UK defence to become 'engine for growth' as Britain prepares for historic new NATO budget

John Healey has unveiled a new strategy to make defence an "engine for growth" across the UK with the promise of thousands of jobs and stronger regional economies. The Defence Industrial Strategy (DIS), launched on a visit to Bristol firm Rowden, will create five new Defence Growth Deals across the country backed by £250million over the next five years.

The Defence Secretary said the plan would make the UK the best place in the world to start and grow a defence company while putting Britain "at the leading edge of innovation". He said: "The Defence Industrial Strategy will make defence an engine for growth across the UK, backing British jobs, British industry and British innovators."

Mr Healey added: "Defence Growth Deals offer a new partnership with UK Defence to build on industrial and innovation strengths that regions already hold.

"Together we aim to drive an increase in defence skills, SMEs (small and medium-sized enterprises) and jobs across all four nations.

"We want to make the UK the best place in the world to start and grow a defence firm and will put Britain at the leading edge of innovation."

The deals would bring together businesses, academia and local as well as national government to foster innovation and drive investment in Britain's sluggish economy.

Chancellor Rachel Reeves said: "This is a plan for good jobs paying decent wages in Cardiff, Belfast, Glasgow, Sheffield, Plymouth and beyond.

"Through Defence Growth Deals, we will unleash the power of local economies while securing our country - building an economy that works for working people, in every part of this country, just as our Plan for Change promised."

The Government said early analysis suggests there could be demand for up to 50,000 more defence jobs by 2034/35 as spending increases. Ms Reeves said in June Britain would become a "defence industrial superpower" as she unveiled an £11billion boost in military spending,

The first Defence Growth Deals will be in Plymouth, South Yorkshire, Wales, Scotland and Northern Ireland. Plymouth, which is home to the largest naval base in Western Europe, will receive investment over the next decade, including in maritime autonomy.

South Yorkshire will see backing for its role in producing specialist materials and components for defence. Wales will receive support to grow its UAV (unmanned aerial vehicle) sector, while Scotland will see investment across its space, maritime and technology industries.

Northern Ireland, which is already recognised as a cybersecurity hub, will build on its defence and maritime strengths, according to the Government.

The plan is underpinned by a historic increase in defence spending, which will rise to 2.6% of GDP by 2027, with an ambition to reach 3% in the next Parliament amid pressure on NATO countries to spend more from US President Donald Trump.

Ministers said the DIS will strengthen the UK's industrial base and ensure industry can respond rapidly to future challenges, drawing lessons from the war in Ukraine.