UK Government unveils defence growth deal for Wales to drive jobs and innovation
UK Government unveils defence growth deal for Wales to drive jobs and innovation
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The UK Government has announced plans for a Wales Defence Growth Deal, designed to strengthen the nation’s defence sector, create high-skilled jobs and bolster the resilience of the UK’s wider defence industrial base.
The initiative forms part of the new Defence Industrial Strategy, which aims to position defence as a driver of economic growth while reinforcing national security.
Utilising a share of a £250 million of money for UK Defence Growth Deals, Wales will forge a long-term partnership between the UK and Welsh Government, uniting business and research institutions in the nation to harness local expertise and resources in support of the UK Armed Forces.
Defence Secretary John Healey MP said: “The Defence Industrial Strategy will make defence an engine for growth in Wales, backing jobs, industry and innovators.
“Defence Growth Deals offer a new partnership with UK defence to build on industrial and innovation strengths that regions already hold. Together we aim to drive an increase in defence skills and jobs across Wales.
“We want to make the UK the best place in the world to start and grow a defence firm and will put Britain at the leading edge of innovation.”
Chancellor Rachel Reeves said the plan would support both the economy and security. She said: “This is a plan for good jobs paying decent wages in Wales and beyond.
“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, just as our Plan for Change promised.”
According to the latest figures, Ministry of Defence (MOD) spending already supports almost 4,000 jobs in Wales. The Government said the new deal would maximise the sector’s potential, driving growth and supporting its Plan for Change.
Secretary of State for Wales, Jo Stevens, said the move would strengthen an already thriving sector. She said: “This investment in defence will bring a real boost for Wales’ economy and support highly skilled jobs for years to come – this is the defence dividend.
“Wales has an innovative and thriving defence sector with a presence in every part of the country. With UK Government working alongside Welsh Government and industry, this strategy will help ensure the sector goes from strength to strength.”
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, highlighted the opportunities ahead. She said: “Wales excels across the defence sector, in areas including cyber security, opto-electronics, land systems, training and testing, so we are well placed to seize the opportunities that lie ahead in developing the defence industrial base here in the UK and in Europe.
“We have worked closely with the UK Government in shaping the UK’s Modern Industrial Strategy and ensuring that Wales is pivotal to its delivery.
“This is a government that is ambitious about Wales’ future prosperity. The Defence Industrial Strategy, and the pioneering Wales Defence Growth Deal, will be key as we strive to drive further economic growth in high value sectors for communities across Wales. I also look forward to promoting Wales’ considerable capabilities in the defence sector at DSEI this week.”
Wales is emerging as a hub for unmanned aerial vehicles (UAVs) and autonomous systems, with companies such as Tekever in Pembrokeshire developing advanced technologies. Infrastructure assets like the Snowdonia Aerospace Centre and research facilities such as the Welsh Centre for Defence Autonomy are seen as critical to positioning Wales at the forefront of defence innovation.
The forthcoming Defence Growth Deal will be tailored to Wales’ strengths, with areas of focus expected to include:
Skills – addressing workforce needs and future capability requirements.
Innovation – supporting research, development and adoption of new technologies.
Procurement – aligning local supply chains with Defence priorities.
Investment – targeting funding to unlock economic and strategic value.
Partnership – building collaborations that deliver for Wales and the UK.
The Wales Defence Growth Deal will be unveiled in the coming months following engagement with devolved governments, industry and other stakeholders.
Responding to the announcement, William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said: “Raising defence investment is not only vital for the UK’s national security in an age of higher geopolitical risk but also to boost growth, jobs, exports and supply chains.
“The new Defence Growth Deals will provide opportunities for businesses to invest in locations across the country in key sectors like munitions, drones, frigates, submarines, and cyber security.
“The UK needs this long-term investment to develop stronger defence supply chains and more efficient procurement plans to meet new global threats. There are many regions of the UK with a strong defence heritage that will be key to this.
“But it is also important that we widen our supply chains across the UK to leverage the skills, innovation and creativity of businesses wherever they are located.
“The Chamber Network will work closely with our defence companies and government to ensure UK defence industries rise to the challenge but also maximise the opportunities in a key sector of our economy and global exports.”
