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£1.1 billion defence investment powers skilled jobs growth across Wales

£1.1 billion defence investment powers skilled jobs growth across Wales

Daniel Bevan - Editor

Daniel Bevan - Editor

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Wales is reaping the benefits of a £1.1 billion annual defence investment that is helping to sustain thousands of skilled jobs and strengthen the nation’s role in the UK’s defence and security industries.

According to the UK Government’s latest Defence Footprint report, the Ministry of Defence spent £1.1 billion with industry in Wales over the past year, directly supporting 3,900 jobs across the nation. This equates to £340 of defence spending per person, underscoring the sector’s growing importance to the Welsh economy.

The investment forms part of the UK Government’s historic increase in defence spending, set to rise to 2.6% of GDP by 2027 with an ambition to reach 3% in the next Parliament. 

Officials say this commitment not only strengthens national security but also drives innovation, supports skilled employment and stimulates regional economies — aligning with the Government’s wider Plan for Change.

Secretary of State for Wales Jo Stevens said: “The defence industry is a vital part of the Welsh economy and provides thousands of high-quality jobs across every part of the country.

“Each of the Ministry of Defence’s top five suppliers has a footprint here so Wales is well placed to benefit from the UK Government’s increase in defence spending.

“Our number one mission is kickstarting economic growth and by investing in the defence sector we are safeguarding our national security, creating new jobs and putting more money in people’s pockets.”

Defence investment in Wales spans advanced manufacturing, cyber security, and high-end engineering, with major operations established from Anglesey to Cardiff. 

The sector supports a wide network of local supply chains, from small component producers to large-scale manufacturing hubs, helping Welsh firms secure long-term contracts and expand into international markets.

Minister for Defence Readiness and Industry Luke Pollard MP added: “Our record uplift in defence investment will ensure our forces have the kit they need to fight, ensuring we are secure at home and strong abroad.

“By making defence an engine for growth across the country and supporting the Government’s Plan for Change, the defence dividend is benefitting Welsh jobs, communities and businesses.

“Wales’ expertise in advanced manufacturing and cyber security makes it an essential part of Britain’s defence ecosystem, delivering prosperity for communities across the country.”

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