PRESS RELEASE : Over £200 million to help UK lead the way on greener air travel [June 2023]

The press release issued by the Department for Business and Trade on 20 June 2023.

Industry Minister Nusrat Ghani has announced more than £200 million in funding for cutting-edge UK aerospace projects at the 2023 Paris Air Show.

• Government announces £218 million of funding for groundbreaking R&D aerospace projects, supporting jobs and growth across the UK.
• Funding will help develop cutting-edge green aviation technology and grow UK’s share of the global aerospace market.
• Industry Minister announces package on first day of Paris Air Show – the world’s largest event for the civil aerospace sector.

Projects to help the UK lead the way on greener air travel and deliver on one of the Prime Minister’s five priorities to grow the economy, are to receive more than £200 million in funding, Industry Minister Nusrat Ghani has confirmed today [20 June].

A total of £218 million combined government and industry funding has been announced to develop new green innovative landing gear, and lower carbon and more efficient aircraft wings, engines and sensors.

The funding, being delivered through the Aerospace Technology Institute (ATI) Programme, will secure more high-skilled jobs and increase investment in aerospace technology across the UK.

The joint commitment with industry to invest in new aircraft and manufacturing technologies is set to help secure at least £20 billion of further private investment in aerospace in the UK and support over 100,000 jobs. This delivers on the Prime Minister’s commitment to grow the economy, creating better-paid jobs and opportunity right across the country.

Announcing the funding at the Paris Air Show, Minister for Industry and Economic Security Nusrat Ghani said:

We’re growing the economy and supporting high-skilled, high-wage careers across the UK by backing our world-leading sectors like aviation.

We want to achieve net zero air travel by 2050, and I want UK firms to lead the way developing the exciting technologies of the future. Backing our innovators will attract even more investment and create massive export opportunities for British firms.

Backed by the Government, the ATI funds world-class R&D in the UK aerospace sector, and this funding builds on £3.2 billion of ATI support from government and industry for the sector since 2013.

This support has backed over 300 innovative R&D projects and supported thousands of high-wage, green jobs, 90 percent of which are outside of London and the South East.

The cash injection will support ten groundbreaking new projects led by world-renowned companies including Airbus and Rolls-Royce. They will be delivered alongside over 40 UK-based partners, helping to develop greener, lower carbon and more efficient aircraft equipment such as engines, landing gear, wings and sensors.

Airbus UK Chairman and General Counsel John Harrison said:

The strong partnership we have with DBT and the ATI enables Airbus to develop new technologies that will help boost the skills we need to keep aerospace manufacturing in the UK.

Finding scalable solutions can’t be done alone so the ATI programme draws together UK industry leaders, academics and research organisations who are all making strides to bring our aircraft and industrial systems up to the level we need for a decarbonised future.

Alan Newby, Rolls-Royce Director Aerospace Technology and Future Programmes, said:

We greatly value the continued long-term partnership we have with both the Department for Business and Trade and the ATI, accelerating important research that improves our manufacturing processes and the performance of both our current and future products.

These projects will improve both our cost competitiveness and the product performance of our current and future engines, which is vital for meeting industry and Government Net Zero targets. This work will involve collaboration with a broad ecosystem of academic, research centres and SME partners across the UK that creates value across the country and helps us to reach our goals.

While at the Paris Air Show this week, Minister Ghani will be promoting the UK’s world-class aerospace sector – which contributed £10.9 billion to the economy in 2022 – to senior leaders of international companies, helping move towards the £20 billion investment commitment, and connecting UK firms at the show with international partners to boost export opportunities.

She will also encourage greater investment in the UK’s aerospace sector, promoting the ATI Programme – which has a budget of £685 million between 2022-2025 – and the UK sector’s world-class R&D offer on the global stage at the Air Show.

Gary Elliott, CEO of the Aerospace Technology Institute said:

The investment through the ATI Programme that the Minister has announced today will support a range of world-class research projects in technologies to improve the sustainability of aerospace, from new design processes to new materials.

The ATI is proud to join the Minister at the Paris Air Show to showcase the best of UK innovation and technology to a global audience.

Between 2014-2025, government and industry is expected to co-invest £4 billion in the aerospace sector, developing new ultra-efficient and zero emission aircraft technologies.