Prime Minister Keir Starmer has today announced a major £975 million investment in the UK aerospace industry over the next five years, aiming to secure thousands of highly skilled jobs across the country.
The funding, delivered through an extension of the Aerospace Technology Institute (ATI) Programme, will support innovation hubs in key locations including Broughton, Filton, and Derby. The initiative is expected to accelerate technological advancement and create new employment opportunities in an industry that contributed nearly £40 billion to the economy last year.
During his first visit to Wales since the Budget, Starmer highlighted the importance of the aerospace sector, stating, “The UK’s aerospace industry is truly world-class. By accelerating our investment, we will unlock the tech of the future and take a crucial step forward in our mission to deliver growth and opportunity across our country.”
The investment package includes £49 million specifically earmarked for aerospace projects in Wales, where over 20,000 people are currently employed in the sector. The region, together with the Southwest, is responsible for designing and assembling approximately half of the world’s large civil aircraft wings.
Business and Trade Secretary Jonathan Reynolds underlined the strategic importance of the investment: “Our world-class aerospace sector added almost £40 billion to the economy last year. This funding will ensure the UK can continue to pioneer new technologies.”
The government’s commitment has received strong support from industry leaders, with Airbus UK Chairman John Harrison welcoming the announcement as providing “certainty for long-term sustainable aviation investment and highly skilled jobs.”
First Minister of Wales Eluned Morgan also praised the initiative, noting that “Wales is a cornerstone of the UK’s Aerospace industry.”
The funding will be available through a bidding process opening in January, with projects expected to commence in autumn. The initiative aligns with the government’s Industrial Strategy and Net Zero targets, while also supporting defence capabilities through the RAF and Royal Navy.
