Autumn Budget 2024: Driving Innovation and local growth

Innovation, investment and market expansion for entrepreneurial growth

As the UK government outlines its long-term vision for economic recovery and growth in the wake of the autumn budget, significant reforms and strategies are being introduced to stimulate local economies and empower entrepreneurs. We explore the initiatives and funding commitments that will shape the landscape for businesses and foster a thriving entrepreneurial ecosystem.

Local growth funding reforms

The government will set out its long-term vision for local growth funding in Phase 2 of the Spending Review. The government is continuing to invest in programmes which are important to growth and provide stability for local leaders and investors.

Regional growth strategy

The government is setting out the next steps for delivering its strategy for regional growth, across investment, devolution and local growth funding reform – which will create good jobs and spread prosperity across the UK.

Future of Freeports and investment zones

The government is confirming funding for Investment Zones and Freeports across the UK, announcing the approval of the East Midlands Investment Zone to support advanced manufacturing and green industries, and confirming that five new customs sites will be designated in existing Freeports shortly. The government will also work to ensure the Freeports policy model aligns with the national Industrial Strategy.

Brand Scotland

Supporting Scottish trade and investment by providing £0.75 million to establish Brand Scotland, a programme run by the Scotland Office to promote Scottish investment opportunities and exports across the globe.

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Industrial strategy

The government’s green paper launch on its modern Industrial Strategy sets out eight growth-driving sectors, announcing that government will produce sector plans for each as part of its promise to help these sectors thrive.

The Budget confirms long-term support for growth-driving sectors ahead of the full modern Industrial Strategy’s publication in the Spring, including:

• Committing £975 million in R&D funding for the aerospace sector over five years. Further details will follow in Phase 2 of the Spending Review.
• Committing over £2 billion in R&D and Capital funding over five years to support the automotive sector, including the zero emissions vehicle manufacturing sector and supply chain. Further details will follow in Phase 2 of the spending Review.
• Up to £520 million for a new Life Sciences Innovative Manufacturing Fund to drive growth and build resilience for future health emergencies.
• Tax reliefs for the UK’s world-leading creative industries, which will provide £15 billion of support over the next five years.

UK export finance support for critical minerals

UK Export Finance will support companies supplying critical minerals to UK exporters in growth-driving sectors such as EV battery production, clean energy, aerospace and defence. This new support targets projects that secure critical minerals from overseas and will boost supply chain resilience in key manufacturing sectors.

Small business strategy

The government will bring forward a Small Business Strategy Command Paper in 2025.

This will set out the government’s vision for supporting small businesses, from boosting scale-ups to growing the co-operative economy, across key policy areas such as creating thriving high streets, making it easier to access finance, opening up overseas and domestic markets, building business capabilities and providing a strong business environment. The paper will complement the government’s forthcoming Industrial Strategy and Trade Strategy.

Made smarter

Funding for the Made Smarter Adoption programme will double to £16 million in 2025/26, supporting more small manufacturing businesses to adopt advanced digital technologies and enabling the programme to be expanded to all nine English regions.

East west rail consultation

East West Rail will connect Oxford, Milton Keynes and Cambridge and unlock land for housing and laboratories, supporting the wider Cambridge life sciences cluster The Budget will announce the East West Rail consultation, the next step in the project, which will be launched by the Secretary of State for Transport in November 2024.

Social impact investment vehicle

The government is announcing that work will begin to develop a social impact investment vehicle, led by the Chief Secretary to the Treasury, working with DCMS, to support the government to deliver its missions. This will bring together socially motivated investors, the voluntary sector and government to tackle complex social problems. This will be designed and developed through engagement with the sector, with further details to be announced at Phase 2 of the Spending Review.

Mineworkers’ pension scheme

The government will transfer the Investment Reserve Fund in the Mineworkers’ Pension Scheme to the scheme’s Trustees. This will be paid out as an additional pension to members of the scheme.

The government will also take forward a review of the existing surplus sharing arrangements.

Implementation of lifelong learning entitlement to amended timetable

The government will deliver the Lifelong Learning Entitlement (LLE), but will postpone its launch by one year. The LLE will launch in September 2026 for learners studying courses starting on or after 1 January 2027.
 

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