UK launches defence growth strategy to try to boost jobs

The UK government will set out a new defence industrial strategy on Monday where it will launch a £250m fund to invest in five local economies which it hopes will create jobs and fuel growth.

Defence Secretary John Healey will announce that Cardiff, Belfast, Glasgow, Sheffield and Plymouth will receive investment to expand each of the area’s military and security industries.

The government has pledged to lift defence spending to 2.5% of gross domestic product (GDP) – a measure of the size of the economy – by 2027 with an “ambition” to reach 3% in the next decade.

The UK recently won a £10bn contract to supply the Norwegian navy with at least five new warships.

The Type 26 frigates will be built at BAE Systems’ Glasgow shipyards.

The deals announced as part of the defence industrial strategy will be similar to a public and private partnership in Barrow, Cumbria which is known for building nuclear submarines.

The local council, the national government and BAE Systems are investing millions of pounds in the area, which will include regenerating the High Street, building homes and improving transport links.

In June, the government published a strategic defence review which looked at the UK’s military and security capabilities and made 62 recommendations to fill gaps and boost investment.

Ahead of Healey’s speech, the Ministry of Defence said: “Innovation and industrial power are central to deterrence and decisive factors in war.

“The conflict in Ukraine provides a stark reminder of the imperative of the necessity for fast replenishment and resupply by industry, and a rapid, continual cycle of innovation between industry and the front line.”

ADS Group, the trade association for the defence, security, space and aerospace industries, estimates that the UK’s increased spending could create up to 50,000 jobs by 2035.

Clive Higgins, chair and chief executive of Italian defence contractor Leonardo told the BBC’s Today programme that he welcomed funding for jobs and skills the defence industrial strategy would provide, but added: “We need more detail, the devil is always in the detail.”

He added that the industry was yet to see a flow of new contracts fuelled by the government’s promise to lift defence spending.

“That’s very much the next element,” said Mr Higgins. “We now need to see that demand signal from government, those contracts coming forward… to make those employment numbers a reality and give people good, sustainable jobs for the future. “

Under the defence growth deal, places such as Plymouth and South Yorkshire will receive funding. Home to the largest naval base in western Europe, Plymouth specialises in maritime autonomous systems.

South Yorkshire, meanwhile, is a key region for the research, development and engineering of high-grade components and materials such as specialist steel for gun barrels and nuclear submarines.