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British Business Bank progresses plans to develop a £100m aerospace supply chain fund with UK Government

Press release 21 July 2026

  • Proposed fund will help strengthen the aerospace supply chain, giving high potential UK suppliers the capital they need to scale, invest and compete
  • Bringing together public and private sector investment to support a strategically important sector

Today the British Business Bank has confirmed that work is progressing with the UK Government and key aerospace companies including Airbus, GKN Aerospace, Rolls-Royce and the trade body ADS, towards a proposed £100m aerospace supply chain fund to support UK suppliers and strengthen manufacturing capability across the sector.

The proposed fund will help strengthen the aerospace supply chain by giving high potential UK suppliers the capital they need to scale, invest and compete while preparing for future aircraft programmes. By improving access to structured capital, the debt fund will help strengthen the UK aerospace supply chain, support increased output and position UK firms to compete for future opportunities.

The Government and the British Business Bank are continuing to work with the aerospace industry to develop the fund structure, high-level investment criteria and delivery route. Further detail will be provided once the proposition is sufficiently developed.

The proposal supports the Government’s Industrial Strategy and the Aerospace Growth Partnership’s ambition to strengthen the UK aerospace supply chain. By backing this fast-growing priority sector, the Bank is making its capital available to help innovative UK companies secure the scale-up capital they need to grow, expand and win future work.
Louis Taylor, CEO, British Business Bank said:

The continued success of the UK’s aerospace sector depends on the capacity, resilience and competitiveness of the supply chain that sits behind it.

This fund will help strengthen the aerospace supply chain by giving high potential UK suppliers the capital they need to scale, invest and compete for future aircraft work.

By bringing together public and private sector investment, we can support a strategically important sector, back high-value manufacturing jobs and help more UK businesses play a larger role in global aerospace supply chains.

Further Information

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Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

In 2025/26 1 , the Bank supported UK smaller businesses to access £9.4bn of finance, made up of £1.3bn of public funding, £4.3bn of private capital crowded in by the Bank and £3.7bn of lending the Bank guaranteed. The funding benefited 38,000 UK businesses, including around 30,000 businesses the Bank had not previously helped to fund.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.

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