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£120m investment in UK aerospace

The Business Secretary has announced plans for a £120 million investment in the UK aerospace industry, in a move to cement the UK’s position as leader in the industry..

The investment will be split between the taxpayer and the private sector, and will include a £40 million investment steered by Rolls-Royce to develop greener aircraft engines, £15 million in 11 R&D projects and £6 million to educate aeronautical engineers to masters degree levels.

In a speech at the Farnborough air show, Dr Cable said that he had no problem with placing the spotlight on one particular industry.

He said: “In the past we were rather inhibited in government by being accused of picking winners.

The investment will be made alongside a “strategic vision” as detailed in the Aerospace Growth Partnership, which comprises of representatives from the Government and the private sector.

It is now hoped that this will help the UK to retain its status as the world’s second largest aerospace industry and the largest in Europe. This will include the establishment of an aerospace banking forum to help SMEs to secure finance.

Mr Cable is now considering establishing an equivalent to the Aerospace Growth Partnership for the defence industry, which has expressed concerns over an apparent lack of a joined-up government strategy for supporting defence contractors.

This was posted in Bdaily's Members' News section by Ruth Mitchell .