New Defence Industrial Strategy announced

A new Defence Industrial Strategy means that British defence firms will get government priority for investment to boost economic growth, bolster British jobs, and strengthen national security.

Today (2nd December), the defence secretary John Healey is to launch the government’s Defence Industrial Strategy by inviting investors, innovators, industry and trade unions to share their opinions to grow a better, more integrated, more innovative and resilient defence sector.

Mr Healey is to speak at a London Defence Conference event and set an ambition to increase defence sector jobs in “every nation and region of the UK” and publish a new Statement of Intent for the Defence Industrial Strategy this morning.

The government’s Defence Industrial Strategy will centre deterrence, ensuring potential threats know the UK has an industry base that can innovate at a wartime pace.

In order to demonstrate the UK’s commitment to develop a faster, more resilient supply chain, an unseen war-game will start today with the UK defence industry, which will explore how industry and the Ministry of Defence (MOD) could sustain personnel on the frontline when faced with constant supply chain disruption.

This strategy will help make the defence sector for the UK a source of growth and will strengthen domestic supply chains in critical areas, like semi-conductors and steel. This new approach intends to show how public investment and long-term certainty can help generate billions in private investment into the UK defence strategy.

Today’s announcement comes as defence companies announce major new investments and facilities, helping to boost jobs and provide growth across the country.

Helsing, Europe’s largest defence AI company, will announce plans to produce thousands of a new AI-enabled drone, and BAE Systems is to announce thousands more recruits next year alongside more investment in skills. Babcock is set to announce almost 1500 new early career roles to support UK defence over the next year, and Rolls-Royce have opened a new office in Glasgow, creating 120 new jobs to support the roll-out of major UK submarine programmes.

This comes part of the new government’s plans to address problems which have historically held back growth in the defence sector previously, such as inefficient spending, skills shortages, a lack of focus on exports and long-term partnerships. The government aims to support British businesses and the public through this shift in approach.

At the heart of the new defence strategy lies the government’s mission to grow every region in the UK. The defence sector already supports one in 60 jobs in the UK, equalling a total of 434,000 good, well-paid jobs, most of which (67%) outside London and the South East.

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.

“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 broad.”

Kevin Craven, CEO of 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 canting this in the latest phase.”

Alongside this, the government also intends to appoint a full-fledged national armaments director. Its aims is to ensure the armed forces are properly equipped to defend Britain, build up the British defence industry, and crack down on waste.

Moreover, renewed confidence in the UK defence industry is also due to initiatives like Rheinmetall promising a new factory which will facilitate British production of artillery gun barrels for the first time in 10 years, using British steel produced by Sheffield Forgemasters. 

The last Defence Industrial Strategy was published in 2021, before Russia’s full-scale invasion of Ukraine. Consequently, the new Defence Industrial Strategy will align with the Strategic Defence Review.