Last week, the publication of the latest UK GDP figures by the Office for National Statistics showed, as expected, the economy is in recession after a record contraction of more than 20 per cent in Q2 following a smaller decline in Q1.
Meanwhile, the GDP figure for June showed the beginnings of a recovery in parts of the economy, with more than eight per cent growth as restrictions on commercial and social activity began to lift.
It is clear that some sectors are now set to experience a slower recovery than others. In particular, a full recovery in the numbers of international air travellers to pre-crisis levels is expected to take several years to achieve.
As we look towards the Government’s expected Spending Review and Budget this autumn, ADS is communicating our priorities to all levels of Government on the support our industries require to safeguard our capabilities and capacity in the coming months before growth eventually returns.
In July, ADS Chief Executive Paul Everitt wrote to Chancellor Rishi Sunak, to set out our priorities to support business through the crisis.
To ensure a rapid recovery and lay the foundations for long-term, sustainable growth, ADS is calling on the Government to:
- Establish a dedicated long-term supply chain investment fund to support the ability of the UK’s small and medium sized businesses to compete in global markets.
- Boost investment in aerospace innovation to deliver on the UK’s ‘jet-zero’ ambitions, by doubling funding for the Aerospace Technology Institute and front-load funding for technology projects.
- Support UK prosperity by maximising the power of procurement and providing attractive conditions for investment
- Provide targeted resources for strengthened industrial engagement for the UK’s security and resilience sector to unlock its full growth potential.
- Ensure direct support is provided to protect jobs and retain skills in sectors where employment is worst hit, and with the flexibility employers need to avoid damaging redundancies.
In August, ADS has also made a submission to the R&D Survey carried out by the Department for Business, Energy and Industrial Strategy (BEIS), setting out detailed priorities for R&D investment in the coming months and years.