Lord Mandelson, Secretary of State for Business, Innovation and Skills has announced a £3million investment in UK technology firms, as well as a £340million investment in the development of a new Airbus.
The investments form part of the Governments strategy ‘Building Britain’s Future,’ which includes the launch of several funds including the Capital for Enterprise Fund and the Strategic Investment fund, which is aimed at increasing Advanced Manufacturing, to keep the UK ahead of the competition.
The £75milion Capital for Enterprise fund was launched in January, to help growing companies’ access finance. The fund includes £50 million from the government, as well as £30 million from UK banks, which is managed by Octopus Investments.
The £3million investment includes £1million to IT systems business Vamosa, as well as £2million to KeTech, who provide communication software to rail companies, as well as the emergency services and construction businesses.
KeTech’s CEO, John Kearney, explains that he wrote to Lord Mandelson after having difficulty securing finance;
“Since the current economic crisis began, the lack of available credit, even to viable businesses such as KeTech, has significantly impaired our ability to keep growing. As a result, we turned to the Government for help.
“I am therefore delighted that the Octopus Capital for Enterprise Fund is injecting much-needed capital into KeTech. This will play a critical role in enabling us to secure profitable new contracts which regrettably, until now, we have been forced to turn away.”
The £340million investment for Airbus will aid the development of the new A350 XWB and ensure that Britain retains its position as a world leader in wing, landing gear and fuel integration systems technologies
The investment which is drawn partially from the Governments £750million strategic investment fund, will also secure more than 1,200 jobs within Airbus across Filton and Broughton sites as well over 5,000 within the supply chain across the UK.
Business Secretary Lord Mandelson said;
“This agreement is excellent news for the UK aerospace sector and for the thousands of British workers within Airbus and its UK-based supply chain”.
“The UK’s aerospace industry is world-class and capable of competing successfully with companies across the world. We recognise the vital role Airbus, and its supply chain, play in the UK.
“Aerospace is a sector that we are rightly proud of in the UK. It stimulates innovation across industry, demonstrates our capability to work with the most advanced technologies, and provides high-quality, highly skilled employment. It is a sector at the heart of our advanced manufacturing strategy.”
Click here to read more about the Government’s campaign ‘Building Britain’s Future.’