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New Defence Industrial Strategy Launched by Government


Defence Secretary John Healey believes that the defence sector should function as an ‘engine’ driving job creation and economic growth.

The UK government has announced plans to invest in domestic defence firms and conduct war game exercises as part of a new industrial strategy framework.

Introduced by Defence Secretary John Healey on Monday, the Defence Industrial Strategy (DIS) aims to boost the economy while enhancing UK security and defence capabilities by engaging the private sector to address global threats.
Healey stated, “National security is the foundation for national stability and growth. With a strong UK defence sector, we will ensure the security of Britain both domestically and internationally.”
The Ministry of Defence (MoD) has committed to prioritizing and supporting UK-based companies for defence investments and enhancing the resilience of the defence supply chain.

The MoD plans to use war game exercises to simulate scenarios in which supply chains and processes are disrupted due to military conflicts.

Healey added, “For the first time, we are incorporating industry figures into this war gaming approach. Our goal is to foster innovation at a wartime pace by collaborating with government and industry.”

The focus of the strategy is to enhance domestic supply chains in critical areas such as semiconductors and steel.

New Investments

The Ministry of Defence (MoD) announcement coincides with upcoming new investments and advancements from defence companies throughout the UK.

Helsing, Europe’s leading defence AI company, intends to produce thousands of AI-enabled drones through a £350 million investment in the UK over the next five years.

Additionally, BAE Systems is poised to unveil thousands of new hires next year along with a significant investment in skills development. This comes after a “significant fire” at BAE’s Barrow-in-Furness nuclear shipyard in October.
However, concerns about job security at BAE sites in Warton and Samlesbury have surfaced, with employees raising alarms about potential layoffs due to the downturn in British-built Typhoon jet production.

These facilities play a vital role in the manufacturing and testing of military aircraft, including the Eurofighter Typhoon.

Speculation about replacing Typhoons with U.S.-made F-35A aircraft prompted union leaders to call on the government to support British defence businesses and safeguard jobs.

The GMB union has applauded the launch of the DIS, emphasizing that it will create high-quality union jobs in working-class communities.

“Under previous governments, we lost significant onshore capabilities. It is imperative to prioritize job creation and skills development to maintain our status as a top-tier military power,” the union stated on Monday.

The government also announced that Rolls-Royce will establish 120 new positions in Scotland to support major UK submarine projects. Additionally, services provider Babcock is set to declare hundreds of jobs and apprenticeships to bolster UK defence in the coming year.

As part of other initiatives, the DIS will appoint a dedicated National Armaments Director to ensure the armed forces are adequately equipped.

Defence Spending

The government aims to achieve the highest sustained growth among the G7 nations, with over 200,000 UK jobs supported through defence industry spending.

The DIS, a manifesto commitment, will be distinct from the government’s Strategic Defence Review (SDR) and is set to be released in the first half of 2025.

The government has pledged to allocate 2.5 percent of GDP to defence spending and will outline a clear timeline in the spring.

Shadow Defence Secretary James Cartlidge expressed concerns on Monday about Labour delaying the clarification of their spending commitment plans.

“Today Labour is introducing a Defence Industrial Strategy while postponing the 2.5 percent timetable from March to June. Each day of delay undermines our armed forces’ ability to rearm promptly and adequately in response to current threats,” Cartlidge remarked.

PA Media contributed to this report.



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