the UK economy – delivering productivity, new jobs and exports and keeping the UK globally competitive in the race for future prosperity.

  4. Means of ascent: strategy for UK aerospace 2016


Press release: PM: UK remains at forefront of world aerospace as new investment and jobs are announced

  • £365m funding for new UK aerospace R&D projects
  • Major partnership with Boeing to bring 2,000 jobs to the UK and increase global supply chain opportunities for UK aerospace companies
  • Contract signed for 9 new P8 Maritime Patrol Aircraft

The Prime Minister has announced a new strategic partnership between Boeing and the UK, as well as nearly £400m for new aerospace R&D projects, ensuring we remain a global aerospace industry leader.

Ahead of the Prime Minister opening this year’s Farnborough air show, Boeing has confirmed that the company will create 2,000 new jobs in the UK and increase their R&D spending.

Boeing and the government intend to work together to build a new £100m P-8A operational support and training base at RAF Lossiemouth in Scotland, creating more than 100 new jobs.

To ensure the UK’s continued position at the forefront of global aerospace, a further £365m worth of aerospace R&D projects have been approved. These are jointly funded by industry and government. These are part of the work of the Aerospace Growth Partnership which will publish a new strategy at Farnborough setting out plans to maintain the UK aerospace sector’s leading position. This includes a new supply chain competitiveness charter signed by 11 major companies across the aerospace sector.

Following last week’s NATO summit, the Prime Minister will also confirm the UK has signed a contract to purchase 9 new Boeing P8 Maritime Patrol Aircraft to protect the UK’s new aircraft carriers. This underlines the UK’s determination to deliver on its Strategic Defence and Security Review commitments and providing a clear sign of the UK delivering on its pledge to maintain defence spending at 2% of GDP.

The Prime Minister said:

Whatever uncertainties our country faces, I want the message to go out loud and clear: the UK will continue to lead the world in both civil and defence aerospace. We aren’t just open for investment: we are a place the global aerospace industry wants to do business – as Boeing’s long-term partnership with the UK proves.

It’s also important to put government investment where it counts. That’s why we are jointly funding the new R&D fund with the aerospace industry and why I’m pleased we have today signed the contract for 9 new P8 Maritime Patrol Aircraft for the Royal Air Force, underlining the UK’s commitment to spending on vital defence.

Notes to editors

Boeing/UK joint initiative

Boeing will increase overall bid opportunities offered to UK suppliers and work with the UK government to enhance UK suppliers’ competitiveness. The aim of the initiative is to create the opportunity for UK companies to double their supply work with Boeing and to win higher proportions of content on future Boeing aircraft.

Boeing has signed the Aerospace Growth Partnership Supply Chain Competitiveness charter.

Boeing will make the UK its European base for training, maintenance, repair and overhaul across its defence fixed-wing and rotary platforms.

Additionally, Boeing and the government intend to work together to build a new £100m P-8A operational support and training base at RAF Lossiemouth in Scotland, creating more than 100 new jobs.

Boeing will continue to grow its commercial aviation services business in the UK.

Boeing will make the UK a base for defence exports to Europe and the Middle East, increasing UK employment, investment and tax revenue.

Aerospace Growth Partnership

The Aerospace Growth Partnership, started in 2010, will publish a refreshed industrial strategy ‘Means of Ascent’ at Farnborough – demonstrating government and industry’s continued commitment to investment in UK aerospace.

A further £365m of new aerospace R&D projects have been approved to commence, jointly funded by HM Government and industry. This is part of a total £4billion joint R&D commitment over 13 years to 2026.

New supply chain competitiveness charter signed by 11 global aerospace players with a presence in the UK.


Government response: Statement on Tata Steel’s strategy for its European businesses

Statement on Tata Steel’s strategy for its European businesses

Business Secretary Sajid Javid said:

The past few months have been a very uncertain time for Tata UK steel workers, particularly at Port Talbot. So Tata’s news today (8 July 2016) that they intend to explore strategic alternatives including a possible joint-venture with thyssenkrupp AG is encouraging, as is the fact that they have decided to separately sell their specialty steel and pipe businesses in Rotherham, Stocksbridge and Hartlepool. It is imperative that momentum is maintained to provide much needed security for workers and the wider supply chain.

I met with Tata’s Global Chairman Cyrus Mistry today and underlined that the government remains committed to doing all it can and that our package of commercial support still stands. We will continue to work closely with Tata to find a long-term solution for sustainable blast furnace steel manufacturing in Port Talbot.


Press release: Business Secretary to launch preliminary trade talks with India

  • Business Secretary Sajid Javid will be in Delhi today (8 July 2016) where he will launch initial discussions on the UK’s future trade relationship with India
  • first in a series of visits to key trade partners the Business Secretary is expected to undertake across the globe
  • Business Secretary also confirms government will rapidly build its expertise on trade, with up to 300 specialist staff to be in place by year end

Business Secretary Sajid Javid will kick-off preliminary trade talks with India later today (8 July 2016) when he meets the Indian Finance and Commerce Ministers during a series of discussions in Delhi.

The Business Secretary will use meetings with Indian Finance Minister Arun Jaitley and Indian Commerce and Industry Minister Nirmala Sitharaman to outline his vision for what a future trade relationship between the UK and India might look like outside the EU.

It is the first in a series of trade meetings the Business Secretary will conduct over the coming months, which also is expected to include trips to the USA, China, Japan and South Korea.

The Business Secretary has also confirmed that to aid in discussions, the government plans to rapidly build its trade capability – up to 300 specialist staff, including new trade negotiators – by the end of the year.

Business Secretary Sajid Javid said:

Following the referendum result, my absolute priority is making sure the UK has the tools it needs to continue to compete on the global stage.

That is why I am in India today to launch these initial trade discussions. There is a strong bilateral trade relationship between our 2 countries and I am determined that we build on this.

Over the coming months, I will be conducting similar meetings with other key trade partners, outlining the government’s vision for what the UK’s future trade relationship might look like.

As part of the discussions, the Business Secretary is expected to make clear that he would like the UK and India to have a trade agreement in place as soon as possible after the UK leaves the EU.

The Business Secretary has also been speaking to British diplomats this week, urging them to utilise their expertise and meet with their governments and local investors to make clear the UK remains an open and viable trade partner.

Speaking at the FCO Leadership Conference on Tuesday (5 July 2016), the Business Secretary urged diplomats to make it known to their countries’ governments that the UK was looking to expand its options for trade deals.

Trade and Investment Minister Lord Price has been in Hong Kong and China this week, attending the G20 trade ministers meeting in Shanghai and meeting key government and business representatives. This is part of the government’s engagement with key trade partners, reinforcing the UK’s ongoing commitment to maintaining and strengthening the economic relationship between the countries.

Alongside visiting Delhi, the Business Secretary will also be in Mumbai where he will meet senior Tata Group board members to discuss the ongoing sale of their UK steelmaking assets.

Notes to editors:

  1. India and the UK have always had traditionally close trade ties: the UK is the largest G20 investor in India, while India invests more in the UK than the rest of the European Union combined. India has also emerged as the third largest source of FDI for the UK.

  2. Last year, bilateral trade in goods and services between the 2 countries was £16.55 billion (in goods was £11.43 billion while trade in services was £5.11 billion)

  3. According to the government of India data, the UK is the third largest investor in India for the period April 2000 to September 2015, with cumulative inflows of $22.5 billion.

  4. In 2014 to 2015, the UK won a record number of investment projects and is India’s top investment destination in Europe. India is also Britain’s third biggest job creator in 2014, with a 65% increase in FDI.

  5. A new industry report by CII and Grant Thornton tracking Indian companies based in the UK has revealed that many of them are boosting growth rates in the country, registering a combined increase in revenue of £4 billion: from £22 billion in 2014 to £26 billion in 2015.

  6. According to London and Partners in 2015 Indians also become the second biggest job creators in London. Indian companies created 504 new jobs this year in London alone – second only to the Americans who created 1983 jobs.

  7. In 2014 to 2015 Indian investments in 122 FDI projects created 7,730 new jobs and safeguarded 1,620 jobs in UK.


Press release: Opportunities identified for oil and gas sector workforce

  • pipeline of energy sector projects likely to create demand for highly-skilled engineers
  • UK government publishes new blueprint to manage oil and gas sector skills
  • longer-term modelling could enable industry to deal more effectively with the cyclical nature of the market

A new online tool will help skilled workers in the oil and gas sectors find job opportunities in the wider engineering sector, supported by the pipeline of large energy and infrastructure projects.

The existing Talent Retention Solution scheme, which is currently used by over 1,000 companies in the engineering and manufacturing sectors, will now be supplemented by an additional website specifically for those working in the oil and gas industry. EngineeringUK estimates that the economy will need over 180,000 people with engineering skills per year to 2022.

The measures are outlined in the Oil and Gas Workforce Plan published by the Department for Business, Innovation and Skills (BIS) to ensure the industry can better plan for future workforce requirements over longer-term timescales, given the highly cyclical nature of the sector.

Business Minister Anna Soubry said:

The future success of our economy depends on having the people with the right skills in the right jobs, and that’s why it’s vital we retain the talents of our highly-skilled workers currently in the oil and gas industry.

There is already considerable demand for these skills whether it’s for nuclear new build, the fast-growing renewable energy sector or the nascent decommissioning industry.

UK government Secretary of State for Energy and Climate Change, Amber Rudd said:

The UK government stands 100% behind our oil and gas industry, the workers and families it supports, and the people who have worked tirelessly to steer it through these challenging times.

Our workforce in the UK is one of the mostly highly skilled in the world, and their valuable skills are transferable right across the engineering sector. The action we are taking today will ensure that we hold on to that talent and provide more opportunities for those most directly affected by the low oil price.

David Mundell Scottish Secretary said:

Engineers and skilled workers in Scotland’s oil and gas sector are world class, and many industries could benefit from their expertise and experience, from major infrastructure projects to new and innovative energy solutions.

While the sector has been tested over recent years, time and time again it has shown a capacity to rise to the challenges confronting it, and that is due to the resilience and skill of the people working within it. This tool will allow other industries to reap the rewards of the talent pool of the UK’s oil and gas workers.

In addition to the new online portal, the government expects workers in the oil and gas industry to benefit from the extension to Advanced Learner Loans. This means it is now possible to apply for loans for qualifications at Levels 3 to 6, which will be important for enabling workers in the oil and gas industry to study at higher levels and gain the skills to transition into infrastructure or other engineering sectors.

The pipeline for planned public and private infrastructure to 2021 and beyond is £425 billion. According to data published by the UK Commission for Employment and Skills last year (2015), the energy sector is already facing a substantial skills shortage, particularly for highly-skilled engineers and technicians.

Notes to editors:

  1. Oil and Gas Workforce Plan.
  2. The current Talent Retention Solutions online portal.
  3. The latest National Infrastructure Pipeline.
  4. Existing measures to support the oil and gas sectors include:
    * a new Inter-Ministerial Group comprising Amber Rudd (Energy Secretary), Anna Soubry (Business Minister), David Mundell (Scottish Secretary), Andrea Leadsom (Energy Minister), Oliver Letwin (Chancellor of the Duchy of Lancaster), Lord Price (Trade Minister), David Hinds (Exchequer Secretary) and Andy Samuel (Oil and Gas Authority)
    * a £1 billion fiscal package to reduce the additional taxes historically imposed on the North Sea, as well as to introduce targeted measures to encourage investment in exploration, infrastructure and late-life assets
    * a £20 million package of new investment in exploration, innovation and skills
    * funding for the £250 million Aberdeen city region deal
  5. Level 5 courses include Higher National Diplomas; National Vocation Qualifications at Level 4; BTEC Professional awards; certificate and diploma Level 5; and Diploma of further/higher education.


Press release: Business Secretary calls on industry to help shape UK’s future trade map

A letter outlining action already taken by government to engage businesses and planned next steps, following last week’s referendum outcome, has been sent today (3 July 2016) to over 100 of the largest businesses and trade organisations in the UK.

Penned by Business Secretary Sajid Javid and Trade and Investment Minister Lord Price, the letter follows a series of meetings that have taken place over the past week to engage businesses in an “ongoing dialogue” with government to hear their “priorities, issues and ensure we are clear on what you want to see in terms of the end result”. It provides an update on future engagement activity and asks businesses to contribute to “informing our approach and priorities for engagement with all of our international partners to set out the options for UK trade policy going forward”.

The Business Secretary and Trade and Investment Minister also confirmed that the Chief Executive of the Intellectual Property Office John Alty, has been asked to lead a team tasked specifically with engaging with businesses of all sizes on trade policy issues.

Business Secretary Sajid Javid said:

Now more than ever, businesses need certainty to ensure the best outcome for the UK economy in the coming months so it’s vital that the government maintains an open and continuous dialogue. This is all part of BIS’ Business Strategy to work collaboratively with businesses and we must keep on working together to make sure the world knows that the UK is open for business and remains an attractive place with which to trade and invest.

The letter has been sent to businesses including those who attended the Business Secretary’s business roundtable on Tuesday 28 June 2016, those who Lord Price has spoken to and met with over the past week and those who attended the Prime Minister’s business advisory group meeting on Thursday (30 July 2016).

It also asks what further work UK Trade and Investment (UKTI) could be engaged in to help them as a business find and capitalise on new export opportunities and attract inward investment.

Trade and Investment Minister Lord Price said:

As part of BIS’ wide-ranging business engagement activity, I have written to a number of companies and inward investors to reiterate that part of my role, as with my predecessors, is ensuring that government’s trade and investment policy is guided by their needs.

The first meeting of the new inter-ministerial group on business engagement, chaired by Mr Javid, will be held next week.