Defence Secretary launches new strategy to boost UK jobs and growth

UK based defence firms will be prioritised for government investment under a new defence industrial strategy that will drive economic growth, boost British jobs and strengthen national security.
Defence Secretary, John Healey launched the government’s Defence Industrial Strategy, inviting investors, innovators, industry and trade unions to give their views on how to grow a more integrated, innovative and resilient defence sector.
With global threats increasing, the government’s Defence Industrial Strategy will place deterrence at the heart of a new approach, to ensure adversaries know the UK has an industrial base that can innovate at a wartime pace.
To develop a faster, more resilient supply chain, a first-of-its-kind wargame will begin with the UK defence industry. The wargame will explore how industry and the MOD could sustain personnel on the frontline when faced with constant supply chain disruption and intense fighting.
The government aims for the strategy to help make the defence sector an engine for UK growth and will strengthen domestic supply chains in critical areas, such as semi-conductors and steel. The new government has already invested in the acquisition of a defence semiconductor factory in County Durham. The new strategy will show how public investment and long-term certainty can help crowd-in billions in private investment into UK Defence and will “mobilise the private sector to help face down global threats.”
In a show of support for this approach, today’s announcement comes as defence companies announce major new investments and facilities, helping boost jobs and growth across Britain.
- Helsing – Europe’s largest defence AI company will announce plans to mass-produce thousands of a new AI-enabled drone, as part of its £350 million investment into the UK over the next five years.
- BAE Systems is set to announce thousands more recruits next year alongside a major new investment in skills.
- Babcock – is set to announce almost 1500 new early career roles with graduate and apprenticeship opportunities to support UK defence over the coming year.
- Rolls-Royce – have opened a new office in Glasgow which will play a crucial role in attracting skilled employees and supporting regional growth. The 120 new jobs it creates will support the delivery of major UK submarine programmes.
The new government is seeking to address some of the problems of the past which have held back growth in the defence sector, including inefficient spending, skills shortages, a lack of focus on exports and long-term partnerships.
Defence Secretary, John Healey MP said: "Our defence sector should be an engine for jobs and growth, strengthening our security and economy. That requires a defence industry that is better and more integrated - one that can keep our Armed Forces equipped, innovating at a wartime pace, and ahead of our adversaries.
"We will develop this new Defence Industrial Strategy with industry, with innovators and with workers. We will mobilise the private sector to help face down global threats, direct more public investment to British businesses and create jobs and growth in every nation and region of the UK.
"National security is the foundation for national stability and growth. We are sending a signal to the market and to our adversaries: with a strong UK defence sector we will make Britain secure at home and strong abroad."
The new strategy will be shaped with the defence industry, identifying opportunities to innovate at speed, with the resilience to deter aggression by adversaries, able to seize the opportunity presented by the technologies of the future, while growing the UK’s share of the exports market.
Kevin Craven, CEO of Farnborough-based ADS Group said: "The Government underlining the importance of the defence sector to the UK economy is hugely welcomed, particularly the sector’s inclusion as a high priority area for growth. ADS has consistently convened meaningful engagement between our members, MOD and wider stakeholders, and we look forward to continuing this in the latest phase."
ADS represents well over 1,300 members from the UK’s innovative, entrepreneurial and prosperous aerospace, defence, security, and space sectors.
Kevin added: "Industry greatly appreciates the opportunity for deep involvement with these processes. To deliver the right capability to support the UK’s ability to deter, it is pivotal that we continue to contribute to military planning activities."
The Government is also appointing a fully-fledged National Armaments Director. Its aim is to ensure the armed forces are properly equipped to defend Britain, to build up the British defence industry and to crack down on waste.