The Defence Industrial Strategy (DIS) will channel significant investment into towns and cities across the UK through the creation of Defence Growth Deals, backed by a £250 million fund. These deals are intended to drive local economic growth, foster innovation, and create long-term employment in regions with strong potential but underdeveloped industrial capacity.
Five initial Defence Growth Deals will be launched in England, Scotland, Wales, and Northern Ireland. They will replicate the success of the Team Barrow model in Barrow-in-Furness, where close collaboration between government, industry, and academia has supported the UK’s nuclear submarine programme. Each deal will align defence investment with wider government support in areas such as skills, housing, and planning. The aim is to attract private investment, strengthen local supply chains, and ensure sustainable growth over the next decade.
The government has highlighted the scale of potential demand. Industry analysis suggests there could be as many as 50,000 additional defence jobs required by 2034/35. Defence Growth Deals are intended to prepare communities to meet this demand, ensuring local economies can benefit directly from rising defence spending. This programme will be underpinned by the government’s pledge to raise defence spending to 2.6 percent of GDP by 2027, with a target of 3 percent in the following Parliament.
The first five regions selected reflect areas with established industrial and research strengths. Plymouth will benefit from £4 billion of investment over 10 years to consolidate its position as the UK’s hub for naval operations and marine autonomy. South Yorkshire will build on its advanced materials expertise for next-generation platforms. Wales will expand its role in unmanned aerial vehicle development, supported by test facilities and academic research. Scotland will strengthen its position in space, shipbuilding, and maritime innovation. Northern Ireland will further develop its recognised strengths in cyber security, alongside defence SMEs and established prime contractors such as Thales and Harland & Wolff.
Defence Secretary John Healey said the Defence Growth Deals will deliver new skills and jobs across all four nations while ensuring defence becomes an engine for industrial growth. Chancellor Rachel Reeves added that the investment will provide good jobs in cities including Cardiff, Belfast, Glasgow, Sheffield, and Plymouth, while strengthening national security.
The DIS is designed as a long-term partnership between government, industry, and research institutions. By aligning investment with local strengths and future defence requirements, the strategy seeks to deliver economic benefits across the UK while reinforcing the country’s industrial and technological base for national security.
If you would like to join our community and read more articles like this then please click here
Post written by: Vicky Maggiani
Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.
RELATED ARTICLES
December 5, 2025
Maritime - UK and Norway Sign Lunna House Agreement to Counter Undersea Threats
The United Kingdom and Norway have formalised a major new defence agreement to enhance security in the North Atlantic and
December 5, 2025
Land - MoD Invests £3.1 Million in Mobile Quantum Brain Scanner to Assess Blast Effects
The Ministry of Defence has allocated £3.1 million for the development of the world’s first mobile magnetoencephalography (MEG) brain scanner,
