Wales’s economy will be boosted by a pioneering defence programme – backed as part of a £250 million UK-wide investment – to improve collaboration, foster innovation and create jobs.
Defence Growth Deals are being created as part of a bold initiative to support the growth potential of the defence industry, underpinned by the historic increase in defence spending to 2.6% of GDP by 2027 and the ambition to hit 3% in the next Parliament.
Utilising a share of a £250 million of money for UK Defence Growth Deals, Wales will forge a long-term partnership between the UK and Welsh Government, uniting business and research institutions in the nation to harness local expertise and resources in support of the UK Armed Forces.
Defence Secretary John Healey will today (Monday 8 September) announce the new venture as part of the launch of the Defence Industrial Strategy, which will make Defence an engine for growth.
Central to the DIS, the Defence Growth Deals will unlock growth, innovation, and job creation within key concentrations of defence and dual-use industry across the country, while bolstering the resilience of the UK’s defence industrial base.
Defence Secretary, John Healey MP said:
“The Defence Industrial Strategy will make defence an engine for growth in Wales, backing jobs, industry and innovators.
“Defence Growth Deals offer a new partnership with UK defence to build on industrial and innovation strengths that regions already hold. Together we aim to drive an increase in defence skills and jobs across Wales.
“We want to make the UK the best place in the world to start and grow a defence firm and will put Britain at the leading edge of innovation.”
Chancellor Rachel Reeves said:
“This is a plan for good jobs paying decent wages in Wales and beyond.
“Through Defence Growth Deals we will unleash the power of local economies while securing our country – building an economy that works for working people, in every part of this country, just as our Plan for Change promised.”
Latest statistics show that almost 4,000 people in Wales are already employed due to MOD industry spending, and this work will ensure every ounce of the sector’s potential is realised, driving economic growth and delivering on the Government’s Plan for Change.
Secretary of State for Wales, Jo Stevens said:
“This investment in defence will bring a real boost for Wales’ economy and support highly skilled jobs for years to come – this is the defence dividend.
“Wales has an innovative and thriving defence sector with a presence in every part of the country. With UK Government working alongside Welsh Government and industry, this strategy will help ensure the sector goes from strength to strength.”
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
“Wales excels across the defence sector, in areas including cyber security, opto-electronics, land systems, training and testing, so we are well placed to seize the opportunities that lie ahead in developing the defence industrial base here in the UK and in Europe.
“We have worked closely with the UK Government in shaping the UK’s Modern Industrial Strategy and ensuring that Wales is pivotal to its delivery.
“This is a government that is ambitious about Wales’ future prosperity. The Defence Industrial Strategy, and the pioneering Wales Defence Growth Deal, will be key as we strive to drive further economic growth in high value sectors for communities across Wales. I also look forward to promoting Wales’ considerable capabilities in the defence sector at DSEI this week.”
Wales is rapidly establishing itself as a powerhouse in unmanned aerial vehicle development and autonomous systems, with innovative companies like Tekever in Pembrokeshire leading the charge in cutting-edge UAV technology. The nation boasts world-class testing facilities including the Snowdonia Aerospace Centre, providing crucial infrastructure for defence innovation, while academic excellence is driven by institutions such as the Welsh Centre for Defence Autonomy.
This Defence Growth Deal will harness Wales’s unique strengths in autonomy and aerospace, creating high-skilled jobs whilst positioning the nation at the forefront of next-generation defence capabilities that will keep Britain secure.
Wales will have its Defence Growth Deal unveiled in the coming months, working with the Devolved Governments and other key stakeholders, the Ministry of Defence is launching a bespoke growth deal which will harness the distinct opportunities and strengths in the nation.
Detailed policy proposals will be developed collaboratively; areas of focus are expected to include:
- Skills – addressing regional workforce needs and future capability requirements;
- Innovation – supporting research, development, and adoption of new technologies;
- Procurement – aligning local supply chains with Defence priorities;
- Investment – targeting funding to unlock economic and strategic value;
- Partnership – fostering impactful relationships that deliver for the people of Wales.
The Defence Industrial Strategy will also address skills requirements in the sector, with a skills package containing a range of UK-wide measures aimed at attracting and retaining a skilled UK workforce.
This includes Destination Defence, a communications campaign aimed at raising the profile of a career in defence, defence presence on the UCAS website, the graduate and apprenticeship clearing system, and a Defence Skills Passport which will enable greater career opportunity and skills growth within the defence ecosystem.
