Britain’s automotive sector is set to receive a major boost after the Government announced almost £130 million of industry-matched investment to accelerate the development of next-generation zero-emission vehicle technologies and support high-skilled jobs across the UK.
The funding package, delivered through the Government’s Modern Industrial Strategy, is expected to support more than 1,800 jobs directly, alongside thousands more throughout the automotive supply chain. Ministers say the investment will help strengthen the UK’s manufacturing base, drive innovation and support economic growth in regions that have long been at the heart of vehicle production.
Almost £50 million in government funding has been awarded to automotive manufacturers and research and development partners to help bring advanced zero-emission vehicle technologies to market at scale. The investment is designed to support both the growth of the sector and the affordability of electric vehicles for consumers.
The funding forms part of the DRIVE35 programme, a £4 billion commitment running until 2035 and described as the largest government investment in the UK automotive industry since the Second World War. The programme is intended to accelerate the electrification of the sector while helping British businesses innovate, expand and compete internationally.
Speaking about the announcement, Industry Minister Blair McDougall said:
“Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too.
“This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.
“Through our Modern Industrial Strategy we’re backing working people and British businesses to deliver growth in every part of the country.”
The latest funding will support automotive innovation projects across the UK, from Gateshead to Crewe, with particular emphasis on regions recognised as manufacturing powerhouses, including the North East and West Midlands.
Major companies benefiting from the programme include Turntide Technologies and Bentley, with funding aimed at ensuring that future vehicle technologies are designed, developed and manufactured in Britain.
The announcement follows a previous allocation of £100 million in DRIVE35 grant funding that has already been directed towards supply chain businesses in the North East and West Midlands. That funding was designed to help manufacturers prepare for the transition to electric vehicle production and secure long-term competitiveness.
Alongside support for vehicle electrification, the Government is also investing in the rapidly growing Connected and Automated Mobility (CAM) sector. According to industry body SMMT, the industry could generate tens of thousands of high-quality jobs and contribute around £66 billion to the UK economy by 2040.
To support that ambition, ministers have announced £17 million of funding for nine CAM Pathfinder projects, helping innovators develop, test and commercialise advanced transport technologies. The move is intended to cement the UK’s position as a global leader in connected and autonomous mobility solutions.
Combined with industry contributions, the latest package brings total investment to almost £130 million, highlighting the Government’s commitment to advanced manufacturing, clean transport technologies and regional economic growth.
Image credit: iStock
