Vince Cable unveils £125m manufacturing fund at CBI event
Business secretary tells CBI dinner of fund aimed at encouraging emerging industries to become globally competitive
Vince Cable, the business secretary, announced the creation of a £125m fund to boost growth in the manufacturing supply chain at the CBI’s Manufacturing Dinner last night.
Read Vince Cable's speech in full (pdf)
Press release: CBI reponds to Cable announcement
In pictures: Manufacturing Dinner and factory visits
Mr Cable told the event at the National Motorcycle Museum in Coventry that the Advanced Manufacturing Supply Chain Fund would help the UK emulate Germany, where a Mittelstand of mid-sized firms is a thriving section of the economy.
“The government is launching a new £125m challenge fund to focus on advanced manufacturing supply chains, improving and expanding those we already have so they become globally competitive and encouraging new suppliers to grow here, for example around emerging manufacturing industries such as low carbon technologies,” he said.
“The Advanced Manufacturing Supply Chain Fund is inviting proposals with the vision and impact to make a genuine difference. It will be flexible enough to respond to what is required, whether that is capital investment, R&D, or skills and training support – and we want to see bids from a range of high value manufacturing sectors.”
The business secretary added that larger companies would have a key role in the distribution of the fund.
He said: “The role of the big players at the top of manufacturing supply chains – the primes - will be critical. Successful bids will need to demonstrate they are responding to real demand, whether actual or potential.
“And they will need to have buy-in from prime manufacturers, so we know they are committed and that projects will make a real impact in terms of attracting new business and new jobs to the UK”
The £125m will be available to fund business needs such as capital investment, R&D and training, and applications will be invited from firms in a range of sectors.
The CBI director-general, John Cridland, who also spoke at the Manufacturing Dinner, welcomed the news. He said: "We welcome this new initiative which will help build UK supply chain capability and resilience. It will enhance our manufacturing competitiveness and build on strengths in advanced engineering, research and innovation."
Warren East, the CEO of ARM, was the third speaker at the motorcycle museum event – which followed a visit to factories in the West Midlands by Mr Cable and Mr Cridland.
Pictured above: Vince Cable, left, and John Cridland on a visit to the Bromford Industries factory
Download "Vince Cable's speech to manufacturing dinner" (86kb)