2 minute read - 24th April 2024
Government to invest £10bn in UK defence industrial base
As part of the Prime Minister’s newly-released plans to increase defence spending to 2.5% of GDP by 2030, Rishi Sunak has vowed that a portion will be spent on the growth of the UK defence industrial base – investing at least an additional £10bn over the next decade on munitions production.
Delivering a speech alongside NATO Secretary-General Jens Stoltenberg, the Prime Minister said ‘we are at a turning point in European security’ and urged allies to step up. The UK’s defence spending will increase immediately and then rise steadily to reach £87bn at the end of the decade, hitting 2.5% of GDP by 2030.
There are three areas of focus for the UK defence budget: investing at least an additional £10bn on munitions production, delivering high-quality jobs and investment across the UK and ensuring the country has rapid production capacity and stockpiles of next-generation munitions; radically reforming defence procurement and creating a new Defence Innovation Agency, with at least 5% of the defence budget to be committed to R&D; and, a commitment of an additional £500m this year for the ammunition, air defence and drones Ukraine needs – the largest-ever single delivery of military equipment to Ukraine’s frontlines.
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As part of plans to increase defence spending to 2.5% of GDP by 2030, Rishi Sunak has vowed that a portion will be spent on the growth of the UK defence industrial base – investing at least an additional £10bn over the next decade on munitions production / Picture: James Robinson / BAE Systems
The government says the £10bn production investment over the next ten years, most of which will be spent with British industry, to grow domestic munitions production pipeline and increase stockpiles, sets a clear demand signal for industry through long term multi-year contracts. This represents nearly a doubling of the UK’s current spending on munitions production.
The investment will focus on key high-tech capabilities, including air defence missiles and anti-armour munitions, in addition to continued investment in UK-built 155mm artillery ammunition. Defence already supported more than 400,000 jobs in 2021/22 – the equivalent of 1 in every 70 UK jobs – but the announcement will support new high-quality jobs and economic growth across all parts of the UK.
Prime Minister Rishi Sunak, said: “In a world that is the most dangerous it has been since the end of the Cold War, we cannot be complacent. As our adversaries align, we must do more to defend our country, our interests, and our values. That is why today I have announced the biggest strengthening of our national defence for a generation.
“We will increase defence spending to a new baseline of 2.5% of GDP by 2030 – a plan that delivers an additional £75 billion for defence by the end of the decade and secures our place as by far the largest defence power in Europe. Today is a turning point for European security and a landmark moment in the defence of the United Kingdom. It is a generational investment in British security and British prosperity, which makes us safer at home and stronger abroad.”
Defence already supported more than 400,000 jobs in 2021/22 – the equivalent of 1 in every 70 UK jobs – but the announcement will support new high-quality jobs and economic growth across all parts of the UK / Picture: James Robinson / BAE Systems
