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Chancellor Jeremy Hunt Announces Massive £360m Funding Boost for Green Industries Growth Accelerator!

Green Funding Boost Sparks Hope for Future of UK Manufacturing and Research

March 4, 2024, 8:56 pmupdated March 11, 2024, 11:44 pm 1.5k Views

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Green Industries Growth Accelerator

Chancellor Jeremy Hunt Announces Massive £360m Funding Boost for Green Industries Growth Accelerator!

Green Industries Growth Accelerator: The government’s commitment to investing in green technology programs is a crucial step towards securing a brighter future for Britain.

NewsBurrow Press Team – March 15, 2024

Chancellor Jeremy Hunt is set to unveil a significant funding boost for the Green Industries Growth Accelerator (GIGA) as part of the UK’s 2024 Budget. The £360m investment is expected to fuel a range of manufacturing and R&D projects, with a particular focus on green industries.

The announcement comes amid ongoing debates surrounding the affordability of proposed tax cuts, with the Treasury confirming its commitment to support green technology programs. Notably, £200m will be allocated to zero-carbon aircraft technology development, with an additional £73m earmarked for green automotive technology projects.

The Green Industries Growth Accelerator (GIGA) will receive a £120m increase, bringing its total value to nearly £1.1bn. Chancellor Hunt emphasized the importance of investing in the industries of the future, aiming to position the UK as a global leader in manufacturing while securing highly-skilled jobs and driving long-term change.

Energy Security and Net Zero Secretary Claire Coutinho welcomed the funding boost, highlighting the UK’s track record as an energy pioneer in advanced manufacturing. The investment is expected to unlock further low-carbon opportunities, with £24bn in investment since September alone.

The funding wave includes £92m for life science projects, £40m for zero-carbon aircraft engine technology led by Marshall Group, and £96m for green aviation projects led by Airbus. Additionally, £975m in aerospace funding over five years from 2025 will be allocated to the Aerospace Technology Institute (ATI) program.

The Chancellor also shared an update on the GIGA, revealing that £390m will be allocated to expand UK-based supply chains for electricity networks and offshore wind sectors. Another £390m will support carbon capture, utilization, and storage, while £300m will enable the UK’s production of high-tech nuclear reactors fuel, known as HALEU.

Katherine Bennett, CEO of the High Value Manufacturing Catapult, praised the funding announcements, noting their positive impact on domestic life sciences, automotive, and aerospace sectors. She emphasized the role of innovation centers in driving industrial transformation across the UK.

Dan McGrail, chief executive at RenewableUK, highlighted the importance of GIGA funding in securing private investment in green manufacturing jobs. He also welcomed the allocation of nearly £400m to grow the offshore wind supply chain and electricity networks.

However, McGrail called for a wider package of reforms and investment to capitalize on growing investor confidence in the UK. He emphasized the need to seize new manufacturing and supply chain opportunities, especially in the global race to build new clean energy projects.

The UK government has faced calls to boost public investment in green projects to unlock private sector investment and meet climate targets. A cross-party group of Parliamentarians urged Chancellor Hunt to address ongoing underinvestment in the forthcoming Spring Budget.

The Carbon Capture and Storage Association, Make UK, and the Global Infrastructure Investor Association have also called for revenue support policies to enable carbon capture projects to reach a Final Investment Decision. They warned of the risks of missing out on major investment opportunities and falling short on emissions targets without urgent action.

The Treasury is considering industry calls to cut VAT on new electric vehicles and boost funding for energy efficiency programs. However, the focus is expected to be on identifying new revenue sources to deliver desired tax cuts ahead of the upcoming election.

In a new paper, Greenpeace warned of the risks of underinvestment in green infrastructure due to short-term fiscal concerns. The group urged a challenge to austerity logic, emphasizing the need for progressive tax reform to deliver a greener and fairer society.

If the government announces new tax increases to fund a reduction in income tax, it could present a challenge for Labour. The party has earmarked planned increases, such as an extension of the windfall tax on oil and gas companies, to fund new spending programs.

The deadline for entries for this year’s UK Green Business Awards has been extended, reflecting the growing importance of green initiatives and investments. With the UK’s commitment to green growth, the future looks promising for innovation and sustainability.

As Chancellor Jeremy Hunt unveils a groundbreaking funding boost for the Green Industries Growth Accelerator, it’s evident that the era of green technology is upon us. With millions invested to propel the UK into a leadership position in manufacturing and innovation, there’s never been a better time to explore the realm of green tech. The potential for growth and transformation in industries ranging from automotive to aerospace is immense, and now, you have the opportunity to be part of this revolution. Dive into our curated selection of cutting-edge green tech products, carefully chosen to complement the strides being made towards a brighter, more sustainable future. Explore, innovate, and be part of the change today.