Chancellor of the Exchequer of the United Kingdom Jeremy Hunt on Monday, March 4, announced new funding designed to support the UK manufacturing sector.
The provision of financing became known a few days before Mr. Hunt made a statement on the country’s budget on Wednesday, March 6. According to the chancellor of the exchequer, the new budget program will be focused on achieving long-term growth goals.
The Treasury statement notes that firms in the area of life sciences, automotive, and aerospace research and development will be some kind of beneficiaries of a package of government and industry investments worth 360 million pounds (456 million US dollars). The statement does not specify what share of the funding will be provided by the Government of the United Kingdom.
Jeremy Hunt says that the announced monetary support will make the UK a world leader in the manufacturing industry. According to him, the current plan of the leadership of the United Kingdom in the relevant direction provides for efforts to ensure the development of industries of the future.
Jeremy Hunt, as above-mentioned, will present his draft budget, which is an extremely important event for UK Prime Minister Rishi Sunak, who is interested in reducing the significant gap between the positions of Conservatives and Labour, which have a higher level of sympathy from the electorate, in the opinion polls of the current political and socio-economic situation in the country. This issue is particularly relevant in the context of the upcoming elections expected later this year.
At the end of last week, during a conversation with media representatives, Jeremy Hunt said that his financial plan would be aimed at implementing measures to stimulate the growth of the economic system of the United Kingdom. Separately, he noted his intention to make progress in efforts to reduce taxes.
The media reports that about 200 million pounds of the announced financial support is intended for research and development in the aerospace sphere. Of this amount, 96 million pounds will be set aside for the implementation of projects led by Airbus SE. In this case, research initiatives aimed at developing energy-efficient aviation technologies with zero carbon emissions will become a priority.
Also, 92 million pounds will be invested in the area of life sciences. Almost 73 million pounds will be set aside for the automotive sector. In this case, advanced research projects will be a priority. In the context of related activities, the main goal is to increase the level of efficiency and competitiveness of electric vehicles. With the back of government funding for more than 36 million pounds set aside within the framework of the Advanced Propulsion Centre UK (APC) competitions, four projects will be implemented to develop technologies for the next generation of vehicles, the operation of which is carried out through the use of electricity.
It is worth noting that about six months ago, Rishi Sunak postponed the prohibition of a ban on the sale of new gasoline and diesel cars in the United Kingdom for five years, until 2035.
The UK government will also provide 7.5 million pounds to two pharmaceutical companies to expand production facilities. Almac in Northern Ireland, which manufactures medicines for the treatment of diseases such as cancer, heart disease, and depression, will receive these funds. Also, part of the funding is intended for Ortho Clinical diagnostics from Wales. This company produces products for medical testing.
Jeremy Hunt says that the financial support program, in addition to ensuring economic growth, will also create additional jobs in the United Kingdom. According to him, this investment initiative will bring about long-term changes.
Currently, the economic system of the United Kingdom is in a state that requires additional funding. In the summer of 2023, the IPPR think tank warned that the country was at the bottom of the G7 business investment standings. Separately, experts noted that the United Kingdom remains in the so-called doomed growth loop.
Last November, London announced the allocation of 4.5 billion pounds to increase investment in strategic manufacturing sectors, including automotive, aviation, clean energy, and life sciences.
Labor’s shadow business secretary, Jonathan Reynolds, was unenthusiastic about the funding announced on Monday. In his opinion, the Government of the United Kingdom is unable to provide the long-term stability necessary for the prosperity of the manufacturing sector.
As we have reported earlier, UK Falls Into Recession.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
