Industry welcomes plan for £2bn aerospace institute

The Government is investing £1bn and the aerospace industry has promised to match that figure.

The institute will help to develop the next generation of quieter and more energy-efficient aircraft and the investment will secure up to 115,000 jobs in the aerospace industry and its supply chain.

Engineering groups in Yorkshire welcomed the news.

Philippa Oldham, head of transport and manufacturing at the Institution of Mechanical Engineers, said: “This will not only help secure the UK’s market share by stimulating research & development and innovation, but also provide the stability for the industry and its supply chain, that will lead to the creation of another 115,000 jobs.

“The UK needs to be at the forefront of technologies like renewable and intelligent passenger aeroplanes, if it is to compete with countries like the US and China.

“This announcement shows commitment from the UK Government to the country’s manufacturing sector – a sector that is so critical to rebalancing our economy.”

Andy Tuscher, region director for manufacturers’ organisation the EEF, said: “This is a positive development for the aerospace sector and the companies in its supply chain.

“The growth partnership has begun to set the course for ensuring the UK aerospace sector has the expertise and capacity to be world leading for the long term and getting ahead of the curve in the development of key technologies is an important part of this.”

The announcement was made by Deputy Prime Minister Nick Clegg.

“Aerospace experts with highly specialised skills are working hard to make sure the UK remains Europe’s number one aerospace manufacturer,” he said.

“We’re doing all we can to maintain this jewel in our crown, which is why Government is working hand in hand with industry to inject £2bn into a unique long-term strategy to maintain Britain’s position as the centre of aerospace technology.

“The UK’s best technical experts can ensure we remain the world’s preferred supplier and continue to build and design the planes of the future – lighter, quieter, faster and more fuel- efficient.”

Among the firms taking part in the Aerospace Technology Institute are Airbus, GKN Aerospace, Rolls-Royce, ADS, Messier-Dowty and AugustaWestland.

Business Secretary Vince Cable, who chairs an aerospace business leaders’ group, said: “This long-term commitment of £2bn investment in aerospace research and development – half Government, half private – will anchor the sector in the UK for a long time to come.

“Our aerospace sector already supports more than 3,000 companies and employs 230,000 people across the UK.

“The potential for growth is huge. By 2031 the civil aerospace market will be worth in excess of 4.5 trillion US dollars.”

Marcus Bryson, chief executive officer of GKN Aerospace and Land Systems and co-chair of the Aerospace Growth Partnership, said: “The announcement is the culmination of a lot of hard work from ministers, civil servants, academics, ADS and industry through the AGP.

“The creation of an Aerospace Technology Institute puts the UK in a strong position to deliver the technologies, skills, capabilities and investment we need to take advantage of the exciting growth opportunities that are forecast for the sector.

“There is still much to do, but this announcement is a significant step forward and there is no doubt that it will help safeguard this valuable sector to the benefit of the nation for decades to come.”

The Government hopes the news will boost the manufacturing sector as it struggles to revive a flagging economy.

Aerospace is one of Britain’s most important industrial sectors.

Almost all the Government contribution is new money, the Department for Business, Innovation and Skills said.

Getting the balance right

The announcement of a new aerospace institute comes two days ahead of the Budget, in which finance minister George Osborne is expected to stick to his guns on austerity, despite mounting calls for a change of course in an economic environment characterised by near-zero growth and slow progress on deficit reduction.

The Government also said it had committed an additional £500m to boosting sectors where Britain has a comparative global advantage, such as agricultural technology and life sciences.

Katja Hall, CBI chief policy director, said: “This is an ambitious strategy showing the Government can balance the long view with shorter-term priorities.”