Securing Investment

Securing Investment

In the coming months, businesses will make decisions that will shape our country’s future for the next 20 years. In the last year, the Labour Government has earmarked almost a billion pounds for targeted investments in new technologies – the kinds of game changing seed investment that markets too often see as unviable or requiring too much long-term commitment. It is only through determined action that we can mobilise private and public investment behind pioneering advanced technologies and keep investing in the science, research and skills that underwrite them.

• The £750 million Strategic Investment Fund was created at Budget 2009 to invest in the UK’s
basic capabilities for industrial innovation, job creation and growth in a highly competitive global
economy. The Pre-Budget Report 2009 announced an additional £200 million.

• The Strategic Investment Fund is providing investments to support advanced industrial projects
of strategic importance to the UK across a range of sectors, but also geographically, to ensure
widespread benefits across the economy.

• This is not about national ownership of companies or direction of industries. Instead it has
identified areas where targeted intervention by government can unlock viable technological
development or help get good ideas off the drawing board.

• The Strategic Investment Fund is supporting:

- employment in the aerospace sector by contributing to £340 million of repayable launch
investment to Airbus for the development of the A350 XWB

- research and technology critical to the development of low carbon aircraft engine technology
with £45 million of investment

- the Nuclear Advanced Manufacturing Research Centre in South Yorkshire with £15 million of
funding

- the development and deployment of wave and tidal energy with nearly £10 million to support
Wave Hub in Cornwall

- an Industrial Biotechnology demonstrator for the chemicals sector at Wilton with £12 million

- new and emerging life sciences companies with £12 million for the Edinburgh BioQuarter

- a new national centre for composites in Bristol with £12 million of investment which will
support the rapid manufacture of high value composite structures such as aircraft wings,
automotive components and wind turbine blades

- next generation off shore wind blade development in the UK with £11.5 million of investment
at Narec in the North East, the largest test centre of its kind in the world.


The additional support going in during 2010/11 to secure the recovery, builds on the active approach taken over the last year:

• 22 million people have benefited from tax cuts that have raised real incomes at a critical time.

• Up to 500,000 jobs have been protected that might otherwise have been lost without the action that has been taken by the Labour Government in conjunction with the Bank of England.

• Over 160,000 businesses have deferred tax payments, helping them to stay afloat and keep people in work during the recession.

• More jobs, training, college and school places for young people – including commitment to creating 120,000 new jobs through the Future Jobs Fund; over 140,000 extra learners funded under the September Guarantee for school leavers ; and a guaranteed job offer, education or training place to all 18 to 24 year olds out of work for six months.

• The car scrappage scheme, where owners scrapping an old car receive £2000 off the price of a new car, has assisted with over 370,000 orders keeping the automotive industry on its feet.