Prime Minister Sir Keir Starmer has unveiled plans to boost the UK economy by creating thousands of new jobs in the defence sector, as part of a broader strategy to drive national growth.
Defence Secretary John Healey is set to launch the Government’s new Defence Industrial Strategy (DIS) on Monday, backed by an initial £250 million investment. Central to the plan are new defence growth deals to be rolled out across key regions of the UK, including Plymouth, South Yorkshire, Wales, Scotland, and Northern Ireland.
Government ministers estimate the strategy could generate demand for up to 50,000 new defence jobs by 2034–35.
The announcement comes amid signs of a slowing economy. The UK unemployment rate has risen since the last Budget and is projected to reach 5% next year.
As part of a wider economic focus, Starmer recently appointed Pat McFadden to lead a new government department aimed at accelerating growth. Darren Jones has also been named Chief Secretary to the Prime Minister, advising on economics and policy delivery.
Chancellor Rachel Reeves, who is preparing her first autumn Budget now expected in late November—welcomed the defence strategy.
“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,” Reeves said.
She also highlighted the critical role of innovation in modern defence, “The conflict in Ukraine is a stark reminder of the need for rapid replenishment and a constant cycle of innovation between industry and the front line.”
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Plymouth, home to the largest naval base in Western Europe, will see long-term investment in maritime autonomy and advanced naval systems.
South Yorkshire will receive support to expand its production of specialist defence materials and components.
Wales will benefit from investment aimed at growing its uncrewed aerial vehicle (UAV) sector.
Scotland will see targeted funding across its space, maritime, and defence technology industries.
Northern Ireland, already a leader in cybersecurity, will build further on its defence and maritime capabilities.
Strategy designed to make the UK a global leader in defence innovation
Healey said the strategy is designed to make the UK a global leader in defence innovation and industrial development.
“The defence industrial strategy will make defence an engine for growth across the UK, backing British jobs, British industry, and British innovators,” he said.
Also, “we want to make the UK the best place in the world to start and grow a defence firm – and put Britain at the leading edge of innovation.”
