£1bn support package for the aerospace industry

The Government has outlined a £1bn support package for the aerospace industry that will focus on increasing the energy and fuel efficiency of aircrafts.

In addition to the Government fund, industry will also pledge up to £1bn to create an institute, known as the UK Aerospace Technology Institute (ATI), which will be used to develop aircrafts that are "quieter and more energy-efficient".

Spread over a seven year period, the funding aims to boost the industry and establish the UK as the world's favoured supplier of aviation technology.

Secretary of State for Business, Innovation and Skills, Vince Cable, said: "A step change in technology is needed if these aircraft are going to deliver the improvements in efficiency and environmental performance needed to make air travel sustainable".