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1、Advanced Manufacturing Plan Contents Contents 1 Foreword by the Secretary of State 2 Executive Summary 4 Part 1:Overview of the UKs Manufacturing Sector 6 Part 2:The Advanced Manufacturing Plan 14 A:Investing in the Future of Manufacturing 14 B:Cooperating Internationally and Building Supply Chain R
2、esilience 26 C:Reducing Costs and Removing Barriers 31 Annexes 42 Annex I:Glossary 42 Annex II:Acronyms 43 Foreword by the Secretary of State When I became Business and Trade Secretary,I pledged that my department would be the department for economic growth.Growing the UK economy is closely entwined
3、 with growing our manufacturing industry,the sector contributes over 200 billion every year to the economy1 and creates over 40%of our exports.2 The United Kingdom has a proud history of manufacturing.The Steam Engine,invented here,revolutionised the global economy of the 19th Century.Research at th
4、e University of Oxford in the 1970s made the lithium-ion battery possible and will revolutionise our car sector in this century.We invented the worlds first COVID-19 vaccine.We are also now the 8th largest manufacturing economy in the world.3 We have made great progress this year.Tata have announced
5、 a 4 billion gigafactory,with up to 4,000 jobs attached.4 BMW have made a 600 million commitment to the UK automotive sector,which protected 4,000 British jobs.5 Government has confirmed five Investment Zones-each with an envelope of 160 million over ten years-which will focus on Advanced Manufactur
6、ing in South Yorkshire,Greater Manchester,East Midlands,West Midlands and the North East,all of which have secured anchor investment from businesses in advanced manufacturing.Airbus are investing over 100 million into the Welsh economy to increase production at Broughton,creating new jobs.This week
7、I was delighted that the Prime Minister and I were able to announce a 2 billion investment deal with Nissan to produce two new electric vehicle models in Sunderland.6 This is all within the context of difficult global headwinds,yet we have still had one of the fastest recoveries in the G7.7 My plan
8、for advanced manufacturing looks forward and builds on these successes.There are,however,risks for UK manufacturing as the world transitions to cleaner technology.Other countries have embarked on large tax and spending sprees to claim a share of the global manufacturing market.I have been clear thro
9、ughout 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 secreta
10、ry 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.Government can open markets overseas,with our independent trade policy and it can get out of the way of business at hom
11、e,with our new regulatory freedoms.The Advanced Manufacturing Plan invests in the future of manufacturing,opens markets,and removes obstacles for business.It is supported by 4.5 billion of funding to unlock investment in strategic manufacturing sectors,this includes 3 billion for automotive,includin
12、g batteries,and aerospace to 2030-which are developing cutting edge technology and driving our transition to net zero.It will ensure the UK remains one of the best places in the world to undertake cutting edge research and scale new products to market.For every 1 of 1 Office for National Statistics.
13、GDP output approach low-level aggregates.2023.2 Office for National Statistics.Trade in Goods:Manufactures.2023.3 Make UK.UK Manufacturing:The Engine of Our Economy.2023.4 Department for Business and Trade.Tata Group to Invest Over 4 billion in UK gigafactory creating thousands of jobs.2023.5 Depart
14、ment for Business and Trade.Major BMW EV announcement to take UK auto investment to over 6bn.2023.6 Prime Ministers Office and others.Nissan triples investment in electric vehicle production in the UK.2023.7 Office for National Statistics.GDP Quarterly National Accounts,UK.2023;Organisation for Econ
15、omic Co-operation and Development.Real GDP Forecast.2023.Government investment in the future of manufacturing we are leveraging 5 of additional private sector investment.I will also extend our successful Made Smarter programme to ensure leading SMEs across the manufacturing sector can benefit from d
16、igital technologies.I will continue to lead trade negotiations to help our manufacturing businesses embrace the opportunities of free and open trade.We must not be nave and choose protectionism where it appears to suit us.Free and fair trade is an opportunity and creates resilience in our supply cha
17、ins,which stretch across the world and are critical to our manufacturers.We have secured trade deals with 73 countries plus the EU,partners that accounted for 1.1 trillion of UK bilateral trade in 2022.8 I will continue to beat the drum for businesses within Government as well as with my internation
18、al partners.I know we need to continue to back UK businesses,which is why the Chancellor has delivered the biggest business tax cut in modern British history.We have made sure that energy costs are affordable through the British Industry Supercharger and made our approach to regulation more business
19、 friendly.We have also helped deliver 200,000 manufacturing apprenticeship starts in the last decade.9 The Advanced Manufacturing Plan builds on our heritage to deliver my ambition for the UK to be the best place in the world to grow a business.8 Department for International Trade.Annual Report and
20、Accounts 2022-2023.2023.9 Office for National Statistics.Apprenticeships and Traineeships:Subjects and Levels.2023.Executive Summary The UK is a global hub for advanced manufacturing.Our ambition is for the UK to be the best place in the world to start and grow a manufacturing business.Supply chains
21、 and technology are increasingly globally contested.But we wont be drawn into a distortive subsidy battle.Our advanced manufacturing strengths are supported by a strong business environment,a world class network of universities and innovation institutions,and a highly skilled workforce.We will build
22、 from these existing strengths to attract investment as we enter major investment cycles in clean and digital manufacturing technologies.We will build from our existing strengths ensuring the UK continues to lead in the development and deployment of clean and digital technologies.As part of our Adva
23、nced Manufacturing Plan we are prioritising:a)investing in the long-term future of manufacturing;b)cooperating internationally and building supply chain resilience;and c)reducing costs and removing barriers to boost competitiveness.a)We are investing in the long-term future of manufacturing by makin
24、g available 4.5 billion of funding to support strategic manufacturing sectors over 5 years from 2025.This will build on our existing interventions and successes to continue to take advantage of the transition to net zero and increasing digitalisation.Building on our commitment to the aerospace secto
25、r to 2031,we will extend our businesses programmes for the automotive and connected automated mobility(CAM)sectors,to 2030,confirming over 2 billion funding for automotive and 975 million for aerospace and allocating up to 150 million for CAM.We are supporting life sciences manufacturing with 520 mi
26、llion funding to build resilience for future health emergencies and capitalise on the UKs world-leading research and development.Through the new 960 million Green Industries Growth Accelerator(the Accelerator),we are supporting the development of green manufacturing industries,namely carbon capture,
27、utilisation and storage(CCUS),hydrogen,electricity networks and offshore wind.We are establishing a H2 taskforce to assess the manufacturing opportunities provided by hydrogen technologies as a dual multipower option.We are also extending the Made Smarter Adoption programme,expanding it to more smal
28、l and medium sized(SME)manufacturers across England in 2025-26,before working with the devolved administrations to explore expanding the programme further from 2026-27.b)We are cooperating internationally and building supply chain resilience by increasing the opportunities offered by free and open t
29、rade for our manufacturing businesses and pursuing the most ambitious programme of trade negotiations in the world.We are working to ensure the security of our vulnerable and critical manufacturing supply chains through pursuing and agreeing partnerships with key allies such as the United States and
30、 Japan,as well as boosting our domestic capabilities and strengths.Alongside this plan we are publishing our UK Battery Strategy,as well as our Critical Imports and Supply Chains Strategy in December.c)We are reducing costs and removing barriers to boost competitiveness by continuing to improve the
31、UKs business environment.This includes making full expensing permanent,a 50 million 2-year apprenticeships pilot to explore ways to stimulate training in growth sectors such as advanced manufacturing and the announcement so far of five new advanced manufacturing Investment Zones.We also published ou
32、r Connections Action Plan jointly with Ofgem to make it quicker and easier for businesses to connect to the electricity grid,as well as our Transmission Acceleration Action Plan to speed up the building of new transmission network infrastructure.By reducing costs and removing barriers,our plan offer
33、s a long-term incentive to attract investment in the sector.The Advanced Manufacturing Plan is building on the UKs heritage and strengths in manufacturing to deliver on our ambition to be the best place in the world to start and grow a manufacturing business.The Plan is being implemented in collabor
34、ation with businesses and other stakeholders.Part 1:Overview of the UKs Manufacturing Sector The UK is a global hub for advanced manufacturing,with the fastest manufacturing productivity growth in the G7 between and in 2021 became the worlds 8th largest manufacturing nation.11 Source:OE
35、CD Productivity Data and ONS Output per job.This builds on the UKs long and proud manufacturing history.In the 18th century,inventions like the steam engine and the spinning jenny revolutionised the UKs economy.In the 20th century,the UK produced the first television and research at the University o
36、f Oxford in the 1970s made the lithium-ion battery possible.This influence has continued to the 21st century with the UK producing the Oxford/AstraZeneca Covid-19 vaccine in 2020.Advanced Manufacturing is critical to UK prosperity We consider advanced manufacturing to be production processes that in
37、tegrate advanced science and technology,including digital and automation,to manufacturing.These processes use R&D,innovation,our extensive knowledge network,and our highly skilled population.This helps UK manufacturers create products that are meeting future technological demands and enable the UK t
38、o lead on the twin transitions of net zero and digitalisation.Manufacturing spreads opportunity right across the country and supports the Governments ambition to level up the whole UK.The majority,at 84%,of manufacturing jobs in the sector lie outside of London and the South East,compared to 69%for
39、the economy as a 10 Organisation for Economic Co-Operation and Development.Productivity and ULC by main economic activity.2023;Office for National Statistics.Output per Worker,UK.2023.11 Make UK.UK Manufacturing:The Facts.2023;United Nations Conference on Trade and Development.Gross Domestic Product
40、:GDP by type of expenditure.2023.809010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Figure 1:Manufacturing Productivity(Output per Job)2015=100Source:OECD Productivity Data and ONS Output per WorkerProductivity Growth (2010-2021)UK(ONS Data)25%Germany 17%Italy 14%USA 12%Japan 9%
41、France 7%Canada 7%7 whole.12 Regions across the UK have similar manufacturing success stories-from Waless sizeable technology sector hosting CS Connected,the worlds first compound semiconductor cluster;to the growing critical minerals sector in Cornwall;Scotlands strong tradition of shipbuilding aro
42、und the River Clyde,and Northern Irelands vibrant and internationally connected aerospace sector.Figure 2:Manufacturing Gross Value Added and Employment,by nation and region(2023 Source:ONS Business Registers and Employment Survey and ONS Regional GVA by Industry.As clean energy technologies develop
43、,we are seeing new manufacturing opportunities across the UK which are bringing back investment to areas that experienced manufacturing closures during the 20th century.This includes a world-leading hydrogen hub in Teesside.Net zero and digital transitions present considerable opportunities for UK m
44、anufacturing and investment,and are vital to ensure the UK can deliver on its ambitions and targets.To deliver net zero,we estimate that additional capital investment averaging 50-60 billion per year is needed through the late-2020s and 2030s across the economy.13 The majority of this investment wil
45、l come from the private sector.Furthermore,growing international ambition on climate means a growing global market opportunity for UK businesses,potentially worth more than 1 trillion for UK firmsbetween 2021 and 2030.14 12 Office for National Statistics.Workforce Jobs by Industry.2023.13 HM Treasur
46、y.Net Zero Strategy:Build Back Greener.2023.14 McKinsey Sustainability.Opportunities for UK businesses in the net-zero transition.2021.0%2%4%6%8%10%12%14%16%18%20%LondonSouth EastScotlandEastEnglandUnited KingdomSouth WestNorth WestNorth EastWest MidlandsWalesNorthern IrelandYorks and HumbsEast Midl
47、andsGross Value AddedEmployment 8 We are entering a major investment cycle and the UK is well-placed to capitalise on this green growth opportunity.Our manufacturers will play a central role,whilst supporting our energy sector through developing local supply chains.The UK has a strong offer with a t
48、rack record of decarbonising faster than any other G7 country,15 a clear plan for reaching net zero,and significant public investment into the green industrial revolution.Additionally,we have strengths in key clean energy sectors from offshore wind,CCUS,and hydrogen to innovative new nuclear technol
49、ogies and key parts of the supply chains for electricity networks.Our industrial base plays an important role in our future economic resilience,helping ensure our economy is able to withstand and proactively tackle the challenges of today and the future.UK manufacturers produce many of the essential
50、 goods,parts,and components needed to sustain and protect citizens in the UK and across the world,from food to vital medicines and medical equipment.A new cohort of critical minerals are also becoming increasingly important as we seek to bolster our energy security and industrial resilience.More bro
51、adly,manufacturing sectors also play a pivotal role in supporting the UK Export Strategys ambition to reach 1 trillion exports annually,16 accounting for 43%of all UK exports,creating economic growth and jobs across the UK.17 That is why the Government announced in the Autumn Statement 4.5 billion o
52、f targeted funding to unlock investment in strategic manufacturing sectors automotive,aerospace,life sciences and clean energy-which are developing cutting edge technology and driving our transition to net zero,and where this support will level up communities across the country with higher-paid jobs
53、,improve the UKs energy security,and help grow the sectors of the future.18 This funding will be available from 2025 for five years,providing industry with longer term certainty.15 Department for Energy Security and Net Zero.Powering Up Britain:Net Zero Growth Plan.2023.16 Department for Business an
54、d Trade.Export Strategy:Made in the UK,Sold to the World.2021.17 Office for National Statistics.Trade in Goods.2023.18 HM Treasury.Autumn Statement 2023.2023.9 The UKs strengths are broad-based and built on our world-class innovation expertise.Our automotive sector is the second largest in Europe in
55、 value added terms;19 accounting for 15.2 billion of UK manufacturing GVA and 38.3 billion of exports in 202220 and has successful hubs in the North East and West Midlands.It is transitioning rapidly to produce more EVs and batteries and there is potential to capitalise on our world-leading position
56、 on connected and automated mobility(CAM)to transform how we move people and goods.Our aerospace sector contributed 9.8 billion GVA,generated around 27 billion of turnover in 2022,and around 18.6 billion of exports of UK production(33.4 billion including re-exports).21 The South West has one of the
57、largest aerospace sectors in the world22 and Airbus and Rolls-Royce produce around 50%of the worlds large civil aircraft wings and engines in addition to some of the highest value aircraft systems.23 Our life sciences sector has invested over 5 billion in R&D in 2020(over 11%of UK total).24 and we p
58、ublished our Life Sciences Vision in 2021.25 The industry exported goods worth 24 billion 19 Eurostat.National Accounts Aggregates by Industry.2023;Office for National Statistics.GDP Output Approach:Low-Level Aggregates.2023.20 Office for National Statistics.GDP Output Approach:Low-Level Aggregates.
59、2023.21 Office for National Statistics.GDP Output Approach:Low-Level Aggregates.2023.22 Office for National Statistics.Business Register and Employment Survey.2023;Eurostat.National Accounts Aggregates by Industry.2023.23 DBT analysis based on Cirium data.24 Office for National Statistics.Business E
60、nterprise Research and Development.2022.25 Office for Life Sciences and others.Life Sciences Vision.2021.4.5 billion announced at Autumn Statement for strategic manufacturing sectors from 2025 for five years Automotive:Over 2 billion is being made available for the automotive sector to support the m
61、anufacturing and development of zero emission vehicles,their batteries and supply chain.Aerospace:975 million is being made available for the aerospace sector support the development of energy efficient and zero-carbon aircraft technology.Life sciences:520 million is being made available for life sc
62、iences to build resilience for future health emergencies and capitalise on the UKs R&D strengths.Green industries:960 million is being made available for a Green Industries Growth Accelerator which will support investments in manufacturing capabilities for the clean energy sectors where the UK can g
63、ain the clearest strengths:Carbon Capture Utilisation and Storage(CCUS),hydrogen,offshore wind,electricity networks,and nuclear.Source:HM Treasury.Autumn Statement 2023.2023.10 in 202126 and employs over 115,000 people in Pharmaceutical and MedTech manufacturing,with 75%of wider life sciences employ
64、ment outside London and the South East.27 Our carbon capture utilisation and storage(CCUS)sector benefits from the storage potential of the UK Continental Shelf,which makes the UK ideally positioned to lead global development in a sector.It is estimated it could add up to 5 billion GVA by 2050 and c
65、apture up to 8 billion of global CCUS turnover,as well as supporting up to 50,000 jobs by the end of the decade.28 Our electricity network sector benefits from the UKs stable regulatory environment and ambitious plans for transforming the grid,alongside the estimated additional 40-60 billon of inves
66、tment required in the onshore transmission network to reach net zero by 2050,29 creates a sizeable market opportunity for the supply chain.Our hydrogen sector,benefits from the UKs natural assets and our technical expertise mean we can be an early mover-both for electrolytic green hydrogen and CCUS-
67、enabled blue hydrogen production.Government analysis suggests the UK hydrogen sector could unlock over 12,000 jobs and up to 11 billion in private investment by 2030 across the UK.30 Our nuclear energy sector has strong capabilities across the nuclear fuel cycle.This extends from fuel production to
68、decommissioning,as well as to the wider supply chain and expertise for building and operating reactors,including specialised equipment manufacturing.The sector is estimated to have a GVA of 102,300 per FTE(Full Time Equivalent)job.31 With the UKs ambition to deploy up to 24GW of nuclear capacity by
69、2050,32 we expect manufacturing opportunities to increase as we ramp up our new build programme alongside delivery of existing decommissioning requirements.Our offshore wind sector is a world leader with the most installed capacity in Europe.33 We have significant strengths in Scotland,the North Eas
70、t,and the East of England.The UK offshore wind manufacturing sector is estimated to have an annual turnover of around 570 million in 2021.34 Manufacturing productivity growth(output per hour)outperformed the rest of the UK economy,at 3.9%a year compared to 1.1%for the whole economy from 1997 to 2022
71、.35 The UK has significant strengths to build upon,right across the country.The UK continues to build a positive environment for manufacturing investment via cross-cutting measures such as full expensing and sector-specific initiatives so that our country is the best place to start,grow and invest i
72、n a manufacturing business.Examples of further sectors the UK has manufacturing strengths in,include:26 Office for Life Sciences.Life Science Competitiveness Indicators(Tables 19,20).2023;HM Revenue and Customs.December 2021 Currency Exchange Rates.2023.27 Office for Life Sciences and others.Life Sc
73、iences Vision.2021.28 Department for Energy Security and Net Zero.CCUS Net Zero investment roadmap:Capturing carbon and a global opportunity.2023.29 Department for Business,Energy and Industrial Strategy.Electricity Networks Modelling.2022.30 Department for Energy Security and Net Zero.Powering Up B
74、ritain.2023.31 Nuclear Industry Association.Delivering Value.2023.32 Prime Ministers Office and others.British Energy Security Strategy.2022.33 HM Government.Offshore Wind Net Zero Investment Roadmap.2023.34 DBT analysis based on Office for National Statistics.Low Carbon and Renewable Energy Economy
75、,UK.35 Office for National Statistics.Output Per Hour Worked,UK.2023.11 Our chemicals sector,which is a key foundational industry.At least 96%of all manufactured goods contain chemical industry content.36 In 2022,it is estimated to have contributed 13.2 billion in GVA to the UK economy.37 Chemicals
76、and their products can be found in almost every end-consumer market,ranging from automotive to healthcare,technology,food,and green energy markets.Our consumer goods sector,which has a long heritage of producing textiles,clothing,leather goods and furniture.In 2022,the sector was estimated to accoun
77、t for 303,000 direct jobs(0.9%of the UK workforce)and to generate 15.6 billion of GVA in purely manufacturing roles.38 The vast majority of consumer goods manufacturing is located outside of London and the South East,and is integral to supply chains ranging from retail,automotive,aerospace,and defen
78、ce,to healthcare,transport,and hospitality.Our defence sector,which is dynamic,sustainable,and globally competitive-the UK has the second largest defence equipment and services market in the world.39 Our food and drink sector,which is the largest manufacturing sector in the UK and delivers an estima
79、ted industry turnover of nearly 128 billion,as well as providing exports valued at over 26 billion.40 The industry is the largest manufacturing sector in the East Midlands and Yorkshire and the Humber by employment and GVA;and has a vital role in supporting regional economic growth.41 In 2022,over 1
80、1,300 new food and drink products were launched in the UK.42 Our machinery sector,which is the fourth largest in Europe behind only Germany,Italy,and the Netherlands in value added terms.43 This includes products from engines and turbines,to highly specialist technical instruments.The sector exporte
81、d 36.4 billion of products in 2022,representing 8.6%of all UK goods exports and 4.4%of total UK goods and service exports.44 Our shipbuilding and maritime sector,which is crucial to keeping international trade moving and maintaining our defence capability.This year,we launched the 500 million Shipbu
82、ilding Credit Guarantee Scheme.45 This scheme will support ship buyers and operators to purchase new vessels and mobile offshore installations or refit,retrofit and repair existing ones at UK shipyards.Our space sector,where the UK has expertise in the manufacture of spacecraft,satellites,and comple
83、x payloads.The sector employs 48,800 employees across the UK,generating more than 36 Chemical Industries Association.Accelerating Britains Net Zero Economy.2020.37 Office for National Statistics.GDP Output Approach:Low-Level Aggregates.2023.38 DBT analysis based on Office for National Statistics.GDP
84、 Output Approach:Low-Level Aggregates.2023;Office for National Statistics Annual Business Survey.2023;Office for National Statistics.Business Registers and Employment Survey.2022.39 Ministry of Defence.UK Defence in Numbers:2022.2023.40 Office for National Statistics.GDP Output Approach:Low-Level Ag
85、gregate.2023.41 Office for National Statistics.Regional GVA by Industry.2023;Office for National Statistics.Business Registers and Employment Survey.2022.42 Mintel.Global New Products Database(GNPD).2023.43 Eurostat.National Accounts Aggregates by Industry.2023;Office for National Statistics.GDP Out
86、put Approach:Low-Level Aggregates.2023.44 Office for National Statistics.Trade in Goods.2023.45 Department for Business and Trade.Shipbuilding Credit Guarantee Scheme.2023.12 17.5 billion in income,with satellite services supporting over 370 billion of UK GDP.46 The Government is developing a Space
87、Sector Plan,due to be published next year.The plan will seek to improve the way Government and the commercial space industry work together,and set out a range of interventions to boost growth and resilience.Our steel and aluminium sectors,which provide important inputs for the manufacturing sector,i
88、ncluding for machinery and equipment,renewable energy generation,and more.The two sectors supported over 37,000 direct jobs in 2022.47 Our sector strengths are supported by a world class network of universities,research institutions,and Catapults.Together,these institutions support innovations in ma
89、nufacturing,from the research and development stage to the scale up and commercialisation of new technologies.Institutions are spread across the country,from the National Composites Centre in Bristol,to the Henry Royce Institute in Manchester,and to the Advanced Manufacturing Innovation Centre at Qu
90、eens University in Belfast.Securing the Future of UK Advanced Manufacturing Advanced manufacturing is being radically transformed by the twin transitions of net zero and digitalisation.These changes will be at the heart of unlocking a reduction in global emissions and improving our manufacturing pro
91、ductivity and efficiency.Our advanced manufacturing strengths-supported by a strong business environment,a world class network of universities and innovation institutions,and a highly skilled workforce have led to a number of recent successes.These include the following recent investments:Tata Group
92、 have announced the construction of a new gigafactory that will produce 40GWh of batteries per year and create 4,000 new jobs,as part of the electrification of the Jaguar Land Rover brand.48 Nissan is leading up to 2 billion of new investment in Sunderland with two new EV models.This represents anot
93、her major vote of confidence in the UK,building on the 1 billion investment announced in 2021.49 BMW have announced 600 million to produce the next all-electric Mini in Cowley,Oxfordshire from 2026.50 Boeing have partnered with others to make the first investment in South Yorkshires Advanced Manufac
94、turing Investment Zone,worth over 80 million.51 46 UK Space Agency.The Size and Health of the UK Space Industry 2022.2023.47 Office for National Statistics.Business Registers and Employment Survey.2022.48 Department for Business and Trade.Tata Group to Invest Over 4 billion in UK gigafactory creatin
95、g thousands of jobs.2023.49 Prime Ministers Office and others.Nissan triples investment in electric vehicle production in the UK.2023.50 BMW Group.MINI Plant Oxford goes Electric:600m investment for all-electric MINI production in the UK.2023.51 HM Treasury.South Yorkshire named as first UK Investme
96、nt Zone.2023.13 Air India have agreed to purchase around 250 new aircraft from Airbus,supporting the existing high skilled aerospace jobs in Wales and across the UK.52 Tata Steel is expected to invest 1.25 billion,including a UK Government grant worth up to 500 million in a new electric arc furnace
97、to support decarbonisation of steel production at Port Talbot,which is currently the UKs largest single carbon emitter.53 Through our Advanced Manufacturing Plan,we are building on these strengths and our existing interventions to attract further investments in clean and digital manufacturing techno
98、logies.If the UK can continue to build on its strengths and expertise,and continues to lead the transitions in net zero and digitalisation,the benefits are substantial.52 Department for Business and Trade.Prime Minister welcomes Air India,Airbus and Rolls-Royce deal.2023.53 Department for Business a
99、nd Trade.Welsh steels future secured as UK Government and Tata Steel announce Port Talbot green transition proposal.2023.14 Part 2:The Advanced Manufacturing Plan Our ambition is to ensure the UK is the best place in the world to start and grow a manufacturing business,building on our existing stren
100、gths and successes.Through our Advanced Manufacturing Plan,we are taking targeted and strategic action aimed at ensuring our business environment and international competitiveness remain strong.We are meeting our ambitions through focusing on the following three priorities:a)Investing in the future
101、of manufacturing by building on our existing programmes and partnerships with businesses to support market-led investment in innovation and research and development.b)Cooperating internationally and building supply chain resilience to boost economic security and ensure our sectors have access to the
102、 goods that drive prosperity.c)Reducing costs and removing barriers to boost competitiveness and ensure the UK retains its attractiveness to international investors in the long term.A:Investing in the Future of Manufacturing We will continue to invest in the future of manufacturing by extending our
103、successful business programmes,including the support we provide to the automotive and aerospace sectors to 2030.We are also offering to extend and expand Made Smarter,our industrial digitalisation programme,to more regions of England in 2025-26 before working with the devolved administrations to exp
104、lore expanding the programme further from 2026-27.Ensuring the continuity in Government support provides longer-term certainty to businesses at this crucial stage of the business investment cycle.It ensures they can continue to take advantage of the opportunities provided by the transition to net ze
105、ro and the benefits offered by increased digitalisation.The focus of the Advanced Manufacturing Plan is on leveraging private sector investment so the UK remains a globally competitive investment destination.This will ensure manufacturers can continue to innovate their processes and bring world-lead
106、ing products to market.Growing emerging,advanced manufacturing sectors:Zero Emission Vehicles(ZEV)Over the last decade,a drive to develop new vehicle propulsion technologies has transformed the automotive sector.During this period,Government and industry have jointly invested more than 1.4 billion i
107、n R&D funding,laying the foundations for new manufacturing supply chains to emerge.54 This partnership has been delivered via the Advanced Propulsion Centre(APC)and Innovate UK as part of a ten-year strategy for the sector launched in 2013.In 2020,as zero emission vehicles moved to mass commercialis
108、ation,the Government announced the Automotive Transformation Fund(ATF)to accelerate the UK automotive sectors electrification.54 Department for Business and Trade.89 million of funding to develop cutting edge new electric vehicle technology.2023.15 Thanks to ATF support,52 GWh capacity has been inst
109、alled or is planned in the UK so far,and we are on our way to reach the 2030 capacity requirements expected by the sector.The UK also remains a globally competitive investment destination and the ATF has secured several strategic supply chain investments.As well as the earlier referenced Tata gigafa
110、ctory and the electric Mini investment decisions,other strategic investments include:a 2billion investment deal with Nissan to produce two new electric vehicle models in Sunderland;55 380 million by Ford in the production of electric power units at Halewood;56 Johnson Mattheys 60 million investment
111、in Hertfordshire to develop hydrogen technologies;57 and Stellantis 100 million investment that has seen the Vauxhall plant in Ellesmere Port transition to all EV production.58 However,the global context has changed,and the pace of this transition continues to accelerate as decarbonisation policies
112、and technological advancements drive global demand.Competition for global investment is intense and the Government remains focused on the long-term success of the sector through targeted and proportionate intervention,leveraging the strengths of our longstanding innovation ecosystem.This is why,as p
113、art of the 4.5 billion funding for strategic manufacturing sectors announced at Autumn Statement,we will make available 2 billion of new capital and R&D funding for the automotive sector via Auto2030,an ambitious programme building on the ATF and the APC R&D programme.59 This long-term commitment pr
114、ovides certainty to markets and will boost investment in UK manufacturing of zero emission vehicles,batteries and the supply chain.Programmes will include:R&D grants to support the design and development of zero emission vehicle prototypes,systems,and supply chain inputs,boosting the UKs long-term c
115、ompetitiveness.Scale-up grants to fast-track the development of near commercial pilots for zero emission vehicle technologies,de-risking future capital investment in their large-scale industrialisation,and strengthening the UK supply chain.Capital grants to unlock strategic investments in an interna
116、tionally competitive electric vehicle and battery supply chain,enabling automotive transformation and attracting future investment in the UK manufacturing of zero emission vehicles and batteries.As part of the governments long-term commitment to automotive and in line with the headline recommendatio
117、ns of the Harrington Review into the Governments approach to attracting foreign direct investment,we will review the process for these automotive capital grants,with a view to simplifying and improving them to be more business-friendly.This comprehensive package of interventions builds on the streng
118、ths of our innovation ecosystem to attract strategic investments,secure thousands of jobs across the UK,establish supply chains,and deliver significant global emissions reductions.It will also anchor innovation investment,help achieve the required battery 55 Prime Ministers Office and others.Nissan
119、triples investment in electric vehicle production in the UK.2023.56 Ford.Ford to Increase Investment at Halewood to Scale Up Electric Vehicle Portfolio.2022.57 Department for Business and Trade.Business Secretary visits Aston Martin after announcing 9 million to drive innovation in auto tech industr
120、y.2023.58 Department for Business and Trade.Business Secretary visits Aston Martin after announcing 9 million to drive innovation in auto tech industry.2023.59 HM Treasury.Autumn Statement 2023.2023.16 manufacturing capacity to meet future demand and increase the UKs resilience in the face of global
121、 supply shocks.The Government also recognises the importance of ensuring public money mobilises private investment,particularly across green industries and advanced manufacturing sectors.Blended finance approaches offer an important opportunity to do this,and the government is committed to exploring
122、 and expanding the use of these approaches ahead of the next spending review.The government recently announced the Net Zero Blended Finance Project(NZBFP),which will seek to build the capacity and expertise of government to explore and utilise innovative approaches to funding design.Working with Pub
123、lic Finance Institutions,including the UK Infrastructure Bank(UKIB)and UK Export Finance(UKEF),the Green Finance Institute,and engaging businesses and investors,we will seek to better understand these approaches and help ensure public investment crowds in private finance.Connected and Automated Mobi
124、lity The future of transport is automated and connected.The UKs Centre for Connected and Autonomous Vehicles(CCAV)is working to create an early commercial market and secure first mover advantage in the deployment of self-driving vehicles and services.Broader than just passenger cars and robo-taxis,C
125、onnected and Automated Mobility(CAM)includes logistics,mass transit,mining,agriculture,and defence,with economic benefits worth up to 66 billion per year by 2040.60 Appropriate regulation and legislation,with public safety at its heart,is crucial for CAM.The Department for Transport is setting out C
126、AM legislation through the Automated Vehicles Bill,announced in the Kings Speech earlier this month.CAM is expected to create safer,fairer,more accessible,and cleaner transport for passengers and goods.CAM also offers significant economic value through job creation,trade opportunities,and productivi
127、ty and efficiency gains across the country.This builds on around 600 million of joint investment with industry in over 100 projects across the UK since 2015.61 This has led to significant investment across the UK,including:Automated vehicle software company,Oxa(formerly Oxbotica),announced 115 milli
128、on of investment this year,including from Ocado,ZF,Wenco and Google.62 Coventry-based self-driving vehicle developer,Aurrigo,floated on the AIM(formerly the Alternative Investment Market),with a market capitalisation of 20 million in September 2022;63 which now has a valuation of 68 million.64 60 Th
129、e Society of Motor Manufacturers and Traders.Connected and Automated Mobility:The UK Economic and Market Opportunities.2023.61 The Society of Motor Manufacturers and Traders and others.Connected and Automated Mobility:The UK Economic and Market Opportunities.2023.62 Oxa.Oxbotica raises US$140 millio
130、n Series C Investment to deploy its operating system for Universal Autonomy around the world.2023.63 Aurrigo.Aurrigo International PLC.2023.64 London Stock Exchange.Case Study:Aurrigo.2023.17 CAVForth,the worlds most advanced automated bus trial,has carried thousands of passengers across the Forth R
131、oad Bridge to Edinburgh,and is led by Fusion Processing with Alexander Dennis,Stagecoach,and Transport Scotland.65 Over the course of 2023,CCAV has announced around 60 million of grant funding into 30 projects,involving over 50 organisations to accelerate UK self-driving technologies and services to
132、 market,and for export around the world.66 This includes a 42 million grant for seven CAM Deployments projects.67 We want the UK to be the European leader in the transformation of how we move people and goods around the country.Through our CAM2030 programme,we are extending our current R&D support p
133、rogramme to 2030 with up to 150 million funding to support operational deployments of self-driving services.This will include on-and off-road logistics and high potential mass transit services,and support key components in the growing,global supply chain,especially in areas where sovereign capabilit
134、ies(such as in cybersecurity and safety)are strategically desirable.By seizing the opportunities that CAM provides,the UK could generate additional economic benefits of up to 66 billion a year and create 342,000 new jobs by 2040.68 We are also considering the need for a Centre of Excellence for UK C
135、onnected and Automated Mobility to work with departments and organisations.The Centre would focus on coordination challenges and strengthen the capabilities,skills and public engagement required to support the growing sector and meaningful regional engagement.The Centre will work closely with Govern
136、ment to support SME access to finance,international engagement and exports.65 Transport Scotland.Project CAVForth.2023.66 HM Government.Connected&Automated Mobility 2025.2022.67 Department for Business,Energy and Industrial Strategy.UK Government backing helps launch world first self-driving bus.202
137、3.68 The Society of Motor Manufacturers and Traders.Connected and Automated Mobility:The UK Economic and Market Opportunities.2023.Aurrigo Self Driving Shuttles and Airport Dollies Aurrigo,based on the site of the original Humber factory in Coventry,started developing self-driving software and vehic
138、les in 2015 through Government funded programs.The company focuses on new vehicle types for the first and last mile transport of people and goods.Partnerships with Singapores Changi Airport,global logistics company UPS,and IAG(which owns British Airways)have been announced in recent years for its Au
139、toDolly airside vehicle platform.Aurrigos most recent Government funded project is to adapt their airside dolly to UPS requirements for cargo operations at the East Midlands airport.In September 2022,Aurrigo floated on the LSE Alternative Investments Market(AIM),achieving a market capitalisation of
140、20 million despite challenging global economic conditions.By October 2023,that market cap had risen to 68 million and Aurrigo has more than doubled its staff,from 48 to 101,and has a 65,000 sq ft joint R&D and manufacturing site.Source:Aurrigo.Aurrigo International PLC.2023;London Stock Exchange.Cas
141、e Study:Aurrigo.2023.18 Aerospace In 2022,we set out our support for innovation in more sustainable technologies,stronger manufacturing value chains to industrialise R&D in the UK,and the skilled workforce required to manufacture aircraft for the next era of flight-Destination:Net Zero,the Aerospace
142、 Growth Partnerships strategy for the UK sector.69 This was underpinned by 685 million in Government funding for the Aerospace Technology Institute(ATI)to 2025-an increase of 50%on the previous 3-year period.70 This builds on the work of the ATI programme,established in 2013-a joint programme with i
143、ndustry that invested 3.58 billion in world leading UK aerospace R&D across 417 projects involving 438 companies and organisations.71 We are committed to supporting innovation that will lead to the next generation of zero-carbon and ultra-low emission aircraft technology.This includes building on ou
144、r world-leading position in the manufacture of aircraft,particularly for engines,wings,and advanced systems,as well as supporting the supply chain and innovation ecosystem that makes it possible.We remain a global hub for aerospace investment and production.This year,as part of the 4.5 billion fundi
145、ng for strategic manufacturing sectors announced at Autumn Statement,we have re-affirmed our long-term commitment to these aims with 975 million being made available for the aerospace sector to 2030.72 This will continue to support the development of energy efficient and zero-carbon aircraft technol
146、ogy.SMEs will be supported through the launch of a new R&D support scheme for small businesses,with up to 10 million available each year through the ATI Programme.This funding complements the governments commitment at Spending Review 2021 to guarantee funding for the ATI to 2031.73 It will be matche
147、d by business and is a vote of confidence in UK industry and will enable us to strengthen the UKs position in the global aerospace market,creating high value jobs around the UK.69 Aerospace Growth Partnership.Destination Net Zero.2023.70 Department for Business,Energy and Industrial Strategy and oth
148、ers.Green aerospace tech to receive record Government funding.2022.71 Aerospace Technology Institute.Transforming Aerospace Through Technology and Innovation.2023.72 HM Treasury.Autumn Statement 2023.2023.73 HM Treasury.Autumn Budget and Spending Review 2021.2021.19 Life Sciences The UK has one of t
149、he strongest life sciences sectors globally and manufacturing is a key driver of this success,making a huge contribution to the health and wealth of the nation.The sector is critical to achieving our strategic national goals and addressing global challenges.It is also vital to the UKs economic growt
150、h,providing thousands of high-wage and high-skill jobs,75%of which are located outside of Englands South-East,spreading opportunity across the UK.74 The UK is a prime location to research,develop and manufacture pharmaceutical and med-tech products,particularly the cost-effective manufacture of comp
151、lex medicines.This is supported by the UKs powerful research landscape,high-quality science base and network of manufacturing innovation centres.This capability was demonstrated during the COVID-19 pandemic through our world-leading vaccination programme.The Life Sciences Vision75 published in 2021
152、describes our ambition to make the UK anoutstanding business environmentthat can support company growth,innovation,and investment.76 It also commits us to secure and scale up the UKs life sciences manufacturing capabilities to ensure a robust response to potential future health emergencies.Governmen
153、t works 74 Office for Life Sciences and others.Life Sciences Vision.2021.75 Office for Life Sciences and others.Life Sciences Vision.2021.76 Office for Life Sciences and others.Life Sciences Vision.2021.ATI Funding for Advanced Manufacturing Innovation Through the ATI,the UK Government funds groundb
154、reaking aerospace R&D.This keeps the UK at the forefront of cutting-edge,sustainable aerospace technology development,with projects also driving innovation across manufacturing sectors.Five projects with a total project value of 55.4m have recently been awarded funding:Rolls-Royce-led Safety Critica
155、l Harsh Environment Micro-processing Evolution(SCHEME)-41.7m total project value.This project will develop the next generation of safety critical microprocessors for use in harsh environments for not only Civil and Defence Aerospace applications but additionally other sectors.Moog Controls Ltd-led F
156、uture Engine Technology for the Control of Hydrogen(FETCH)-5.5m total project value.This project will develop and demonstrate a fuel control system for hydrogen gas turbine engines.ITP Aero Ltd-led Laser Automation and Design Development for future Engine Requirements(LADDER)-2.6m total project valu
157、e.This project will develop and implement an innovative laser beam welding solution to join complex sheet-metal components.Adaptix Limited led Fast-acquisition,robot-mounted,3D X-ray inspection,with longitudinal failure-analysis for Digital Twins-2.1m total project value.This project aims to scale-u
158、p capability to image large aerospace parts(such as wings/doors/skins)to check for failures in composite material.20 with industry through the Medicines Manufacturing Industry Partnership to sustain the UKs leading position in medicines manufacturing.To ensure the UK remains one of the worlds most a
159、ttractive locations for life sciences manufacturing investments,as part of the 4.5 billion funding for strategic manufacturing sectors at Autumn Statement we have made available 520 million funding for life sciences manufacturing over five years(2025-30).77 This funding will build resilience for fut
160、ure health emergencies and capitalise on the UKs world-leading research and development capabilities.Further details on how this new funding will be deployed and how companies can apply will be announced shortly.This fund will build upon the success of our three recent life sciences capital incentiv
161、e schemes,which have had a total 118 million of funding committed.To date these have supported investments at eleven manufacturing sites across the UK so far,delivering 416 million public/private investment,while creating and securing over 1,400 jobs.At Autumn Statement,the Chancellor announced furt
162、her support for life sciences manufacturing,including investing 10 million,alongside 10 million from Scottish Enterprise,in a Centre of Excellence in Oligonucleotide Manufacturing Innovation in Renfrewshire,Scotland.78 This partnership of government,academia and industry will tackle global challenge
163、s in oligonucleotide therapeutics and establish the UK as a globally recognised location for oligonucleotide manufacturing innovation.As with other manufacturing sectors,the life sciences sector continues to innovate in areas such as adopting digitisation and automation in production;developing gree
164、ner supply chains,manufacturing processes,and more sustainable products;and exploring near-to-patient manufacturing or remanufacturing.Alongside a new voluntary medicines pricing agreement,the pharmaceutical sector will invest in capabilities associated with delivering sustainable pharmaceutical man
165、ufacturing in line with global commitments to deliver net zero.Green Industries Building on the considerable support that the Government has already announced for net zero and green industry sectors,from the Net Zero Strategy,79 British Energy Security Strategy80 and Powering Up Britain,81 we have a
166、nnounced the 960 million Green Industries Growth Accelerator.This is funding focused on expanding manufacturing capacity and removing supply chain bottlenecks in key green industries such as CCUS,offshore wind and nuclear.The funding will be designed to attract private investment,leveraging the 960
167、million available to deliver larger investments across the five sub-sectors.It will form a key part of broader Government support for decarbonising the energy system and reaching net zero.The UK has either strong advantages in these sectors already or can build them with targeted support.They will a
168、ll be vital for our energy security and the transition to net zero across the economy.77 HM Treasury.Autumn Statement 2023.2023.78 HM Treasury.Autumn Statement 2023.2023.79 Department for Energy Security and Net Zero.Net Zero Strategy:Build Back Greener.2022.80 Prime Ministers Office.British Energy
169、Security Strategy.2022.81 Department for Energy Security and Net Zero.Powering Up Britain.2023.21 Government committed 30 billion of domestic investment for the green industrial revolution at Spending Review 2021,82 including 4.2 billion on net zero research and innovation over the period 2022-2025.
170、83 Since then Government has announced a further 6 billion for energy efficiency for 2025-2884 and up to 20 billion for CCUS.85 The Accelerator is building on the action we have already taken to support the development and growth of resilient clean energy supply chains,including for:Offshore wind,wh
171、ere we are consulting on a major reform to our flagship renewable energy support scheme,Contracts for Difference,which has already contributed to the UK attracting around 120 billion of new investment into renewables since 2010.86 Through this consultation we are testing whether offshore wind and fl
172、oating offshore wind projects could get more revenue support for making investments in the sustainability of their supply chains.Our Floating Offshore Wind Manufacturing Investment Scheme is also providing up to 160 million to kick start investment in port infrastructure projects,acting as an import
173、ant base for offshore wind manufacturing ahead of the Accelerator.87 CCUS,where we have committed up to 20 billion of funding for early deployment and selected four clusters to put us on track to store 20-30 million tonnes of CO2 by 2030.88 Industrial CCUS clusters can be the starting point for a ne
174、w carbon capture industry with a sizeable export potential and emitters will be able capitalise on new low carbon product markets.Later this year we will publish a vision for the sector that will set out how we will meet this ambition and provide investors with confidence.Nuclear,where the developme
175、nt of new and emerging technologies such as Small Modular Reactors(SMRs)and Advanced Modular Reactors(AMRs)will be crucial to support our ambition to deploy up to 24GW of nuclear capacity by 2050.89 This year we launched Great British Nuclear,an arms-length body that is responsible for driving the d
176、elivery of new nuclear projects,established the Nuclear Skills Taskforce to turbocharge action on skills,and we have up to 385 million through the Advanced Nuclear Fund to support the development of SMRs and AMRs.90 The Accelerator also complements support offered by public finance institutions such
177、 as the 22 billion UKIB,91 the British Business Bank(BBB),UK Export Finance(UKEF)and Innovate UK.Alongside other Government levers,these institutions drive business value,enable growth and scale technologies across all sectors,regions,and nations of the UK,playing a key role to unlock the investment
178、 needed to develop green industries.Further detail on the scope and availability of funding will follow,including on market engagement with industry ahead of competition launches.82 HM Treasury.Autumn Budget and Spending Review 2021.2021.83 House of Commons Committee of Public Accounts.Support for I
179、nnovation to deliver net zero.2023.84 Department for Business,Energy and Industrial Strategy.Government joins with households to help millions reduce their energy bills.2022.85 HM Treasury.Spring Budget 2023.2023.86 DBT analysis based on BloombergNEF.Energy Transition Investment Trends,2023.2023.87
180、Department for Energy Security and Net Zero.Floating Offshore Wind Manufacturing Investment Scheme.2023.88 HM Treasury.Spring Budget 2023.2023.89 Prime Ministers Office.British Energy Security Strategy.2022.90 Department for Energy Security and Net Zero.Advanced Nuclear Technologies.2023.91 UK Infra
181、structure Bank.UKIB Strategic Plan.2022.22 Hydrogen is expected to represent a crucial part of the UKs future net zero energy system and is critical to supporting the UKs energy security.The importance and opportunities of hydrogen have been identified in the Powering up Britain paper92 and in the U
182、K Hydrogen Champions recommendations to Government.93 The Governments Hydrogen Strategy sets out ambitions to reach up to 10GW of low carbon hydrogen production capacity by 2030,subject to affordability and value for money,with at least half coming from electrolytic or green hydrogen.94 There are ov
183、er 200 companies working on hydrogen and fuel cell technologies in the UK,95 and we consistently feature in the top 10 countries globally for hydrogen technology patent rates.96 A Government commissioned review of the UK supply chain identified significant opportunities for British manufacturers to
184、2030,97 including in electrolysis package manufacture,compressors,electrical equipment,and materials for electrolytic hydrogen.Later this year we will publish a production roadmap setting out our vision for low carbon hydrogen production to 2035.Our hydrogen ambitions will drive investment into the
185、UK and help ensure fair opportunities for UK companies in the supply chain and our skills base,as well as wider economic benefits to all regions of the country.Low carbon hydrogen can be used in propulsion technologies,where battery systems are unlikely to deliver the performances required by indust
186、ry.We want to maximise high value hydrogen propulsion system manufacture in the UK and build on our competitive advantage in this technology.Government programmes already support the development and deployment of hydrogen solutions across transport.This includes support for investments in hydrogen p
187、ropulsion systems through capital and R&D programmes delivered via the Advanced Propulsion Centre,the Automotive Transformation Fund,the Aerospace Technology Institute,and Innovate UK.We will build on these programmes,in partnership with industry,to explore attracting further investment across road,
188、maritime,aviation,rail,and non-road mobile machineries.To further support our ambitions,we are launching an industry taskforce,which will recommend how Government could maximise investment opportunities for UK manufacturing of hydrogen propulsion systems.Delivered in partnership with the Hydrogen In
189、novation Initiative and Innovate UK,and reporting into the Hydrogen Delivery Council,this taskforce will publish recommendations in Spring 2024,considering(a)our manufacturing strengths,(b)the potential of hydrogen propulsion systems across applications and(c)potential technology developments to 205
190、0.92 Department for Energy Security and Net Zero.Powering Up Britain.2023.93 Department for Energy Security and Net Zero.Accelerating the Growth of the Hydrogen Sector:UK Hydrogen Champion Recommendations.2023.94 Department for Energy Security and Net Zero.Hydrogen Strategy Update to the Market:Augu
191、st 2023.2023.95Department for Energy Security and Net Zero.Hydrogen Net Zero Investment Roadmap.2023.96 International Energy Agency.Hydrogen Patents for a Clean Energy Future.2023.97 Department for Energy Security and Net Zero.Supply Chains to Support a UK Hydrogen Economy.2022.23 We are also explor
192、ing how a UK Hydrogen Capability Network98 could provide an anchor for UK aerospace to adopt liquid hydrogen and accelerate skills development and research.Cross-Cutting Manufacturing Support:Made Smarter Adoption Programme Digital connectivity is unlocking new and previously unimaginable ways of wo
193、rking.In manufacturing,industrial digital technology(IDT)99 can radically transform every sector.UK manufacturers are already using IDT to drive up their productivity,increase their turnover,and create new high-skilled,well-paid and stimulating jobs.New digital technologies and production processes
194、are allowing them to create more innovative products,tap into new markets globally,reduce faults,and lower costs.This potential is increased when investment in sensors and software is combined with the application of machine learning and Artificial Intelligence.UK manufacturers will be able to do mo
195、re with less and create greener products that reduce the sectors dependency on energy inputs and the impact on the environment.Moreover,because IDT can be deployed quickly it will play a crucial early role in the UKs path to net zero.For example,IDT is also opening new possibilities for green and ci
196、rcular business models that will flourish within the UKs business environment.In partnership with business,we have been supporting the take up of IDTs through the Made Smarter Programme.Through Made Smarter a firm can learn how to capitalise on new digital technologies,reduce carbon emissions,and dr
197、ive-up productivity.The programme offers manufacturing SMEs access to expert advice,digital road mapping,match-funded grants and leadership training.Since the programme started in 2018,over 3,100 manufacturing SMEs have registered on the adoption programme and 5.5%of manufacturing SMEs in the region
198、s have been supported.100 Over 500 IDT projects have been funded(leveraging in over 20 million of private investment by manufacturing SMEs)and over 900 businesses have been provided with digital roadmaps to set out the steps needed to integrate digital technologies in their operations and processes.
199、101 In addition,over 200 SME businesses leaders have undertaken leadership and management training to support the successful adoption of new technologies.102 To support more manufacturing SMEs to use IDT,we will be expanding the Made Smarter Adoption programme,committing up to 16 million in 2025-26
200、to offer the scheme to all regions in England before working with the devolved administrations to explore expanding the programme further from 2026-27.Expansion will also involve re-introducing digital internships-placements for students from relevant courses such as industrial digitalisation and in
201、telligent systems into SME firms.98 Aerospace Technology Institute.Hydrogen Capability Network.2023.99 IDTs include AI;robotics and autonomous systems;additive manufacturing;industrial internet of things;virtual reality and data analytics.100 Based on DBT analysis of Made Smarter monitoring data and
202、 North West Pilot Evaluation Report.2023.101 Based on DBT analysis of Made Smarter monitoring data and North West Pilot Evaluation Report.2023.102 Based on DBT analysis of Made Smarter monitoring data and North West Pilot Evaluation Report.2023.24 Alongside the Made Smarter Programme,the Government
203、is establishing an Industry Innovation Accelerator,bringing together leading digital companies and manufacturing business leaders.It will be co-chaired by the Minister for Industry and Economic Security and the Managing Director for Digital Industries at Siemens PLC.The Accelerator will focus on tra
204、nsformative digital solutions for the manufacturing sector,accelerating their adoption and diffusion across all parts of manufacturing.Manufacturing Observatory Manufacturing supply chains have increased in complexity and the demand for more granular data is increasing as supply chains experience di
205、sruption and vulnerabilities.There are increased opportunities to improve our understanding of supply chains and the advanced manufacturing sector from data and other digital tools,to complement official statistics and our ongoing monitoring and evaluation work.We will explore,including piloting,a M
206、anufacturing Observatory,working with the Institute for Manufacturing and stakeholders.This would aim to build our capability with industry and researchers on manufacturing evidence and analysis.Better evidence and analysis through the Manufacturing Observatory will ensure better informed business d
207、ecisions and policy making.High Value Manufacturing Catapult Our Catapult Network works with manufacturers,technology firms,and academia to commercialise great ideas.They have helped cement the UKs position as a science and technology superpower.Made Smarter Adoption:BEP Surface Technologies,Radclif
208、fe,North West Chill roll manufacturer,BEP Surface Technologies,needed to redesign its factory to expand capacity and match European competitors ability to undertake larger scale electroplating work.The firm worked with Made Smarters expert advisers and completed a digital transformation workshop.Thi
209、s identified how the firm could harness matched grants,and a digital intern from the programme,to employ visualisation and virtual reality technology to enable expansion.BEP needed to optimise space and production line layout to accommodate larger electroplating tanks.The firm worked with Made Smart
210、er to begin developing a digital twin of the existing production facility to test the viability of the expansion and start training staff in the virtual world.Expanding to a second site enabled an increase in turnover from 4 million to 6.5 million within four years,and the use of digital technology
211、has helped to reduce the risk associated with their growth strategy whilst improving health and safety,as well as process efficiency.Source:Andrew McClusky,Managing Director at BEP Technologies.25 The High Value Manufacturing Catapult(HMVC)is the largest advanced manufacturing research capability in
212、 Europe-across 18 sites in England,Scotland,and Wales103-helping firms transform their performance and bring new products,processes,and services to market.The HMVC working with researchers and business,has received around 650 million in funding between 2018 and 2023.104 Over the last decade,HVMC has
213、 worked with nearly 22,000 companies105 over half of which are SMEs and completed over 9,200 commercial and collaborative R&D projects.106 In the Autumn Statement 2022,funding for the Catapult Network was increased by 35%over the next five years,to 1.6 billion in total,signalling a long-term commitm
214、ent by Government to the sector.107 Horizon Europe and Copernicus On 7 September 2023,the Prime Minister announced a new UK-EU agreement on the UKs association to Horizon Europe and Copernicus(Earth Observation Programme).108 This was a significant moment for scientific and space collaboration betwe
215、en the EU and the UK.Horizon association will not only increase cooperation with the EU,but also Norway,New Zealand,and Israel,who are part of the programme.Horizon Europe provides funding for research and innovation and creates international collaboration opportunities.UK researchers and businesses
216、,including manufacturers,can now participate in the worlds largest programme of research cooperation,which is supported by over 80 billion of funding during the programmes lifetime.109 Horizon particularly supports the UKs advanced manufacturing sector via“Cluster 4”,where there are 18 calls current
217、ly open,with an approximate budget of 500 million.110 These calls cover topics such as“Twin,Green and Digital Transition”and“Resilient Value Chains”.Net Zero Innovation Portfolio The UKs 1 billion Net Zero Innovation Portfolio(NZIP)111 aims to accelerate the commercialisation of low carbon technolog
218、ies,systems and business models in power,buildings,greenhouse gas removals and industry.This forms part of the UK Governments wider 4.2 billion portfolio of net zero research and innovation programmes for 2022-25.112 This includes investment in key sectors with UK manufacturing opportunities,includi
219、ng hydrogen,nuclear,renewables,CCUS,industrial decarbonisation and automotive and aerospace.103 The Catapult Network.Our Catapult Centres.2023.104 Based on HM Government analysis.105 Catapult.A Decade of Innovation-driven Transformation:Annual Review 2020/21.2021.106 Bennett K.High Value Manufacturi
220、ng Catapult Outlines its 2030 Vision.2021.107 Department for Science,Innovation and Technology.2023 Update to the Catapult Network Review.2023.108 Prime Ministers Office.Joint Statement by the European Commission and the UK Government on the UKs Association to Horizon Europe and Copernicus.2023.109
221、European Commission.Horizon Europe:Budget.2023.110 European Commission.Cluster 4:Digital,Industry and Space.2023.111 Department for Energy Security and Net Zero.Net Zero Innovation Portfolio and the Advanced Nuclear Fund:Progress Report.2023.112 Department for Energy Security and Net Zero.Powering U
222、p Britain:Net Zero Growth Plan.2023.26 Long-term Investment for Technology and Science To support pension scheme investment into the UKs most innovative companies,the Government will commit 250 million to two successful bidders under the Long-term Investment for Technology and Science(LIFTS)initiati
223、ve,subject to final contract.This will create new investment vehicles tailored to the needs of pension funds,generating over a billion pounds of investment from pension funds and other sources into UK science and technology companies.Bidders are required to demonstrate that at least 50%of the total
224、size of the investment vehicle be invested in UK based science and technology companies.This can include advanced manufacturing,where 50%nearly of business R&D is currently invested.113 B:Cooperating Internationally and Building Supply Chain Resilience Increased global challenges,geopolitical tensio
225、ns,and a more fragmented global economy all present risks to the UKs manufacturing sector including the trend from free international trade towards more managed trade.The UKs resilience is increased through an open global economy and a free trading system that increases fair competition.This must be
226、 coupled with going further in mitigating the risks of economic coercion and market distorting practices in our high value manufacturing sectors.Our approach in the Advanced Manufacturing Plan aligns with the Integrated Review Refresh 2023,114 which sets out how we are stepping up work to protect ou
227、r economic security while preserving the UKs strengths as a great place to invest.We will continue to advance fair,free and open international trade in manufacturing goods and services for the UK and globally,as well as support UK manufacturers in taking advantage of the international opportunities
228、it provides.We will deepen our collaboration with international partners to increase resilience for our supply chains critical to manufacturing,whilst boosting our UK capabilities and strengths.We will also continue to work with international partners to tackle forced labour and ensure business resp
229、ect for human rights.International Cooperation:Free Trade Agreements and Mutual Recognition Agreements Our Free Trade Agreements(FTAs)support the development of increased opportunities for manufacturing by reducing tariff barriers,simplifying customs processes,enabling the mobility of skilled worker
230、s;providing greater stability,certainty and security for investments;and diversifying the supplies of imports that our businesses depend on.As well as pursuing the most ambitious programme of trade negotiations in the world,we are also working to ensure that our FTAs remain future proofed to technol
231、ogy development-focused to developments in technology.For instance,our recent agreement with Australia included the first ever innovation chapter,which provides a mechanism for the UK and Australia to collaborate on 113 Office for National Statistics.Business Enterprise Research and Development.2022
232、 114 Cabinet Office.Integrated Review Refresh.2023.27 the impact of innovation in trade,including new developments critical to advanced manufacturing such as Artificial Intelligence or 3D printing.115 Following EU Exit,the UK has rolled over stand-alone Mutual Recognition Agreements(MRAs)with Austra
233、lia,New Zealand,Switzerland,and the USA.Our trade deals with Israel,Canada and Japan also include conformity assessment agreements.These agreements have helped facilitate the trade in manufactured goods,covering 19 billion of bilateral trade in 2021,of which 11 billion was UK exports.116 Single Trad
234、e Window We are taking action to ensure British businesses are taking advantage of the opportunities of free trade.This includes transforming our support services and streamlining our processes.Through the UK Single Trade Window we will simplify import and export procedures.The programme is on track
235、 to deliver the core functionality by the end of 2024,where UK importers and exporters will be able to register,access integrated guidance,make customs import and export declarations,and manage customs authorisations and licenses through the platform.Building Resilience in Critical Goods and Sectors
236、:Batteries Batteries are essential products in modern,industrialised economies.In recent years,batteries have grown in importance,powering many of the technologies that will enable the transition towards net zero.This includes personal and commercial transportation and grid-scale battery energy stor
237、age systems,which allow us to use electricity more flexibly and decarbonise the energy system cost-effectively.The global demand for batteries is expected to rise dramatically over the coming decades117 and the UK is uniquely positioned to seize the opportunity thanks to our key areas of comparative
238、 advantage:Innovation:the UK is playing an important global role in R&D into battery chemistry optimisation,underpinned by the strength of our world-class research base.The UK ranks third in the world in terms of research quality into industrial batteries.118 Start-ups:the UK has a leading EV batter
239、y start-up ecosystem,with the second highest enterprise value in Europe and the fourth worldwide.119 Automotive manufacturing:the UKs advanced automotive manufacturing sector has an annual turnover of 70 billion and employs 166,000 people across the country.120 115 Department for Business and Trade.
240、UK-Australia Free Trade Agreement.2023.116 Department for International Trade.Annual Report and Accounts 2022-2023.2023.117 The Faraday Institution.The Gigafactory Boom.Faraday Insights:Issue 2.2022.118 Government Office for Science.Rapid Technology Assessment:Novel Batteries.2023.119 UK Research an
241、d Innovation and Dealroom.co.Electric Vehicle Battery Tech in the UK.2023.120 DBT analysis based on Office for National Statistics.Monthly Business Survey Turnover in Production Industries.2022;Employee Jobs by Industry.2023;Self Employment Jobs by Industry.2023.28 A successful battery industry coul
242、d be an important source of jobs and regional economic growth.A battery industry that supports domestic demand for EVs could employ 100,000 people by 2040(35,000 in cell manufacturing and 65,000 in the battery supply chain).121 To support this growth,the Government has published the first UK Battery
243、 Strategy to have a globally competitive battery supply chain that supports economic prosperity and the net zero transition.Critical Imports and Supply Chain Strategy The Government is committed to ensuring the UK continues to have access to goods required for our economic security and prosperity,th
244、rough resilient global supply chains.The Government will shortly publish a Critical Imports and Supply Chains Strategy,the UKs first overarching strategy focused on building resilience across our imports.This strategy will focus on goods critical to the UKs thirteen designated Critical National Infr
245、astructure sectors and five key growth sectors,including advanced manufacturing.It will set out both an overarching vision for the long-term resilience of our critical supply chains and the actions Government will take,working with business and our international partners,to achieve this vision.These
246、 will include the steps to build our supply chain analysis capabilities,continue to provide a reliable and supportive business environment,respond and adapt to shocks,address long-term trends,and expand collaboration between Government and industry on issues of supply chain resilience.Critical Miner
247、als Critical minerals are minerals with the highest importance to the UK economy and the highest levels of risk to their security of supply.The Critical Minerals Intelligence Centre(CMIC)identified the UK as having 18 critical minerals essential to the development of its supply chain in its first cr
248、iticality assessment,published in 2022.122 Criticality is constantly evolving,and this assessment will be updated by Summer 2024.The CMIC is also undertaking a foresight study in the UKs demand for critical minerals across its clean energy industries.Many of these critical minerals are produced in c
249、omparatively small volumes today or as by-products of other mining activities.The production of electric vehicles,aerospace and defence equipment,hydrogen technologies,and compound semiconductors are highly mineral-intensive.The UKs commitments to transition to net zero and develop our advanced manu
250、facturing capability both depend on globally secure sustainable critical mineral supply chains.The UKs Critical Mineral Strategy123 and March 2023 Critical Minerals Refresh124 set out the Governments plans to accelerate the growth of domestic capabilities,collaborate with international partners,and
251、enhance international markets to make them more responsive,transparent,and responsible.The Government has a range of critical mineral partnerships with countries including Australia and Canada,and engages in multilateral forums such as the Minerals Security Partnership,the 121 The Faraday Institutio
252、n.UK Electric Vehicle and Battery Production Potential to 2040.Faraday Report:Annual Gigafactory Study.2023.122 Critical Minerals Intelligence Centre.Resilience for the Future:The United Kingdoms Critical Mineral Strategy.2022.123 Department for Business and Trade.Critical Minerals Strategy.2023.124
253、 Department for Business and Trade.Critical Minerals Refresh.2023.29 International Energy Agencys Critical Minerals Working Party and critical minerals work at the G7.These partnerships help diversify supply chains,promote sustainable and responsible practices,and increase the UKs security of supply
254、.Each partnership leverages the UKs strengths in mining including services,finance,and R&D,and seeks to embed high environmental,social,and governance standards across critical minerals supply chains.Our international collaboration on critical minerals is central to the strategy.Recent advances incl
255、ude:A Memorandum of Cooperation on Critical Minerals with Japan during the latest G7 Trade Ministers Meeting.125 As part of the Atlantic Declaration announced by the Prime Minister and President Biden in June,we launched negotiations on a Critical Minerals Agreement.Once concluded this enables those
256、 minerals extracted or processed in the UK to count toward sourcing requirements for clean vehicles eligible for tax credits under the US Inflation Reduction Act.126 Funding through the Foreign,Commonwealth and Development Office to the World Bank Groups Resilient and Inclusive Supply-chain Enhancem
257、ent(RISE)initiative to support the development of sustainable and responsible supply chains in clean energy products using critical minerals.This will lead to more quality local jobs and economic growth in low and middle income countries.The UK Government remains committed to eliminating forced and
258、child labour from global supply chains,and is funding a number of initiatives that seek to address these issues where critical minerals are sourced.The Government is assessing the need for further support for financing in relation to critical minerals and considering options for how any gaps identif
259、ied might be addressed.This includes assessing the role that UK Export Finance could play where finance is needed and there is a clear link to exports.125 Department for Business and Trade.UK-Japan Critical Minerals Memorandum of Cooperation.2023.126 Prime Ministers Office and others.The Atlantic De
260、claration.2023.Cornish Lithium Cornish Lithium received a 24 million equity investment from the UK Infrastructure Bank in August 2023,which was accompanied by an additional 30 million in private sector investment,allowing it to progress its Trelavour hard-rock mine project.This is part of a larger f
261、unding package of up to an additional 168 million second-stage financing to make progress towards the creation of a domestic supply of lithium for electric vehicle batteries.Source:Cornish Lithium.Landmark US$67 million Investment for Cornish Lithium.2023.30 Chemicals Chemicals play a vital role in
262、the Governments commitment to reach net zero by 2050.The chemicals sector is key to unlocking decarbonisation pathways for manufacturing sectors.It provides the products needed to grow and expand sustainable technologies such as CCUS,the hydrogen economy,EV supply chains,as well as renewable and cir
263、cular feedstocks to reduce the carbon footprint of end-consumer products.Government has been exploring options to significantly reduce costs for businesses under the UKs regulatory framework for chemicals(UK REACH),thus creating a better environment for businesses in the UK whilst establishing a mor
264、e comprehensive picture of where and how chemicals are used in Great Britain.Semiconductors The semiconductor industry is crucial to help deliver a resilient UK supply chain for our future green sectors,including automotive and aerospace.In May,the Government published its National Semiconductor Str
265、ategy setting out how the UK would build on its strengths in design,research,and compound chip technologies.This includes an up to 1 billion investment to improve infrastructure,power research and develop and facilitate greater cooperation.127 This is in addition to extensive funding provided to the
266、 sector to date.The Government has provided 539 million in grants for research and 214 million directly to SMEs in the sector over the last 10 years.128 UK capabilities include the Fraunhofer Centre for Applied Photonics,the Cambridge Centre for Gallium Nitride,and the Compound Semiconductor Applica
267、tions Catapult based in Newport,Wales.The Government has taken action to further support the competitiveness of the semiconductor manufacturing sector.We know that some companies struggle to access the finance they need to grow.As announced at the Autumn Statement,the Government is unlocking new sou
268、rces of finance for advanced manufacturing.The Chancellor has recently clarified the Governments priorities for the UKIB,to ensure it is able to invest in critical supply chain where the Banks strategic objectives can be met,including semiconductor manufacturing.The Bank are actively engaging with t
269、he sector and exploring market opportunities.127 Department for Science,Innovation and Technology.National Semiconductor Strategy.2023 128 Department for Science,Innovation and Technology.National Semiconductor Strategy.2023 Flue2Chem Spearheading innovation in this space,a consortium of businesses,
270、universities and non-Governmental organisations from across the UK has come together to develop the Flue2Chem project.Supported by a 2.7 million grant from UK Research and Innovation(UKRI)Transforming Foundation Industries Challenge,it aims to develop new business models and capabilities that utilis
271、e industrial waste gases from a range of manufacturing industries to produce sustainable materials for consumer products.Source:United Kingdom Research and Innovation.Projects aim to Reduce Waste and Improve Energy Efficiency.2023.31 C:Reducing Costs and Removing Barriers In the long run,business in
272、vestment in the UKs manufacturing sector will be driven by the UK building on its competitive business environment through reducing costs and removing the barriers placed on manufacturers.We are doing so through ensuring our business tax regime and energy costs are competitive,minimising regulatory
273、and planning barriers,and reviewing our skills,finance,and tax levers.Through reducing these costs and removing barriers our combined measures in this plan offer a long-term commitment to attracting investment in the sector.Competitive Tax Environment-Full Expensing The UK has a highly competitive b
274、usiness tax regime,with an internationally competitive rate and some of the most generous investment incentives among major economies.It has the lowest Corporation Tax rate in the G7 at 25%.129 At Autumn Statement the chancellor announced that Full Expensing would be made permanent solidifying our p
275、osition at the top of the rankings of OECD countries plant and machinery capital allowances,and amongst the most competitive capital allowance regimes in the world.The UK offers attractive venture capital schemes to help small and medium enterprises expand.The Patent Box offers a 10%corporation tax
276、on profits attributable to patents and similar intellectual property.130 The Government is committed to internationally competitive R&D tax reliefs.Following consultation,the current R&D Expenditure Credit(RDEC)and SME schemes will be merged from accounting periods beginning on or after 1 April 2024
277、,simplifying the system and providing greater support for UK companies to drive innovation.131 The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25%to 19%.The intensity threshold in the R&D intensives scheme will also be reduced from 40%to 30%for account
278、ing periods that start on or after 1 April 2024.A one year grace period will also be introduced,providing certainty for companies who dip under the 30%threshold that they will continue to receive relief for one year.Taken together these changes will provide 280m of additional relief per year by 2028
279、-29 to help drive innovation in the UK.Competitive Energy Costs and Connections We are committed to enhancing our energy security and seizing the economic opportunities of the transition to net zero.To achieve this,we aim to double Britains electricity generation capacity by the late 2030s and fully
280、 decarbonise the power sector by 2035,subject to security of supply.Industrial energy support:The Government is committed to minimising energy costs for energy intensive industries to help ensure they remain strong and competitive.Between 2013 and 2021 we provided over 2 billion of relief from polic
281、y costs passed on by electricity suppliers to over 300 129 Organisation for Economic Co-Operation and Development.Statutory Corporate Income Tax Rates,Combined Tax Rates.2023.130 HM Revenue and Customs.Use the Patent Box to reduce your Corporation Tax on profits.2020.131 HM Treasury.Autumn Statement
282、 2023.2023.32 businesses across the UK.132 In Spring 2023,the British Energy Supercharger133 was announced and will provide further support to energy intensive industries.Grid Connections:As highlighted in the PMs September Speech,ensuring grid connections are not a blocker to investment as we trans
283、ition to a net zero energy system is a priority for Government.The Government is working with Ofgem and network companies to release network capacity and improve the connections process.Actions underway by network companies are already leading to customers receiving revised earlier connections.The C
284、onnections Action Plan published on 22 November,jointly with Ofgem,builds on this work to go further and faster to reduce connection timescales.134 Through the actions outlined in the plan,we aim for the vast majority of projects up from 14%today-to get their requested connection date to the transmi
285、ssion network.We also aim to reduce the average delay a project faces to connect to the transmission network from 5 years to 6 months.Action taken collectively with Ofgem,the ESO,and network companies will release 100GW of capacity equivalent to around a quarter of the electricity needed to power ou
286、r economy in 2050.135 This will help open up the path to the decarbonisation of key manufacturing sectors,allowing the UK to remain a world-leader in decarbonisation.Our Connections Action Plan formed part of a wider package of Electricity Network announcements,which collectively will reduce consume
287、r bills,drive local jobs,support economic growth across the UK,and bring forward 90 billion of investment over the next 10 years.136 For example,alongside the Connections Action Plan,the Government published the Transmission Acceleration Action Plan,to set out how we can halve the end-to-end build t
288、ime of electricity transmission network infrastructure.137 The Government has committed to make it easier for solar panels to be installed on the rooftops of commercial and industrial buildings such as warehouses and factories,as well as car parks,through changes to permitted development rights.The
289、Government will also publish a solar roadmap in 2024,setting out a clear step by step deployment trajectory to enable us to meet our target of 70GW of solar power by 2035.We have also established a joint Government and Industry Taskforce,covering both ground mounted and rooftop solar to drive forwar
290、d the actions needed to make this ambition a reality.138 132 Department for Business,Energy and Industrial Strategy.Government to consider further relief for energy intensive industries.2022.133 Department for Business and Trade.Government action to supercharge competitiveness in key British industr
291、ies and grow economy.2023.135 Department for Energy Security and Net Zero.Huge boost for UK green industries with 960 million government investment and major reform of power network.2023 136 Department for Energy Security and Net Zero.Huge boost for UK green industries with 960 million government in
292、vestment and major reform of power network.2023 137 Department for Energy Security and Net Zero.Transmission Acceleration Action Plan.138 HM Government.Solar Taskforce.2023.33 The net zero transition for energy for heat is being supported by 500 million to develop heat networks.139 Heat Networks are
293、 often the lowest cost,low carbon heating option,particularly in high density urban areas.To better enable a growth in heat connections to around 20%of total heat by 2050,heat network zoning is being introduced in England.At Autumn Statement 2023,the Government announced it is providing support to h
294、elp industry transition to a resilient,low-carbon,and competitive future.140 This includes spending 185 million on the Industrial Energy Transformation Fund(IETF)to support industrial sites with investment in more energy efficient and low-carbon technologies.This grant funding will come from the 6 b
295、illion announced at Autumn Statement 2022 to support energy efficiency from 2025,141 with further allocations set out in due course.The Government is also providing around 300 million a year in tax relief in exchange for meeting energy efficiency targets under the new six-year Climate Change Agreeme
296、nt Scheme,with associated relief running until 31 March 2033.142 Manufacturing sectors that meet eligibility requirements but do not currently participate in the Climate Change Agreements Scheme are invited to make a proposal to be added to it.Pilot Business Energy Advice Service trial in the West M
297、idlands:This offers subsidised energy assessments and grant funding to implement energy efficiency measures to SMEs in the region.Businesses will be able to apply for grants up to 100,000 covering up to 50%of the total project costs.143 Regional Support:Freeports and Investment Zones Freeports are n
298、ew manufacturing hubs for strategic sectors located in places with strong industrial heritage and excellent connectivity.They create a special,business-friendly environment,offering manufacturers a range of incentives to reduce their costs and support growth.These include generous tax reliefs on new
299、 investment,simplified customs processes,dedicated government support for trade and innovation,and a facilitative planning environment.Each Freeport is also backed by up to 26 million Government funding to facilitate the development of targeted sites and will benefit from the reinvestment of locally
300、 retained business rates.144 There are 12 Freeports across the UK:in addition to the eight Freeports operational in England,two new Green Freeports have been announced in Scotland and two Freeports in Wales.145 At Spring Budget 2023,the Government launched the refocused Investment Zones programme to
301、 catalyse a small number of growth clusters across the UK,including four across Scotland,Wales,and Northern Ireland.146 The Government has identified advanced manufacturing as one of five 139 Department for Energy Security and Net Zero and other.Energy Security Bill factsheet:Heat Networks Regulatio
302、n and Zoning.2023.140 HM Treasury.Autumn Statement 2023.2023.141 HM Treasury.Autumn Statement 2022.2022.142 HM Treasury.Chancellor backs business and rewards workers to get Britain growing.2023.143 Business Growth West Midlands.Business Energy Advice Service(BEAS).2023.144 Department for Levelling U
303、p,Housing and Communities.UK Freeports Programme Annual Report 2022.2022.145 Department for Levelling Up,Housing and Communities.UK Freeports Programme Annual Report 2022.2022.146 HM Treasury.Spring Budget 2023.2023.34 priority sectors around which Investment Zones will be focused.In July 2023,the G
304、overnment announced that the South Yorkshire region will be home to the UKs first advanced manufacturing Investment Zone.This will help bring an estimated 8,000 new jobs and 1.2 billion in investment to the region by 2030.147 The Investment Zone will capitalise on the regions existing strengths in t
305、he aerospace sector by bringing together the University of Sheffields Advanced Manufacturing Research Centre and aerospace sector businesses to pursue new innovations and further investment to the region.At Autumn Statement,the Chancellor announced a further three Advanced Manufacturing focused Inve
306、stment Zones in the East Midlands,Greater Manchester and the West Midlands:148 East Midlands,local partners expect that the Investment Zone will help to bring an estimated 4,200 jobs to the region and help to leverage over 380 million in private investment.The East Midlands Investment Zone will capi
307、talise on the regions existing strengths in the advanced manufacturing and green industries through the investment made by Laing ORourke in its Centre of Excellence in Modern Construction near Worksop and Rolls-Royces contribution to the Nuclear Skills Academy at Infinity Park Derby.The Investment Z
308、one will allow the development of new technologies and products to help support infrastructure,modern methods of construction and nuclear development in the civil and defence spaces.Greater Manchester,local partners expect that the Investment Zone will help to bring an estimated 32,000 jobs to the r
309、egion and help to leverage 1.1 billion in private investment.The Investment Zone expands the city regions world class advanced materials cluster,with research facilities and universities at the core,and innovative materials and manufacturing businesses across the wider city region,collaborating to t
310、ranslate R&D and new discoveries into scaled up commercial production.This is attracting further private sector investment,with over 500 companies in Greater Manchester in advanced materials and manufacturing.New investments are anchoring the Investment Zone,ranging from materials science at First G
311、raphene and Hydrograph,to the continued growth of multinational manufacturers,such as Kadant and Werit.West Midlands,local partners expect that the Investment Zone will help to bring an estimated 30,000 jobs to the region and help to leverage 2 billion in private investment.The Investment Zone will
312、capitalise on the West Midlands globally renowned strengths in advanced manufacturing and engineering,with all six of the regions universities working with industry leaders to drive innovation in battery technology,green industries,and digital technology.On 24 November,the Government and the forthco
313、ming North East Mayoral Combined Authority,jointly announced that the North East Investment Zone will focus on Advanced Manufacturing and Green Industries,building on the regions long-standing strengths.The Investment Zone will help leverage significant private funding and help deliver more than 4,0
314、00 jobs over the first five years of the programme.The Investment Zone will capitalise on the regions existing strengths,including as a world leader in automotive and advanced manufacturing,electric vehicle production,battery manufacturing,the offshore wind sector,and advanced low-carbon materials,t
315、o pursue new innovations and further investment to the region.This will build on a new 147 South Yorkshire Combined Authority.South Yorkshire Investment Zone to Create Thousands of New Jobs.2023.148 HM Treasury.Autumn Statement 2023.2023.35 Nissan-led investment worth 2 billion into the North East,1
316、49 recent investment from businesses including Equinor and JDR Cables,and the strong support of the regions Universities and Catapult Centres.Local Authorities and Planning The Government will strengthen the capacity of the planning system to deliver a better service for businesses,including introdu
317、cing new premium planning services across England with guaranteed accelerated decision dates for major applications and fee refunds wherever these are not met.The government will also invest 5 million to incentivise greater use of Local Development Orders in England,to end delays for businesses so t
318、hat key commercial projects secure planning permission faster.150 Local authorities have a local leadership and convening role,which means they can work closely with businesses and investors to encourage investment that would not otherwise be obtained,and make it easier for place-based investment mo
319、dels to be developed.Local authorities have a key role to play in delivering net zero but can face a lack of capacity and skills needed to develop commercially viable investment propositions for investors.The UK Government is funding work to address this by providing a range of support for example,t
320、hrough the Local Net Zero Hubs Programme,which supports local authorities to develop net zero projects that can attract commercial investment and through Net Zero Go,a digital platform launched in 2022,which supports local authorities in developing projects through the sharing of knowledge and best
321、practice.Harrington Review Lord Harringtons Review of the governments approach to attracting foreign direct investment has been published alongside the Autumn Statement.151 The Government has responded and accepted in principle his headline recommendations.A new Ministerial Investment Group will be
322、established,tasked with driving the governments ambition on investment.This will be backed by additional resources and an improved toolkit for the Office for Investment,allowing it to deepen its world-class concierge offer to strategically important investors.Skills for Manufacturing Modelling carri
323、ed out by PricewaterhouseCoopers and the World Bank in 2022 suggests upskilling the UK manufacturing sector could deliver 3.2%GDP growth by 2030 through raising productivity.In the automotive sector alone over 60%of current manufacturing roles relating to electric vehicle power technologies will nee
324、d upskill or reskill.152 But the sector currently faces skills challenges.The 2022 Employer Skills Survey indicates 42%of manufacturing vacancies are“skills shortage vacancies”compared to 36%for the economy as a 149 Prime Ministers Office and others.Nissan triples investment in electric vehicle prod
325、uction in the UK.2023.150 HM Treasury.Autumn Statement 2023.2023.151 HM Treasury.The Harrington Review of Foreign Direct Investment.2023.152 The Catapult Network.The Opportunity for A National Electrification Framework and Forum.2021.36 whole.153 Make UK believes filling current vacancies could itse
326、lf contribute close to 7 billion extra annually to UK GDP.154 Government supports manufacturing through our flagship Apprenticeship Programme,delivering manufacturing apprenticeships from Aerospace Engineering to Machining.This is bolstered by Institutes of Technology who are working on manufacturin
327、g,including advanced manufacturing industry pathfinders and skills bootcamps delivering manufacturing skills in areas such as clean energy,renewable energy,industry and transport.To help smaller employers benefit from apprenticeships,the Department for Education(DfE)has launched an SME Pathfinder,in
328、cluding prioritising manufacturing,in four regions of the North of England to support those that have not had an apprentice in the past two years to do so from recruitment to accessing funding.Recent further education reforms have put technical skills at the heart of the Governments Post 16 offer.Th
329、e Institute for Apprenticeships and Technical Education has worked with industry to produce 378 occupational pathways in Engineering and Manufacturing.We work closely with Made Smarter to identify the key skills needed to enable Industry 4.0.155 The government is supporting plans to catalyse the gro
330、wth sectors including advanced manufacturing by committing 50 million to deliver a 2-year apprenticeships pilot in England to explore ways to stimulate training in these sectors and address barriers to entry in high-value apprenticeships.Further details will be announced in the new year.In addition,
331、to support the Advanced Manufacturing Plan,the Department for Business and Trade will partner with the Department for Energy Security and Net Zeros Green Jobs Action Plan to publish an action plan on green skills in 2024.We will work closely with the DfE and the Department for Environment,Food and R
332、ural Affairs(Defra)to develop a forum with the National Manufacturing Skills Task Force.This will focus on issues that businesses have highlighted to us,including:Attracting more new entrants and promoting manufacturing as a life-long career.Supporting retraining for the digital and net zero transit
333、ions and making the skills system more responsive to future business needs.Exploring how we improve choice and availability for workers to find the upskilling courses they want.Considering how best to attract global talent for the overall benefit of UK industry.In Autumn Defra will publish a response to the Independent Review into Labour Shortages in the food supply chain.153 HM Government.Employe