2 minute read - 18th June 2025
Government announces £250m of funding for green aerospace projects
UK aerospace will be boosted by more than £250m in funding for green aerospace tech projects in a bid to support greener air travel.
Announced by industry minister Sarah Jones at the Paris Air Show, the combined funding from government and industry will drive forward the development of cutting-edge technologies, including advancements in gas turbines, hydrogen-powered flight and the use of laser technologies for large-scale aerostructure manufacturing.
It aims to help attract even more investment into the UK’s world-leading aerospace sector and support thousands of high-skilled jobs outside of London. The announcement comes as new figures from the industry’s trade association ADS show the UK’s aerospace sector added £13.6bn to the economy last year, an increase of almost 50 per cent compared to 2014, and supported 100,000 direct jobs.
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The government has announced £250m of funding for cutting-edge aerospace technology projects to drive greener air travel / Picture: Getty/iStock
It marks the latest win for the UK’s aerospace sector in the run-up to the launch of the government’s modern Industrial Strategy, which will target growth in the UK’s leading advanced manufacturing and defence sectors, and give businesses the confidence they need to invest in the UK.
Sarah Jones, industry minister, said: “This government is backing aerospace. This investment will keep it at the forefront of innovation, not only delivering economic growth but boosting the charge to net zero 2030, two key pillars of our Plan for Change. This is the latest win for British aerospace in the run-up to the launch of our Industrial Strategy, which will turbocharge growth in our advanced manufacturing and defence sectors to take them to new heights, bringing new high-skilled jobs to every corner of the UK.”
During her visit to the Paris Air Show – the world’s largest event for the civil aerospace sector – Jones will tour the UK’s pavilion and meet with British companies exhibiting, before meeting with a wide range of leading aerospace companies, such as Airbus, Rolls-Royce and GKN.
The meetings will focus on encouraging even greater investment in British aerospace, promoting the UK’s world-class R&D offer on the global stage, and exploring how the government can support businesses to increase their manufacturing and operations in the UK. Small and medium-sized businesses across the UK continue to benefit from the ATI Programme, with more than 302 receiving support since 2013, and another 19 investing over £22.8m in innovation in today’s announcement.
The UK aerospace sector had an annual turnover of £34bn in 2024 and spent £1.9bn on business R&D – a record level, driven by ongoing investment in both sustainable technology and market manufacturing technology to help ramp up UK production.
