UK Government Unveils £250 Million Boost to Power the Future of Green Aerospace Innovation

Image Credit: ZeroAvia

At the 2025 Paris Air Show, UK Industry Minister Sarah Jones unveiled a significant funding boost for sustainable aviation. The UK government, in partnership with industry leaders, will channel more than £250 million into green aerospace initiatives. These projects include the deployment of advanced technologies, such as Laser Beam Powder Bed Fusion Additive Manufacturing, which is being explored for its potential in large-scale aerostructure production, gas turbines, and even hydrogen-powered flight.

“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,” stated Jones. “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.”

The announcement was well-timed. According to new data from ADS, the UK’s aerospace trade association, the sector added £13.6 billion to the national economy last year. That figure represents an almost 50 per cent increase since 2014. It also highlights the sector’s significant role as a major employer, directly supporting approximately 100,000 jobs nationwide.

While attending the air show, Jones visited the UK pavilion, where she met with a range of British exhibitors. She later sat down with senior representatives from major aerospace players, including Airbus, Rolls-Royce, and GKN. These meetings focused on strategies to attract more global investment into British aerospace, enhance the UK’s research and development profile internationally, and explore how government support can help scale local manufacturing and operational capacity.

One recurring theme was the importance of smaller businesses in this ecosystem. Since its launch in 2013, the Aerospace Technology Institute (ATI) Programme has supported over 300 small and medium-sized UK firms. In the latest funding round alone, nineteen of these businesses committed over £22.8 million to innovation.

The ATI Programme remains a cornerstone of the country’s aerospace innovation strategy. Between 2013 and 2030, the combined investment from industry and government is expected to exceed £5 billion. The focus is on transformational aircraft technologies that not only safeguard and create jobs but also push the sector toward greener outcomes.

The momentum is already visible. In 2024, the UK aerospace industry recorded an annual turnover of £34 billion. Business spending on research and development hit a record high of £1.9 billion. Much of this investment was directed towards sustainable aviation technologies and modern manufacturing methods to increase production capacity within the UK.

“It’s terrific to see ATI funding allocated to projects like our ZeroE Development Centre (ZEDC) that will be built at Airbus Filton, and for DecSAM [Digitally Enabled Competitive and Sustainable Additive Manufacturing], which builds on the industry’s Additive Manufacturing capabilities,” stated Airbus UK Chairman John Harrison.

“It’s initiatives like these that are absolutely critical to accelerating our decarbonisation journey and advancing sustainable, cutting-edge manufacturing. The continued ATI funding provides the UK aerospace industry with the confidence and stability it needs to fuel innovation.” The complete list of newly announced investments can be found here.

“Today’s funding announcement, including our dedicated small and medium-sized company grants, supports critical world-leading research – vital to ensuring UK aerospace companies continue to provide great jobs and growth in future whilst delivering on our ambitious environmental goals,” stated Paul Adams, Aerospace Technology Institute Chief Innovation Officer. “This is a huge vote of confidence in UK aerospace and in British aerospace companies.”