UK Aerospace Receives £250m Funding to Boost Manufacturing
The UK’s aerospace manufacturing industry is set to benefit from more than £250m in combined government and industry investment, supporting cutting-edge green aerospace technology projects at major manufacturers including Rolls-Royce and Airbus.
Boosting advanced aerospace manufacturing in the UK
Announced by Industry Minister Sarah Jones at the Paris Air Show, the funding will support the development of advanced manufacturing technologies, including next-generation gas turbines, hydrogen-powered flight systems and laser-based techniques for large-scale aerostructure production.
This investment strengthens the UK’s position in sustainable aerospace manufacturing, while helping attract further industrial backing and supporting thousands of high-skilled roles outside London.
It aligns with the government’s Plan for Change and broader ambitions to grow the UK economy through strategic support for manufacturing.
UK aerospace sees sustained growth
The announcement coincides with new data from industry trade association ADS, showing the aerospace sector contributed £13.6bn to the UK economy in 2024 – a rise of nearly 50% compared to 2014 – and directly supported 100,000 jobs.
This marks another significant step for the UK’s advanced manufacturing sector ahead of the upcoming launch of the government’s Modern Industrial Strategy, which aims to drive further growth in aerospace and defence manufacturing.
Industry Minister Sarah Jones says: “This government is backing aerospace. This investment will keep it at the forefront of innovation, not only delivering economic growth but boosting the charge to net zero 2030, two key pillars of our Plan for Change.
“This is the latest win for British aerospace in the run-up to the launch of our Industrial Strategy, which will turbocharge growth in our advanced manufacturing and defence sectors to take them to new heights, bringing new high-skilled jobs to every corner of the UK.”
In 2024, the UK aerospace sector had an annual turnover of £34bn and spent £1.9bn on business R&D – a record level, driven by ongoing investment in both sustainable technology and market manufacturing technology to help ramp up UK production.
Investing in UK aerospace SMEs
Large manufacturers like Airbus and Rolls-Royce will not be the only beneficiaries of this push to promote the UK aerospace industry.
SME businesses across the UK will continue to benefit from the ATI Programme, with more than 302 receiving support since 2013, and another 19 investing over £22.8m in innovation coinciding with the government’s recent announcement.
The ATI Programme is a joint industry and government investment. Designed to competitively offer funding for research and technology development in the UK, it seeks to maintain and grow the UK’s competitive position in civil aerospace and accelerate the transition to net-zero aviation.
Positive industry response
Alan Newby, Director of Research & Technology at Rolls-Royce, says: “Gas turbines are an engine for growth for the UK economy. We welcome the recognition of the technology’s vital role from the government in supporting both national and economic security.
“Together, government and industry investment in future gas turbine technologies will enhance the UK’s global competitiveness and help secure UK jobs and exports for the decades ahead.”
John Harrison, UK Chairman at Airbus, says: “It’s terrific to see ATI funding allocated to projects like our ZeroE Development Centre (ZEDC) that will be built at Airbus Filton, and for DecSAM which builds on the industry’s additive manufacturing capabilities.
“It’s initiatives like these that are absolutely critical to accelerating our decarbonisation journey and advancing sustainable, cutting-edge manufacturing. The continued ATI funding provides the UK aerospace industry with the confidence and stability it needs to fuel innovation.”
Paul Adams, Chief Innovation Officer at the Aerospace Technology Institute, says: “[The] funding announcement, including our dedicated small and medium-sized company grants, supports critical world-leading research – vital to ensuring UK aerospace companies continue to provide great jobs and growth in the future, whilst delivering on our ambitious environmental goals. This is a huge vote of confidence in UK aerospace and in British aerospace companies.”
