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At a defence industry event in London, Healey laid out the government’s plan to create a more integrated and innovative defence sector. “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,” he said.
Driving Regional Growth and Job Creation
A central goal of the Defence Industrial Strategy is to foster job creation and investment in every region of the UK. Healey committed to expanding defence sector employment across the country. “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,” he explained.
Defence Industry Investments
The launch of the Defence Industrial Strategy coincided with several major investments in the UK’s defence sector.
- Helsing, Europe’s largest defence AI company, unveiled plans to invest £350 million in the UK over the next five years to mass-produce thousands of AI-enabled drones.
- BAE Systems announced plans to hire thousands of new recruits and increase investment in workforce skills next year.
- Babcock will create nearly 1,500 new early-career roles, offering graduate and apprenticeship opportunities to support UK defence.
- Rolls-Royce has opened a new office in Glasgow, creating 120 skilled jobs to support major UK submarine programs.
Maria Eagle, Minister for Defence Procurement and Industry, visited Barrow-in-Furness, where BAE Systems is building the UK’s next-generation nuclear submarines, to announce further investments.
Building Resilient Supply Chains
The new strategy also focuses on strengthening the UK’s defence supply chains to ensure the country’s armed forces can maintain operational readiness during high-intensity conflict. The government is launching a first-of-its-kind wargame with the UK defence industry to test how the sector and the Ministry of Defence (MOD) can maintain personnel on the frontline during supply chain disruptions.
The government has already made significant investments in critical infrastructure, including a semiconductor factory in County Durham. “National security is the foundation for national stability and growth,” Healey said. “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.”
A Renewed Focus on Defence Sector Growth
The government’s renewed commitment to the UK’s defence industry has been welcomed by major players in the sector. Kevin Craven, CEO of ADS Group, praised the government’s focus on the sector as a high priority for growth. “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,” he said.
Healey concluded by reaffirming that the strategy would align with the UK’s broader economic goals, including the Strategic Defence Review and the upcoming Trade Strategy. “We will develop this new Defence Industrial Strategy with industry, with innovators and with workers,” Healey said. “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.”