The aerospace sector will be affected by a significant reduction in demand due to the global impact of Covid-19. We are supporting its long-term return to growth through the Aerospace Growth Partnership, with £1.95 billion of funding for research and development (R&D), matched by industry, over 13 years up to 2026.
UK Research & Innovation (UKRI) is also providing £125 million to the Future Flight Challenge for research on greener ways of flying through advances in electric and autonomous flight technology, which is expected to generate an additional £175 million of match-funding from industry.
We are also co-investing in aerospace productivity improvement and innovation programmes to support small and medium-sized businesses, backed with over £135 million of public funding.
In addition, the aerospace sector and its aviation customers are being supported with over £8.5 billion support through the Bank of England’s Covid Corporate Financing Facility, grants for R&D, loan guarantees, and support for aerospace exports.