Government unveils £4.5 billion funding plan for manufacturing

Ministers have said a multi-billion pound funding package will boost and drive growth investment in British manufacturing.

Business Secretary Kemi Badenoch said on Sunday that the country will not be drawn into a “distortive subsidy battle.”

The government has set out their plan to boost key sectors, and Badenoch said the UK will be “globally competitive” in the battery supply chain for electric vehicles.

Aerospace companies and the car makers along with clean energy firms will benefit from a £4.5 billion fund which will be for “strategic” manufacturing sectors.

Last week during the autumn statement the Chancellor Jeremy Hunt announced the major funding plan for manufacturing.

Badenoch said, “Other countries have embarked on large tax and spending sprees to claim a share of the global manufacturing market.

“I have been clear throughout that the UK will not be drawn into a distortive subsidy battle.

“For those of us who believe in the power of the market, the key to unlocking continued growth in our manufacturing industry is capital investment from the private sector, which sustains jobs and growth for the UK.

“No business secretary can pick winners, but Government can help companies succeed by removing obstacles in their way and focus on improving the business environment to ensure the sector is competitive.”

Prime Minister Rishi Sunak said, “Today’s plan will not only give the industry the long-term certainty they need to grow and invest further in the UK, but it will also lay the foundations to create more jobs and opportunities for people across the country.”

Shadow business and trade secretary Jonathan Reynolds said, “The Conservatives have conceded Labour was right to say our world-class industries need a government on their side, investing in the future.

“The difference is Labour would back British business and workers with a proper industrial strategy, a clear public plan that attracts private investment, and sees government work in partnership with industry, to ensure jobs and opportunities remain in Britain.

“The Conservatives seem only to be able to write cheques and press releases with no proper plan.”