The Ministry of Defence has officially launched the £50 million Wales Defence Growth Deal, a strategic initiative designed to establish the nation as a primary UK hub for autonomous technology and uncrewed systems.
Signed on 20 February 2026 at Cardiff Castle by Defence Secretary John Healey, Wales First Minister Eluned Morgan, and Secretary of State for Wales Jo Stevens, the agreement represents a significant shift in how the UK Government intends to foster innovation and streamline the defence supply chain. For businesses operating within the sector, the deal provides a clear roadmap for the development, testing, and manufacture of next-generation capabilities, including intelligence, surveillance, reconnaissance (ISR) platforms and uncrewed aerial systems (UAS).
Central to the deal is the expansion of testing infrastructure. The Ministry of Defence will widen access to existing ranges, specifically MOD Aberporth, while collaborating with the Civil Aviation Authority and its military equivalents to expand air corridors across central Wales. These developments are intended to provide both industry and the military with the necessary environment to conduct rigorous testing of uncrewed platforms. This infrastructure upgrade is a critical component for sub-contractors and technology developers requiring real-world validation of autonomous systems across land, sea, and air.
In a move that significantly alters the procurement landscape, the deal includes specific provisions to improve direct access for small and medium-sized enterprises (SMEs) to secure defence contracts. By removing historical barriers related to security clearances and classified access, the government aims to enable SMEs to work directly with the MOD rather than relying on prime contractors as intermediaries for classified work. This policy shift is intended to create a more level playing field, allowing innovative sub-contractors to compete more effectively for high-value tenders and ensuring that homegrown technical expertise is integrated directly into national defence projects.
The initiative also addresses the long-term requirement for a skilled workforce. Plans are underway to establish a new Defence Technical Excellence College by September 2027, focusing on training the next generation of engineers specialised in autonomous systems. This investment aligns with the broader Defence Industrial Strategy and the government’s commitment to increase defence spending to 2.6% of GDP by 2027. Currently, the MOD spends more than £1 billion annually within the Welsh defence industry, supporting approximately 4,000 jobs. With over 16,000 people employed in the wider Welsh aerospace and defence sector, this growth deal underscores the government’s intent to leverage regional expertise to bolster sovereign capabilities and ensure critical materials resilience. For the UK defence supply chain, this represents a substantial opening for sustained investment and technological advancement.
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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.
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