Chancellor Rachel Reeves has revealed further details of plans to boost Britain’s defence industry, including reforms of the procurement system and the appointment of a new oversight board.
The government had already announced an extra £2.2bn will be plugged into the military amid concerns over US President Donald Trump’s commitment to European defence.
Speaking in the Commons, Reeves said the additional investment was about “increasing economic security” alongside national security.
A minimum of 10 per cent of the Military of Defence’s equipment budget will be invested in novel technologies, such as drones and artificial intelligence.
Reeves announced wide-ranging plans for industrial growth at the key centres of Barrow and Furness and Portsmouth’s naval base, as she hailed the UK’s “world-leading” defence companies.
Barrow, which is considered a hub for nuclear security, will receive additional investment and better homes for its military staff.
UK Export Finance (UKEF) will also receive a £2bn boost “to provide loans for overseas buyers of UK defence goods and services.”
Overseeing the plans will be a new Defence Growth Board to “maximise the benefits from every pound of taxpayers’ money that we spend… we will put defence at the heart of our modern industrial strategy,” Reeves said.
The government also announced its intention to reform the UK’s defence procurement system, which has been criticised for its excessive bureaucracy.
“We will reform our broken defence procurement system, making it quicker, more agile and more streamlined, giving small businesses across the UK better access to Ministry of Defence contracts,” Reeves said.