Pioneering aviation firm Vertical could send jobs abroad as Government dithers over subsidies

See more This is Money on Google - save us as a Preferred Source Updated: 03:02 EDT, 20 July 2026 An innovative British aviation business could shift manufacturing abroad as the Government dithers over subsidies, in what would be a major blow to jobs and innovation.Vertical Aerospace – Europe’s main contender in the global race to develop flying taxis – is planning to build new facilities including a battery ‘gigafactory’ as it ramps up production.But the company is asking for financial incentives from the Government for the plan, which could deliver two to three thousand jobs and thousands more in the supply chain.Without them it could be lured overseas, with Germany and Spain understood to have each offered tens of millions of pounds. Vertical Aerospace is eyeing a move to Germany or Spain if it fails to secure subsidiesA report commissioned by Vertical last year found that the company could generate nearly £9bn in annual revenue and become one of the UK’s ‘most significant manufacturing businesses’ by 2035.Yet that could be under threat, with insiders frustrated that UK officials appear to be dragging their feet over what would be a relatively small sum for Britain to find in order to secure the future of a cutting-edge industry.Vertical said discussions with the Government were continuing. The situation echoes – on a smaller scale – engine maker Rolls-Royce’s attempt to persuade the Government to back its effort to re-enter the market for narrow-body jet engines, or face seeing jobs go abroad.Vertical is also preparing to conduct the first-ever public demonstration flight of a flying taxi at the Farnborough Airshow, known in the industry as an electric vertical take-off and landing (eVTOL) aircraft. The model, known as Valo, was last week flown – in stages – from its Cotswolds base to Farnborough.The idea is to ferry passengers on routes of up to 100 miles in electric-powered aircraft that are much quieter, cheaper and safer than helicopters.The firm says it already has 1,500 pre-orders from customers including American Airlines.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you