The UK government is set to bolster its defence industry with a new strategy aimed at driving economic growth, creating jobs, and enhancing national security.
Defence Secretary John Healey unveiled the government's ambitious plan on December 2nd, inviting industry stakeholders, investors, and trade unions to contribute to shaping a more robust, innovative, and integrated defence sector. The strategy aims to increase defence sector jobs across the UK, with the goal of making the industry a cornerstone of the nation's economic renewal.
In response to escalating global threats, the government's strategy will prioritise deterrence, ensuring the UK possesses a resilient industrial base capable of rapid innovation. A unique wargame involving the UK defence industry will commence, simulating supply chain disruptions and intense combat scenarios to strengthen preparedness.
Strengthening Domestic Supply Chains
The strategy will focus on bolstering domestic supply chains in critical areas like semiconductors and steel. The government's recent investment in a defence semiconductor factory in County Durham exemplifies this commitment. By attracting private investment and providing long-term certainty, the government aims to mobilise the private sector to address global challenges.
Industry Investment and Job Creation
To underscore the strategy's impact, several defence companies have announced significant investments and job creation initiatives:
- Helsing: Europe's largest defence AI company will mass-produce AI-enabled drones as part of its £350 million investment in the UK.
- BAE Systems: Plans to recruit thousands more employees and invest in skills development.
- Babcock: Will create nearly 1,500 early career roles to support UK defence.
- Rolls-Royce: Has opened a new office in Glasgow, generating 120 jobs to support UK submarine programs.
Addressing Past Challenges
The government aims to rectify past issues that hindered defence sector growth, including inefficient spending, skills shortages, export limitations, and long-term partnership deficiencies. By prioritizing efficient spending, fostering innovation, and encouraging exports, the government seeks to deliver benefits for both British businesses and the public.
The defence sector already supports over 430,000 jobs across the UK, with a significant portion outside of London and the Southeast. The new strategy aligns with the government's growth mission, aiming to distribute benefits to every region and nation.
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