In 2014 the Farnborough Airshow saw orders and commitments for more than $204 billion of which £12 billion flowed through into the UK SME supply chain regionally and nationally. In addition the local economic impact of visitors within 25 miles was estimated to be £36 million, whilst broader UK economic impact of visitors was estimated to be £18 million.
To ensure the future sustainability and growth of future Airshows at Farnborough Aerodrome, in December 2016, we agreed in partnership with Hampshire County Council, Rushmoor Borough Council and Barclays Bank to invest a total of £26.7 million to support Farnborough International Limited build a new permanent regional conference and exhibition centre that will stimulate economic development, growth and jobs in the South East region and the wider UK economy.
Running the show at Farnborough every two years, provides £54 million of investment from visitors during the show and results in £12 billion of orders that directly affect the UK supply chain.
The importance of the Farnborough International Airshow to the UK economy and the UK aerospace and defence industry cannot be underestimated as these figures illustrate. We need to ensure the future sustainability and competitiveness of the Airshow by keeping our facilities upgraded and fit for purpose so we can continue to create wealth across the UK and retain our competitive edge over Paris and Berlin.
The loan arrangement including Enterprise M3, Hampshire County Council and Rushmoor Borough Council is compatible with investment aid to Small and Medium Sized Enterprises (SMEs) in Article 17 of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty GBER. Article 17 is as follows: Investment aid to SMEs - 1. Investment aid to SMEs operating inside or outside the territory of the Union shall be compatible with the internal market within the meaning of Article 107(3) of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, provided that the conditions laid down in this Article and in Chapter I are fulfilled. The arrangement is under the ceiling limit of €7.5 million and the 10% intensity level.
In October 2013 we also awarded £2.5 million from our Growing Enterprise Fund to build 41 permanent chalet structures at the site of the Farnborough Airshow, adjacent to the east entrance of FIVE, the site’s first permanent exhibition facility. This ambitious site development plan will maintain the status of the Farnborough International Airshow (FIA) and open up the FIVE venue even further outside of the biennial Airshow period for other exhibitions and events. The project will deliver 5,000sqm of exhibition space and create nearly 40 jobs. The Growing Enterprise Fund will be repaid through the savings from not having to construct temporary facilities every two years for the Airshow, and income from additional events. Repayments began in summer 2014.