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Business Secretary unveils £600 million for British aerospace - including greener air travel

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By Alice Padgett

Business Secretary Jonathan Reynolds has announced a £600 million package to back British aerospace as he returns to his old brief under a new prime minister.

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Mr Reynolds, who has been appointed as Business, Innovation, Science and Trade Secretary in Andy Burnham’s Cabinet, will unveil the funding at the Farnborough International Airshow.

It includes some £500 million for aerospace research and technology projects for greener air travel, and £100 million for a supply chain fund to help meet demand.

Airbus, Rolls-Royce, GKN Aerospace, Safran and the trade body ADS are among the partners for the supply chain fund.

Mr Reynolds said: “Aerospace is one of Britain’s great industrial success stories.

"Partnerships like this show the power of bringing business and innovation together to harness our strong manufacturing base and cutting-edge research to support skilled jobs right across the UK.”

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Porto, Portugal - June 13, 2026: British Airways Airbus A321-231 aircraft G-EUXG ascends steeply into clear blue sky after departing Porto airport
It includes some £500 million for aerospace research and technology projects . Picture: Alamy

This comes as Prime Minister Andy Burnham has told his Cabinet ministers to take a “hard look” at their departmental budgets as questions mount over how he will fund a string of major spending commitments.

The Prime Minister has announced plans worth more than £1 billion in his first 72 hours in office, including £340 million to tackle rough sleeping and an £850 million package aimed at cutting energy bills.

He is also expected to restore the £2 cap on bus fares, a move experts estimate could cost around £300 million a year.

Speaking at his first Cabinet meeting in Downing Street, Mr Burnham said ministers must find ways, both “big and small”, to ease pressure on household budgets.

“We need to be a cost-of-living Government,” he told his Cabinet. “Getting that cost of living down, looking at all possible ways of doing that.”