UK Edition
Aerospace industry pitches for chunk of Government's£2bn research fund
Britain’s aerospace industry is pitching for a slice of the £2bn pledged by Prime Minister Theresa May to boost science and technology research, saying the cash will help deliver high-skill, high-value jobs for the country.
Industry association ADS wants Wednesday's Autumn Statement to provide an extra £50m a year for the Aerospace Technology Institute (ATI), saying as well as generating an economic boost, such a move will also send a "powerful" message about the sector in a Brexited Britain.
Jointly funded by the industry and government, with business matching the Government’s £150m a year investment, the institute conducts research into new products and processes to ensure Britain’s aerospace industry remains at its current world-class level.
The UK currently has the world’s second largest aerospace sector, turning over £31bn a year, but ADS says with the industry growing rapidly as demand for new aircraft rises, extra funding could mean this turnover could be much larger.
“Right now we have more good quality bids for ATI research than we have funding for,” said Paul Everitt, ADS chief executive. “There are many opportunities coming up, such as a new ‘middle of the market’ 757 replacement from Boeing and new engines for new jets. The UK must not miss out on these projects.”
Development of new technologies and products in aerospace is recognised as being “sticky”, meaning that manufacturing tends to follow the research, and ADS studies claim that each £1 invested in R&D generates £7 for the wider economy.
Mr Everitt added the government putting extra funding into the industry would also show that the UK is committed to attracting international business despite the country being committed to leave the EU.
“Globally there is no doubt about the UK aerospace industry’s capability and technology," he said. "Not sending a message that keeps the momentum would be a missed opportunity.
“The industry doesn’t want to wait two years to see what Brexit will mean, a delay which would push us two years behind our rivals.”
ADS would also like to see the Autumn Statement contain measures to encourage supply chain companies to invest in productivity, as well as tax reforms which do not penalise business for investing in new new equipment.