Summary of Accessible Benefits for FAC Members

Based on the Budget and accompanying policy papers, FAC members in the South East can access the following specific support mechanisms:

• 100% Funded Apprenticeships (SMEs): The government has abolished the 5% co-investment requirement for SMEs hiring apprentices under the age of 25. This means training for young aerospace engineers and technicians is now fully funded by the state, reducing the cost of hiring junior talent.

• 'Made Smarter' Expansion to the South East: The Made Smarter adoption programme, which provides matched funding and digital consultancy for manufacturers, is being rolled out to all English regions in 2025-26. This opens up grant funding for South East members to invest in digital twins, robotics, and sensors that was previously restricted to other regions.

• Export Finance for Services: UK Export Finance (UKEF) has introduced the "Early Project Services Guarantee." This is critical for the South East's design houses and consultancies, as it helps secure finance for the initial "scoping and design" phases of international contracts, ensuring payment before physical goods are even manufactured.



• Talent Retention (EMI Scheme): To help SMEs retain top engineers, the Enterprise Management Incentive (EMI) scheme limits have been doubled. Companies with up to 500 employees (previously 250) can now grant up to £6 million in share options, allowing FAC members to offer tax-efficient equity packages to senior staff.
  

The "Hidden" Surprise Benefit: The British Industrial Competitiveness Scheme (BICS)

The highlight benefit that was effectively "hidden" in the departmental detail—and directly answers FAC CEO Alan Fisher's concerns about high operational costs—is the British Industrial Competitiveness Scheme (BICS).

• What it is: A targeted scheme to cut electricity bills for eligible manufacturers in "frontier" sectors like aerospace and their supply chains (e.g., chemical processing, metals) by up to 25% (approx. £35-£40 per MWh).⁷
• Why it’s a surprise: It was launched as a consultation alongside the Budget rather than being a headline in the Chancellor's speech. While Alan Fisher noted that "energy costs remained extremely high" and felt there was a "lack of policy announcements" to lower them ⁹, this scheme is the government's specific technical mechanism to address that disparity.
• Action for Members: Although full implementation is slated for April 2027, the consultation determines eligibility rules now. FAC members undertaking energy-intensive processes (such as autoclaving, casting, or heat treatment) should engage immediately to ensure their specific SIC codes and processes are included in the eligibility criteria.¹⁰