04 March 2024 , 09:22
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Chancellor Jeremy Hunt is about to announce funding that he hopes will help to position the UK as "a world leader in manufacturing".
The funding package, thought to be around £360 million, will support research and development (R&D) as well as manufacturing projects in the life sciences, automotive and aerospace industries. Included in this package is a £92 million investment from both the Government and industry to extend facilities that produce life-saving medicines and diagnostics products.
There's also a £200 million joint investment for zero-carbon aircraft technology. The aim is to develop a more sustainable aviation sector. Nearly £73 million is being invested in automotive technology.
Mr Hunt said: "We're sticking with our plan by backing the industries of the future with millions of pounds of investment to make the UK a world leader in manufacturing, securing the highly skilled jobs of the future and delivering the long-term change our country needs to deliver a brighter future for Britain."
The hope is this funding will draw even more investments from the private sector and reassure investors. Meanwhile, shadow business secretary Jonathan Reynolds criticised the Government saying it is "incapable of providing the long-term stability manufacturing needs to thrive. Recycled announcements won't be enough to turn around the lowest business investment in the G7."
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Mr Hunt will announce on Monday that the Government's investment package is part of a plan to grow the economy, boost health resilience and support jobs, ahead of the Budget. This funding will be given to several companies and projects that are creating cutting-edge technology in sectors key to economic growth.
Included in this is £7. 5 million for two pharmaceutical companies who are investing a combined £84 million to expand their manufacturing plants in the UK. Almac, a pharmaceutical company based in Northern Ireland, makes drugs to treat diseases like cancer, heart disease and depression.
Ortho Clinical Diagnostics, located in Pencoed, South Wales, is growing its facilities that produce testing products used to identify a range of diseases and conditions. Companies will soon be able to apply for a share of the £520 million funding for life sciences manufacturing announced last year.
This is aimed at building resilience for future health emergencies such as flu pandemics and capitalising on the UK's world-leading R&D. Competitions for large-scale investments will open for expressions of interest this summer and for medium and smaller sized companies in the autumn.
The Government said that more than £2 billion across five years from 2025 was announced in the autumn statement to unlock investment in the manufacturing and development of zero-emission vehicles, batteries and supply chains. The Government is moving forward with the new Auto2030 programme, which will offer future support. Companies can still apply for current schemes.
Business Secretary Kemi Badenoch said on Monday that this announcement adds to the Advanced Manufacturing Plan. This plan helps industry grow and invest in the UK with £4.5 billion of support. She sai: "Our plan for the British economy is working which is why firms like Airbus and BMW are continuing to bet on Britain."
Science Secretary Michelle Donelan talked about the UK's life sciences sector, worth £108 billion. It has over 300,000 skilled people making new drugs and health tools. She said: "We fuel this progress by fostering a dynamic environment where cutting-edge technologies like AI and genomics meet world-class research to create the next generation of healthcare solutions, including in our NHS."