The UK's car production sector is being backed by a huge £2.5billion programme which will accelerate the industry over the coming years and create thousands of jobs.
The UK auto sector has been boosted by a £2.5billion funding boost under the DRIVE35 project, the Government announced this morning.
The scheme will comprise new and improved funding competitions to support UK businesses as the country accelerates towards a zero emission future.
It will fund a wide range of projects to cut emissions across the sector, targeting high-volume manufacturing and gigafactories.
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The Government is backing the UK automotive sector with a £2.5billion investment
PA
In total, £2billion in funding will be available by 2030, with a further £500million boost for research and development to 2035.
This will coincide with the Government's current plans to ban the sale of new petrol and diesel cars by the end of the decade, and only allow zero emission vehicles to be sold from 2035.
The automotive industry is one of the UK's strongest sectors, and contributed £21.4billion in gross value added to the economy last year, in addition to supporting 132,000 jobs.
Jonathan Reynolds, Business and Trade Secretary, said the funding would help British carmakers "get to the front of the pack" to build a competitive electric vehicle supply chain.
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PASpeaking at the International Automotive Summit last month, the MP for Stalybridge and Hyde confirmed that the Government was supporting the automotive industry and giving it "flexibility".
Reynolds, who has been an MP since 2010, noted that Labour had already made progress in supporting the auto sector, as seen by the "landmark" trade deal with the United States.
He also highlighted how the Government was committed to lowering electricity prices, updating the Zero Emission Vehicle mandate and supporting UK jobs.
The Business and Trade Secretary said: "Economic growth is our number one priority, and by funding our world-leading auto sector, we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK."
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DRIVE35 will build on the success of the Automotive Transformation Fund (ATF) and the Advanced Propulsion Centre UK (APC) research and development competitions.
The two schemes have contributed more than £6billion of investment from the private sector, helping to create thousands of jobs in the process.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the dedicated automotive programme was evidence of the sector's importance to the economy.
He added: "Delivered as part of the Industrial Strategy, DRIVE35 has the potential to unlock investment and innovation in the UK, supporting jobs and creating wealth across the country.
"The importance of a long-term, cross-Government strategy with specific measures for automotive cannot be understated, given the challenges facing the sector amid geopolitical uncertainty and fierce global competition.
"This will encourage further investment in the UK’s growing zero-emission supply chain, safeguarding skilled jobs, building on the country's reputation as a world-leader for technology."
The DRIVE35 scheme was first introduced in Labour's Modern Industrial Strategy last month, through the Advanced Manufacturing Sector Plan.
The Department for Business and Trade today also announced over £300 million for specific auto manufacturing firms, including over £100million for Bolton from Astemo Ltd., and the West Midlands receiving £15million from Dana to produce parts for electric vehicles.