UK automotive industry ecosystem boosted by funding pledge

Ben Gardner of Pinsent Masons was commenting after the government said it would invest more than £2 billion to support the UK automotive industry between 2025 and 2030. The funding commitment is part of a wider package of support for UK manufacturing, with a further £975 million pledged for aerospace, £960m earmarked for a Green Industries Growth Accelerator to support clean energy manufacturing, and £520m set aside for life sciences manufacturing.

News of the funding package precedes other UK government announcements expected this week which will be relevant to automotive companies. These include publication of a new battery strategy and a new advanced manufacturing plan, and the chancellor’s autumn statement.

Gardner said the measures, combined with the recent introduction of the Automated Vehicles Bill into the UK parliament, could spur what he described as ‘UK automotive 2.0’.

“This funding pledged, coupled with the promise of regulatory certainty to come in respect of self-driving vehicles via the new Bill, could help a new ecosystem of automotive businesses to emerge in the UK, not only with skills and expertise in traditional manufacturing but also software, advanced hardware, and cyber – bringing with it the promise of new highly paid jobs,” Gardner said.

“Currently, the UK is well-recognised for its track record in automotive manufacturing innovation and for its technical expertise. The country’s strong financial services and technology sectors mean manufacturers have access to insurance, capital, and technology solutions and skills, while its world class universities also offer the industry access to next generation talent. These strengths, together with the latest wave of support on offer from government, can help domestic manufacturers and their supply chains flourish and attract inward investment from global organisations looking to test, develop, and commercialise the latest automotive and mobility technologies,” he said.