This includes things like biotech, robotic systems and driverless cars.
Making his first and final Spring Budget Statement, Hammond also announced that he is allocating £300 million of funding to support the “brightest and the best” research talent, including support for 1,000 new PhD places and fellowships, focused on STEM subjects.
Other announcements included new ways to protect consumers, such as fining companies that mistreat consumers, a new strategy to make the UK a world leader in 5G technology, and introducing “T-Levels” for technical students aged 16-to-19.
“We will increase by over 50% the number of hours training for 16-19-year-old technical students, including a high-quality three-month work placement for every student, so when they qualify, they are genuinely work-ready,” he said.
“Once this programme is fully rolled out, we will be investing an additional £500m a year in our 16-19 year olds.
“And to encourage and support the best of them to go on to advanced technical study, we will offer maintenance loans for those undertaking higher level technical qualifications at the new Institutes of Technology and National Colleges. Just as we do for those attending University.”
The reaction:
Stephen Dyson, head of Industry 4.0 at Proto Labs, said that the introduction of tailored, technical alternative qualifications to A-levels is a "welcome initiative" and "long overdue".
"By providing the next generation with dedicated career options and the ability to engage in bespoke technical training courses, Britain is better positioned to take serious action towards plugging the country’s skills shortage," he said.
"The Fourth Industrial Revolution brings huge benefits to the economy, equally it requires the technically adept young workers of the future to make it happen."
MTA chief James Selka said the MTA is pleased to see some of the announcements in today’s Budget reflecting some of the positive measures outlined in the Industrial Strategy Green Paper.
"Manufacturers will welcome the commitment of £740m to fund digital infrastructure," he said. "This investment will play an integral part in switching them on to Industry 4.0 based technologies and further automating their businesses. We need fast reliable connectivity throughout the UK to power this revolution and to encourage investment in new technologies.
"It is encouraging to see the government thinking about the skills gap in technology led sectors, with funding being made available for mid-career upskilling but more needs to be done to address the massive challenges that companies face in helping their workforces to master technological change."
Terry Scuoler, chief executive of EEF, said: “While this Budget doesn’t have all the answers to our future growth challenges, the evolution of the R&D tax credit, action on digital infrastructure and regional road networks, together with additional investment in technical skills and lifelong learning is a solid foundation on which future statements must build."
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The automotive industry is investing significantly in new technology to address the issues of air quality so we look forward to working with government to encourage the uptake of the latest, low emission vehicles regardless of fuel type.
“Measures to reduce congestion will help as will funding announcements for the design and development of battery technology. The UK is Europe’s number one electric vehicle market but consistent and long term government support is essential if we are to retain this position.
“UK Automotive plays a critical role in the country’s economy, but future success will depend upon maintaining competitiveness. It’s disappointing, therefore, that the chancellor hasn’t prioritised additional funding for supply chain development, nor addressed the flaw in business rates that disincentivises investment in plant and machinery.
“On a more positive note, the focus on technical education is welcome as we seek to fill the 5,000 vacancies that exists in our sector and invest in skills to improve productivity still further.”
Tim Thomas, head of employment & skills policy at EEF, added that the proposals for technical education is welcome.
“This is a welcome first step towards finally putting technical and academic education on a truly equal footing," he said. "It ticks all the right boxes in terms of the emphasis on parity of esteem and the need to radically simplify and streamline the current system of qualifications which is overly complex and misunderstood by students, teachers and employers.
“Government must now ensure this is truly new funding to the skills system and that the technical qualifications which result are designed and demanded exclusively by employers of all sizes."
