The UK government is set to announce a new defence industrial strategy that includes a £250 million fund aimed at investing in five local economies to foster job creation and growth. Defence Secretary John Healey will specify that Cardiff, Belfast, Glasgow, Sheffield, and Plymouth will benefit from this investment, which is intended to enhance the military and security industries in these regions.
Additionally, the government has committed to increasing defence spending to 2.5% of gross domestic product (GDP) by 2027, with an ambition to reach 3% over the following decade. Recently, the UK secured a £10 billion contract to supply the Norwegian navy with at least five new Type 26 frigates, which will be constructed at BAE Systems’ shipyards in Glasgow.
The new strategy is anticipated to mirror previous public-private partnerships, such as the one in Barrow, Cumbria, known for its nuclear submarine production. This collaboration among local councils, the national government, and BAE Systems aims to invest in local development, including High Street regeneration and improvements in infrastructure.
In June, the government published a strategic defence review that identified gaps in the UK’s military capabilities and proposed 62 recommendations to enhance investment. Ahead of the announcement, the Ministry of Defence emphasized the critical role of innovation and industrial strength in national defence, especially in light of recent global conflicts.
The ADS Group, representing defence, security, aerospace, and space sectors, estimates that the increase in defence spending may generate up to 50,000 jobs by 2035. Clive Higgins, head of Italian defence contractor Leonardo, acknowledged the potential benefits but called for more details on the strategy, noting that the industry has yet to see new contracts arising from the government’s pledge to boost defence spending. Areas like Plymouth and South Yorkshire are expected to receive funds, with Plymouth focusing on maritime autonomous systems and South Yorkshire specializing in high-grade materials for defence applications.
Source: https://www.bbc.com/news/articles/cm2dzlrm0jno?at_medium=RSS&at_campaign=rss