The Chancellor said he was “targeting funding to support sectors in which the UK is, or can become, a global leader.” Photo: Dan Kitwood/Getty Images Europe
Jeremy Hunt has pledged to invest £4.5 billion in manufacturing to keep the UK “at the forefront of the global transition to net zero”.
Electric cars, offshore wind and carbon capture technologies are all expected to receive additional funding from 2025 – following the expected general election date next year.
The Chancellor said he was “targeting funding to support sectors where the UK is or may be the leading one in the world.” .
He said: “Our £4.5 billion will multiply the amount of funding received from the private sector and will in turn help grow our economy, creating more skilled and better paid jobs in the new industries that will be built for the long term.”
The proposals would see more than £2 billion go into the car industry.
Mr Hunt told the BBC last night that he had lobbied Elon Musk to opening of a Tesla plant in the UK.< /p>
His comments come as the government prepares to publish its battery strategy next week, which will set out plans to create a “globally competitive battery supply chain in the UK by 2030”.
It also plans spend £1 billion. on aerospace and zero-emission vehicle development. Around £150 million will also be earmarked for the development of self-driving cars.
A further £960 million will go towards a green industry growth accelerator, which the government hopes will boost clean energy production, and a further £500 million will go towards life sciences.
The Treasury said it would should “increase resilience for the future.” health emergencies and benefit from the UK's world-leading research and development.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the spending pledge “sends a strong signal that the UK is open for business.”
He said: “With almost £20 billion committed sector into next-generation plants and technologies this year alone, demonstrating the scale of investment that such support can attract and the result of significant collaboration between government and industry. .
“This will benefit not only the auto sector but the entire country in terms of growth, good-paying jobs and productivity.”
It comes as the government is under pressure to find ways to stimulate the economy while balancing the balance ahead of next week's autumn statement.
The Chancellor is expected to announce growth-boosting tax cuts, including an extension of the full business investment spending regime.
It was also revealed on Friday that Mr Hunt is considering tax breaks for pubs and restaurants. after warnings that without government action, some companies could go bankrupt.
This could come in the form of an extension to a 75 percent rate cut for hospitality firms and small businesses, reports Bloomberg.
Sam Richards, director of campaign group Britain Remade, said the main issue holding manufacturers back was regulation.
He said: “If ministers really want to boost economic growth and create jobs, they must overhaul Britain's creaking planning rules – making it faster, easier and easier to get started on major infrastructure projects.
“These delays are not only slowing the transition to net zero, but are also having a huge impact on businesses around the world. supply chain – limiting investment and slowing job creation.”
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