Announcing the publication of the new Combat Air Strategy at the Farnborough International Airshow, the Defence Secretary said he had taken action to strengthen the UK’s role as a global leader in the sector and to protect key skills across the UK industrial base.

He outlined the Strategy in front of the combat aircraft concept model which has been developed by UK industry in collaboration with the Ministry of Defence – being publicly unveiled for the first time, it acts as a powerful demonstration of the UK’s world leading technical capability and industrial expertise.

Defence Secretary Gavin Williamson said:

We have been a world leader in the combat air sector for a century, with an enviable array of skills and technology, and this Strategy makes clear that we are determined to make sure it stays that way. It shows our allies that we are open to working together to protect the skies in an increasingly threatening future – and this concept model is just a glimpse into what the future could look like.

British defence industry is a huge contributor to UK prosperity, creating thousands of jobs in a thriving advanced manufacturing sector, and generating a UK sovereign capability that is the best in the world.

Today’s news leaves industry, our military, the country, and our allies in no doubt that the UK will be flying high in the combat air sector as we move into the next generation.

For the last 100 years the UK combat air industrial sector has ensured the UK has been at the forefront of technological and engineering developments, delivering world leading capability to the RAF and our allies. This Strategy will ensure the UK continues to maintain this leading position.

The Strategy outlines the way in which the UK will acquire future Combat Air capabilities to maximise the overall value the UK derives from the sector. The framework will balance military capability, international influence, and economic and prosperity benefit along with the overall cost.

It reinforces the commitment in the 2015 Strategic Defence and Security Review to deliver the Future Combat Air System Technology Initiative (FCAS TI). The Government, in partnership with industry, is taking steps to grow existing world-leading design engineering capacity and skills, ensuring that the UK continues to be at the cutting edge of combat air technology.

The concept aircraft has been put together by British firms including BAE Systems, Leonardo, MBDA and Rolls-Royce, which have joined together with the RAF Rapid Capabilities Office to form ‘Team Tempest’ to pursue the opportunity.

Team Tempest brings together the UK’s world leading industry and sovereign capabilities across future combat air’s four key technology areas: advanced combat air systems and integration (BAE Systems); advanced power and propulsion systems (Rolls-Royce); advanced sensors, electronics and avionics (Leonardo) and advanced weapon systems (MBDA).

The MOD will now set up a dedicated team to deliver the combat air acquisition programme. They will deliver a business case by the end of the year, and have initial conclusions on international partners by next summer – with engagement with potential partners beginning immediately.

Early decisions around how to acquire the capability will be confirmed by the end of 2020, before final investment decisions are made by 2025. The aim is then for a next generation platform to have operational capability by 2035.

The UK is already a world-leader in the combat air sector, with a mix of skills and technologies unique in Europe, supporting over 18,000 highly skilled jobs. The sector delivers a turnover in excess of £6bn a year and has made up over 80% of defence exports from the UK over the last ten years.

Investment in combat air technology, combined with the strengths of UK industry, has resulted in the UK being the only Tier 1 partner with the US on the F-35 Lightning II programme, with British industry delivering 15% by value of every F-35 built. The UK has been able to help define the operational capabilities of the aircraft, while reinforcing UK industrial capability, critical skills and supporting wider economic prosperity.

The UK also continues to lead the way in combat air power as one of the four partner nations in the Eurofighter Typhoon programme. With more than 20,000 flying hours on deployed operations to date, the Typhoon delivers world leading capability, unparalleled reliability and proven interoperability with our allies. The MOD will continue to invest in the Typhoon for decades to come, with the best technologies being carried forward on to next-generation systems.

The F-35 Lightning II and the Typhoon are two complementary multi-role combat aircraft that will make up the RAF’s combat air fleet, placing the UK at the forefront of combat air technology – with the Typhoon expected to remain in UK service until at least 2040.

Chief of the Air Staff Air Chief Marshal Sir Stephen Hillier, said:

The Combat Air Strategy will bring together the best of our people, industry and international partners to support the RAF lift-off into the next century of air power. Team Tempest demonstrates our commitment in ensuring that we continue to build our capabilities, draw upon our experience and history to bring forward a compelling vision for the next generation fighter jet. In last 100 years, the RAF has led the way and today’s announcement is a clear demonstration of what lies ahead.

Charles Woodburn, Chief Executive of BAE Systems, said:

The UK’s combat air capability, built by generations of committed and highly skilled people through a century long partnership between the RAF and industry, is admired the world over. The UK Government’s Combat Air Strategy is a powerful statement of intent to invest in next generation combat air systems. We’re proud to play a key role in this important programme, with our world leading technology, capability and skills, which will contribute to the UK’s defence and prosperity for decades to come.

Warren East, Chief Executive Officer of Rolls-Royce, said:

As the UK’s long-term power and propulsion partner, we warmly welcome the Government’s announcement of a Combat Air Strategy. The UK’s capability in combat air power and propulsion is at a critical point and this long-term commitment from Government will allow us to protect the expertise and key skills that are vital to retaining sovereign capability. It ensures that we are able to develop and deliver the advanced technologies that will be required in future combat air systems to help ensure our national security.

Norman Bone, Chairman and Managing Director of Leonardo in the UK, said:

As Britain’s national champion for advanced defence electronics, we are proud to be a part of Team Tempest. Work we have conducted under research and development programmes such as FOAS and FCAS has significantly advanced our thinking with regards to the complex electronics required for future air combat scenarios and we stand ready to support the future needs of the Royal Air Force. We are excited about the work that’s already been done, and the work still to do, on the FCAS TI programme and are all set for these activities to feed into the Typhoon successor programme.

Chris Allam, Managing Director of MBDA UK, said:

MBDA is proud to be providing its complex weapons expertise to the Team Tempest partnership. Delivering effects is central to next generation combat air systems, and we will continue to invest in developing our world leading complex weapons and novel technologies to ensure the UK retains sovereign operational advantage and freedom of action in Combat Air. The strong partnership (through the Portfolio Management Agreement) between MBDA and the MoD has already changed the paradigm for complex weapons developments in the UK, delivered world leading capabilities to the UK Armed Forces and provided savings in terms of both time and money. The Team Tempest partnership has the potential to do the same for Combat Air.

The UK’s world-leading aerospace sector will be propelled into a new era of cleaner, greener flight through industry and government investment, the Business and Energy Secretary announced today at the 2018 Farnborough International Airshow.

From the total investment, £255 million – supported by the Aerospace Technology Institute (ATI) and UK Research & Innovation (UKRI) – will go towards 18 new research and technology projects, including the development of cleaner and greener hybrid aircraft. To support small and medium-sized companies, £68 million of the funding will be made available to increase research and development opportunities, with £20 million to drive improvements in long-term productivity across the sector.

The projects will not only help maintain the UK’s existing strengths in aerospace but also position the UK as a world leader for some of the most technologically advanced aircraft that will transform the face of aviation including electric aircraft, hybrid-electric propulsion systems, and future materials for aircraft manufacturing.

A major beneficiary of the latest research and development funding is the revolutionary E-Fan X project. The project brings together Airbus, Rolls-Royce and Siemens to develop a flying electrical demonstrator which will form the foundation for future electrical aircraft and help the aerospace sector to manufacture cleaner, quieter aircraft and grow the industry sustainably. Rolls-Royce’s ACCEL project will also lead a UK programme to accelerate the electrification of flight which will contribute to the UK’s aim to cut emissions through its Clean Growth Strategy.

Business and Energy Secretary Greg Clark said:

The UK has a rich heritage in civil aviation as the home of the jet engine and the wings factory of the world. Technology is driving revolutionary changes in aviation that have not been seen since the 1970s and today’s investment is foundational to the future of commercial aviation and ensuring the UK remains at the cutting-edge of the sector. This revolution in civil aerospace will bring significant benefits to UK industry, passengers and the environment.

Through our modern Industrial Strategy, we are working with industry to lead the world as we embark on this journey into the new age of air travel.

This funding will also support a number of projects on the next generation UltraFan® aero engine, led by Rolls-Royce, which will contribute to their biggest shift in engine architecture since the 1970s. It will transform flight, setting new benchmarks in fuel efficiency, CO2 reductions and significant cut backs in engine noise.

Aviation Minister Baroness Sugg said:

The development of quicker, quieter and cleaner aircraft will transform the UK’s transport market and open up new and more sustainable ways for passengers to travel between our cities and regions and across the globe. Developing innovation, technology and skills is a core part of the government’s Aviation Strategy and this funding will help us to ensure that the UK aviation sector continues to be a world leader in this area.

Backing our world-leading aerospace sector, the Business and Energy Secretary also announced the start of formal negotiations for an Industrial Strategy sector deal that will further increase business investment in the UK, with discussions expected to conclude before the end of the year. The deal will:

• explore investment opportunities around electrification and high-value design
• raise productivity levels in the supply chain
• and boost skill levels in the sector

The latest wave of projects to win the competitive funding underlines the significant importance of the £3.9 billion joint research and development funding commitment in the sector as part of the Industrial Strategy.

The government also welcomed the completion of Bombardier and Airbus’ Joint Venture; a partnership that will support the development and manufacture of structures for the A220 jet at the Bombardier facility in Belfast.

Further information about BEIS’ Farnborough commitments.

Research and development investment

Projects supported by joint government and industry investment include:

Airbus, Rolls-Royce, Siemens

• E-FAN X (ELECTRIFICATION), £58 million project

  A partnership between Airbus, Rolls-Royce and Siemens to develop a flight demonstrator for hybrid-electric propulsion for commercial aircraft. Hybrid-electric technology will deliver improved environmental performance that is cleaner, quieter and introduce re-evaluations of the entire design of aircraft.

Rolls-Royce

• series of projects on ULTRAFAN®, and ACCEL, worth a total of £70 million

  4 projects on engine technologies for UltraFan involving multiple partners including universities and smaller companies. A new generation of aircraft engine that aims to transform flight, setting new benchmarks in efficiency, environmental performance and precision engineering. ACCEL is intended to accelerate the adoption of electrical technology in aviation through the design build and flight test of a high performance electric powertrain.

Bombardier

• Competitive Composite Manufacturing Process (CoCoMaP), FANTASTIC (Nacelle) and OptiComp (Wing project), £32 million project

  3 research projects exploring more efficient manufacturing processes, new technology for engine covers (nacelles) and the application of composite material to large aerospace structures, such as wings and fuselage. All 3 projects will be led by Bombardier Belfast (Shorts).

GKN

Airbus

National Composite Centre Operation Limited

• £44 million for 3 projects

  3 projects with National Composite Centre, part of High Value Manufacturing Catapult, to develop new, more efficient ways of producing large composite aerostructures. The research will explore the use of new composite materials as well as the manufacturing process.

University/Research Organisations projects – total £26 million for 3 projects

• University of Oxford

  Infrastructure for the University of Oxford Osney Thermo-fluids Laboratory (OSNEY Upgrade). The Oxford Thermofluids Institute is part of Oxford University’s strategic investment in the UK’s science base. The laboratory is a global centre of excellence for turbomachinery research which has made significant contributions to the technology of jet engines over the last 3 decades. This grant will be used to achieve a step change in capability to measure and research the cooling performance and hot stage technologies essential for the operation of high pressure (HP) turbine stages of Large Civil Engines.

• University of Sheffield

  PERFORM (Disruptive Textile Technology for Aerospace Applications): Perform is a project with the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC), part of the High Value Manufacturing Catapult. The research will develop new composite material and efficient manufacturing processes.

• The Welding Institute Limited

  OAAM (Open Architecture Additive Manufacturing): the Welding Institute, an engineering research and technology organisation, is taking the lead in the Open Architecture Additive Manufacturing (OAAM) project to demonstrate the ability to manufacture large metallic components via Additive Manufacturing (AM) (also known as 3D printing) for the benefit of UK Aerospace.

Government and industry support for SMEs

£68 million joint industry and government investment for new research and development opportunities targeted to support small and medium-sized businesses. An open competition supported by UKRI will back SMEs to carry out new research on high risk, high reward solutions that will help UK companies grow their capability for the long-term.

There will also be further rounds of the successful National Aerospace Technology Exploitation Programme to help SMEs develop new technologies. SMEs will also be able to increase their productivity through a new improvement programme that will increase their ability to win new work with new and existing customers. A new partnership between the UK and Sweden will also see the 2 countries collaborate on technological research.

Defence Enterprise Export Partnership

The Defence Enterprise Export Partnership (DEEP) is a joint government, industry and academic initiative led by the Defence Growth Partnership (DGP) to ensure that the UK generates the skilled personnel able to lead successful international defence export campaigns. The initiative will support the Industrial Strategy by driving export-led growth and ensuring that the UK retains vital skills.

I am delighted to be here today. First of all, I want to congratulate Farnborough on this brand new exhibition hall. This is an outstanding building – and it is befitting for a world-leading air-show. A world-leading industry. And world-leading innovation, talent and skills.

Every day – in every part of the world – people are flying in planes powered by British built engines. They take off and land in planes with wings built in Wales and Northern Ireland. And our military is supported by some of the most advanced British built unmanned vehicles.

Our capability in some of the most complex parts of aircraft – including wings, engines and advanced systems – is first rate. Outside of the US, Rolls-Royce is the only company with real capability to design and build large civil aerospace engines.

This expertise is nothing new. It is built on a proud tradition of innovative aerospace technology – from Farnborough, Brooklands, Bristol, Broughton, Derby, Belfast, Southampton, Yeovil, Prestwick – to name but a few. Nowhere do we recognise that terrific history more this year than in our celebrations for the 100th anniversary of the RAF.

We can all feel incredibly proud of our position as a leading aerospace nation. By working closely together, government and industry have ensured we remain at the forefront of civil aviation and that our air power is second to none. Today I want us to build on that, and ensure not only that we retain our prominence, but that in an increasingly competitive industry we make the most of the opportunities that lie ahead.

Opportunities that arise not only from the measures I have set out in our comprehensive and ambitious proposal for our future relationship with the EU – but in our plans for an open, outward facing Britain that acts as a global champion for free trade.

On Thursday, the government published its White Paper detailing our plans for an economic and security partnership with the EU.

Our proposal sets out the right deal for the UK – honouring the democratic decision of the British people, protecting the integrity of our precious union, supporting growth, maintaining security and safeguarding British jobs.

We will take back control of our borders, our laws and our money. But we will do so in a way that is good for business and good for our future prosperity.

We know from our discussions with you, and other industries, how friction at the border would not just jeopardise the uniquely integrated supply chains and just-in-time processes on which millions of jobs and livelihoods depend – but how divergence in regulations could result in complex and expensive multiple tests for different markets.

Companies such as Rolls Royce export 80% of their products. Parts for other products – such as Airbus wings – can have multiple journeys before finally being assembled and sold around the world.

We know too just how vital precision engineering is in aerospace – where the “error” rate for parts and their performance must be practically zero – and that it is the harmonisation of regulatory standards that has been such an important factor in air safety and the astonishing reduction of deaths on commercial flights.

The frictionless free trade of goods, an independent trade policy, the avoidance of a hard border between Northern Ireland and Ireland and between Northern Ireland and Great Britain – these are conditions we seek. To do anything else risks the integrity of the United Kingdom, reneges on the Belfast Agreement and simply will not deliver for Britain as a global trading nation.

So at the heart of our proposal is the creation of UK-EU free trade area for goods, supported by an up-front commitment to ongoing harmonisation with EU rules on goods and agricultural products.

A new business friendly customs model – a facilitated customs arrangement – which would operate as if we were a combined customs territory, removing the need for customs checks and controls between the UK and the EU, while at the same time allowing us to set our own tariffs for other countries outside of the EU.

The partnership would be underpinned by reciprocal commitments to ensure open and fair trade and a joint institutional framework to ensure consistent interpretation of the agreement and the resolution of disputes.

And we will also, as I set out in my Mansion House speech, explore with the EU on what terms the UK could remain part of EU agencies such as those that are critical for the aerospace chemicals and medicines industries: the European Aviation Safety Agency, the European Chemicals Agency, and the European Medicines Agency.

Because the UK has been a key contributor of expertise to these agencies – and it is our manufactured products circulating throughout Europe and around the world keeping people safe, flying safely, providing essential medicines, enabling everyday activities.

What we are proposing is a solution that respects the referendum result and puts forward what is best for British industry in line with our modern industrial strategy, and what is best for our global trading ambitions.

We are leaving the European Union, and forging a new future for our country. And as we do so, I want to ensure that the UK remains one of the best places in the world for aerospace companies to do business.

To continue as world leaders in innovation. To make the most of the huge opportunities that exist.

Because this is an incredibly exciting time for aerospace. Not only is there huge growth potential, but many of the developments taking place have the potential to transform the way we fly.

Other countries around the world are racing to develop their industries – and respond to the demand for cleaner, greener aircraft and technological advances such as automation, and unmanned air systems.

The UK already has a leading edge. We are home to some of the biggest names in the industry – and our small and medium sized companies demonstrate phenomenal skill, energy and innovation.

Many of those companies are here at Farnborough.

Poeton, who apply ceramic and metallic coatings to aerospace components to protect them from melting, corroding or wearing.

Produmax, whose critical parts can be found in aeroplanes such as Boeing’s Dreamliner – where they play an essential role moving wing flaps. And Aeromet, whose highly complex alloy castings are used in the structural components and casings in aircraft.

But I want us to do more. Already we are backing industry through our £1.9 billion investment for aerospace research, the Industrial Strategy Challenge Fund and our commitment to a third runway at Heathrow. We are also today revealing the UK’s first spaceport – in Sutherland Scotland – which will see vertically launched space rockets and satellites take off from the site.

But today I want to announce a series of further measures to boost British aerospace companies – large and small, up and down the country – and ensure that Britain remains at the cutting edge of the industry.

Along with industry we are jointly providing £343 million pounds of investment for research and development projects and to boost productivity. From developing the most technologically advanced aircraft, creating newer more efficient engines, to the manufacture of cleaner, quieter aircraft that will help cut emissions – this funding will support some of the most innovative projects being advanced today.

This includes £255 million of joint investment research and development projects supported by the Aerospace Technology Institute and UKRI. This will fund 18 projects, involving 20 companies, including 13 small and medium sized businesses, and 12 research organisations and universities spread across the breadth of the UK.

It includes £68.2 million of joint funding with industry for R&D, specifically targeting small and medium sized businesses to help them increase their competitiveness. And a further £20 million of Government and industry match funding will go towards a productivity improvement programme.

Some of the projects this money will support are exploring truly exciting aviation developments, such as the electrification of flight, which could lead towards the cleaner, greener air power of the future. I want Britain to be at the forefront of such innovation.

Building on this, we will start working with industry on a potential Aerospace Sector Deal – capitalising on our work together to tackle barriers to growth, increase productivity and competitiveness. In this, we will look to you to demonstrate how the aerospace sector can further support the industrial strategy’s Grand Challenges, regional prosperity and the delivery of the government’s skills priorities. We will also seek to embed a Women in Aviation and Aerospace Charter, to build a more balanced and fair industry for women.

Finally, today, I want to announce the publication of the UK’s Combat Air Strategy – which confirms our commitment to maintaining our world-class air power capabilities, and will boost an industry which generates billions in revenue for our economy and supports thousands of jobs in every part of the UK.

We will invest in new technologies, support cutting edge innovation, collaborate internationally and initiate the programme which will deliver the next generation capability. And crucially, we will work in partnership with industry to achieve this. So today I can announce that the government will join with BAE Systems, Leonardo, MBDA and Rolls Royce to fund the next phase of the Future Combat Air System Technology Initiative through a ground-breaking partnership known as ‘Team Tempest.’

This will deliver over £2 billion pounds of investment up to 2025, and help secure the long-term future of our Combat Air industry as we lay the groundwork for the Typhoon successor programme.

Taken together, these measures amount to a significant boost for industry, promoting jobs, innovation and skills.

Elsewhere we have seen just what can be achieved when government and industry work together. The successful collaboration between Bombardier and Airbus on the A220 was originally supported by over £100 million pounds of investment from the UK. This will sustain jobs in Northern Ireland well into the future, and I was pleased to hear that JetBlue will be acquiring at least 60 of the aircraft, which could deliver billions to the UK economy.

So just as government will back you, I want you to work with us – particularly through organisations such as the Aerospace Growth Partnership.

Let us work together to build a leading aerospace nation.

A nation where, post Brexit, we are considered the best place in the world for the aerospace industry to base its business.

A nation more innovative than anywhere else in the world, where we nurture the next generation of designers, innovators and engineers.

Last week we saw the spectacular RAF flypast over Buckingham Palace – a demonstration of our impressive historic RAF planes – alongside those that use some of the most advanced technology in the world.

It is a history of aviation we can all be proud of. Together, along with this proud history, I want to ensure that we can have a bright and proud future.