A Manufacturing Specific Summary of the spring budget by our partners at Azets.
For companies in the manufacturing sector in the North East of England, the Spring 2024 Budget introduces several measures aimed at boosting investment, growth, and innovation:
- Advanced Manufacturing Plan: The government is committed to making the UK the best place to start, grow, and invest in a manufacturing business. This commitment includes a £4.5 billion funding package announced at the Autumn Statement 2023 to unlock investment in strategic manufacturing sectors such as automotive, aerospace, life sciences, and clean energy. This package aims to support cutting-edge R&D projects, leveraging the UK’s innovation capabilities to anchor manufacturing in the country.
- Aerospace and Automotive Support: Over £2 billion is allocated for the automotive industry and £975 million for aerospace, available for five years from 2025. This funding is part of the government’s established programs to stimulate investment into these critical manufacturing sectors, including R&D support for small businesses through competitions and seamless transitions to future-focused programs like Auto2030 aimed at zero emission vehicle manufacturing.
- Apprenticeship Growth Sector Pilot: The budget confirms plans for a £50 million pilot to boost funding for providers delivering high-value apprenticeship standards in advanced manufacturing, green, and life sciences sectors. This initiative is designed to support the development of skilled labor in these high-growth areas.
- Green Industries Growth Accelerator (GIGA): A further £120 million is allocated for GIGA to support the expansion of low carbon manufacturing supply chains across the UK. This funding is part of a broader commitment to support green industries, including offshore wind, electricity networks, Carbon Capture Utilisation and Storage (CCUS), and hydrogen supply chains.
- Investment Zones: The government has announced further details on Investment Zones, including in the North East of England. These zones are designed to catalyze local growth and investment through offering tax reliefs and initial investments in skills, research, innovation, and infrastructure.
- North East “Trailblazer” Devolution Deal: A new Level 4 “trailblazer” devolution deal with the North East Mayoral Combined Authority includes a package of new funding potentially worth over £100 million. This deal aims to support the region’s growth ambitions, including a new Growth Zone.
These measures collectively aim to stimulate the manufacturing sector in the North East of England, supporting the region’s transition towards high-value manufacturing and green industries, enhancing skills and innovation capabilities, and fostering a conducive environment for growth and investment.
