3 min read - 23 Jul, 2026
Government unveils £600m support package for UK aerospace
At the Farnborough International Airshow, the new Business, Innovation, Science and Trade Secretary, Jonathan Reynolds, has unveiled a £600m support package for the UK aerospace industry.
The package includes over £500m for cutting-edge aerospace research and technology projects to pioneer greener air travel, alongside a new £100m Aerospace Supply Chain Fund to help ambitious suppliers scale up and meet the demand in a fast-growing and important industry.
The aerospace research projects will pioneer a wide range of technologies, from advanced aircraft wings and future engine systems to hydrogen-powered flight, digital engineering and advanced manufacturing.
Key initiatives include Airbus-led projects developing next-generation wing technologies and manufacturing processes, Rolls-Royce projects building on its world-leading UltraFan engine programme, and companies such as ZeroAvia and Safran advancing hydrogen and electric propulsion and more efficient aircraft systems.
The government has unveiled a £600m package to back British aerospace innovation, incl. research and development support and a new supply chain fund.
The new support forms part of the Prime Minister’s pledge to reindustrialise Britain and will help businesses in every part of the country develop cutting-edge new aerospace technologies, supporting innovation, attracting investment and securing high-skilled jobs in high-tech roles–90 percent of which are outside London and the South East.
Jonathan Reynolds said: “Aerospace is one of Britain’s great industrial success stories. Partnerships like this show the power of bringing business and innovation together to harness our strong manufacturing base and cutting-edge research to support skilled jobs right across the UK.”
The £100m Aerospace Supply Chain Fund is delivered by the government and the British Business Bank, working with industry partners including Airbus, Rolls-Royce, GKN Aerospace, Safran, and the trade body ADS.
The proposed fund will help UK aerospace suppliers access the growth capital they need to expand, invest in productivity and workforce capability, and compete for new opportunities in a growing global market. By strengthening British manufacturing capability, it will support businesses to scale and create high-quality jobs across the country.
The package forms part of the Prime Minister’s pledge to help secure high-skilled jobs in high-tech industries–90 percent of which are outside London and the South East.
Sue Partridge, UK country manager, Airbus, added: “Taking new aircraft technologies from concept to the market requires long-term commitment from public-private partnerships, but also demands that the supply chain ecosystem is empowered to match the pace of innovation. This funding for next-generation technology projects and the wider supply chain supports the UK in delivering on its ambition for aerospace.”
The government has also signed a partnership with Embraer to deepen cooperation on aerospace innovation, research and development, and supply chain opportunities.
The Memorandum of Understanding will help identify new opportunities for UK businesses within Embraer’s global supply chain, strengthen links between the UK and one of the world’s leading aerospace companies, and create new opportunities for British firms to grow and compete internationally.
The Aerospace Growth Partnership (AGP) is also publishing its latest strategy update at Farnborough, setting out a shared government and industry plan for the UK aerospace sector through to 2030.
The report reinforces a joint ambition to double the UK’s share of the global aerospace market by 2035 and position the sector for up to fourfold growth by 2050, while supporting the transition to net zero aviation through investment in innovation, skills and a stronger supply chain.
