UK aerospace is set to receive a significant funding boost exceeding £250 million to accelerate the development of advanced technologies aimed at greener air travel, as announced by Industry Minister Sarah Jones at the Paris Air Show.
This joint investment from government and industry will support projects focused on innovations such as gas turbines, hydrogen-powered flight, and laser technologies for large-scale aerostructure manufacturing. The funding aims to secure the future of the UK aerospace sector, attract further investment, and sustain thousands of high-skilled jobs outside London, aligning with the Government’s Plan for Change and economic growth objectives.
Recent data from the aerospace trade association ADS highlights the sector’s growing importance, showing it contributed £13.6 billion to the UK economy in 2024, an increase of nearly 50% since 2014, and supports 100,000 direct jobs.
The announcement precedes the launch of the Government’s modern Industrial Strategy, which will focus on expanding the UK’s advanced manufacturing and defence industries, providing businesses with the confidence to invest domestically.
Industry Minister Sarah Jones said: “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.”
She added, “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.”
During the Paris Air Show, Minister Jones toured the UK pavilion and engaged with leading aerospace firms including Airbus, Rolls-Royce, and GKN, discussing ways to increase investment and promote the UK’s R&D capabilities globally.
The Aerospace Technology Institute (ATI) Programme, which has supported over 300 small and medium-sized businesses since 2013, will channel this funding. 19 smaller companies will invest more than £22.8 million in innovation as part of this announcement.
Rolls-Royce’s Director of Research & Technology Alan Newby commented: “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.” He added, “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.”
Airbus UK Chairman John Harrison said: “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,” he added
Paul Adams, Chief Innovation Officer at the Aerospace Technology Institute, added:
“Today’s 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 future, whilst delivering on our ambitious environmental goals. This is a huge vote of confidence in UK aerospace and in British aerospace companies.”
This investment reflects the UK’s commitment to maintaining its position as a global leader in aerospace innovation while driving the sector’s transition to net zero emissions by 2030.
