In today’s Spending Review, Chancellor Rachel Reeves announced £22bn of annual research and development (R&D) funding, in an effort to help “back our innovators.”

Reeves cited vehicle production as a key driver of innovation in the UK

The chancellor also announced £1.2bn annually for training and upskilling, including funding for apprenticeships.

Mike Hawes, chief executive of the Society for Motor Manufacturers and Traders (SMMT), said: “The automotive industry recognises the pressure on the public purse and the need to divert funding to defence and growth.

“Automotive can deliver that growth but it depends on both competitive conditions and consumer confidence. Some support for EVs has been made available, but more substantive measures to incentivise private consumer demand are still needed if world leading targets are to be met. 

The Government has already made great efforts to support a critical industry facing significant geopolitical challenges but without market-making interventions, that world-leading pace of transition may need to be reviewed.”

This came after the SMMT called for increased upskilling funding, reporting that 81% of workers in the low-volume vehicle manufacturing industry alone requiring upskilling by 2030.