Set to roll out from 2025 over a five-year period, this funding aims to provide the industry with long-term certainty for their investments, fostering stability and growth.

Eight manufacturing sectors will benefit from this financial commitment, with a substantial £960 million, earmarked for clean energy initiatives. The targeted sectors crucial for economic expansion, energy security, and levelling-up include automotive, aerospace, clean energy, and life sciences.

Over £2 billion is allocated to the automotive industry, emphasising support for the manufacturing, supply chain, and development of zero-emission vehicles. Simultaneously, £975 million is dedicated to aerospace, focusing on the production of energy-efficient and zero-carbon aircraft equipment.

The government's commitment to a Green Industries Growth Accelerator, backed by £960 million, underscores its dedication to clean energy manufacturing. This initiative aims to foster the expansion of robust, homegrown clean energy supply chains, covering areas such as carbon capture, electricity networks, hydrogen, nuclear, and offshore wind.

The investment aligns with the government's commitment to long-term decision-making and Prime Minister Boris Johnson's pledge to stimulate economic growth. The strategy seeks to ensure that the funding not only caters to successful sectors today but anticipates future industry needs.

The funding package is anticipated to unlock private investment, offer certainty to investors, enhance energy security, and both protect and create jobs. The approach has already mobilised £198 billion in public and private investment in low-carbon energy deployment since 2010.

As the UK prepares to host the second Global Investment Summit, this announcement reinforces the nation's commitment to innovation and growth opportunities in various sectors, including technology, sustainability, life sciences, advanced manufacturing, and creative industries.

Chancellor of the Exchequer, Jeremy Hunt, said: “Britain is now the 8th largest manufacturer in the world, recently overtaking France. To build on this success, we are targeting funding to support the sectors where the UK is or could be world-leading.

“Our £4.5 billion of funding will leverage many times that from the private sector, and in turn will grow our economy, creating more skilled, higher-paid jobs in new industries that will be built to last.”

Source: Billions of investment for British manufacturing to boost economic growth - GOV.UK (www.gov.uk)