Defence spending commitments will create a total of 85,000 jobs across the sector in the next 10 years, analysis by a leading industry body has suggested, as government officials are rolling out plans to attract investment from the private sector.
Ahead of a conference on defence investment, the trade body ADS has said the defence sector’s contribution to the UK economy could hit £23.5bn by 2035.
This would be a rise of 50 per cent in gross value added (GVA).
ADS, which represents companies in aerospace and security, also said some 85,000 “direct jobs would be created if the UK met a Nato target to boost defence spending to a share of 3.5 per cent of GDP by 2035.
This would add to the current 182,000 jobs available across industry.
Its findings were published as a government strategy paper on driving growth in the sector is setting out further plans for boosting small and medium-sized businesses in UK defence.
A policy paper set out plans to inject £250m into local authorities under “growth deals” that will allow local government officials areas deemed to have greater potential to work with industry while harnessing employment and investment.
Some of the initial selected locations include Plymouth, which is home to the largest naval base in Western Europe, and South Yorkshire.
Defence sector’s need for ‘value for money’
Kevin Craven, the chief executive of ADS, said a long-term plan for increasing defence spending would allow the sector to deliver “value for money” for UK taxpayers.
“Our sector drives social mobility and prosperity through the high proportion of jobs we offer people from all walks of life, through the international opportunities and high-tech development partnerships we build, and through the wide range of improvements to civilian life and every day technology that originate in our sector,” Craven said.
William Bain, head of trade policy at the British Chambers of Commerce, said the strategy gave businesses more opportunities to invest in places across the UK.
“The UK needs this long-term investment to develop stronger defence supply chains and more efficient procurement plans to meet new global threats. There are many regions of the UK with a strong defence heritage that will be key to this.
“But it is also important that we widen our supply chains across the UK to leverage the skills, innovation and creativity of businesses wherever they are located.
Industry professionals will gather in South East London this week to showcase new technology and lure investors into backing smaller companies.
Civil servants working in procurement are set to take part in panel events while officials from Ukraine and major international companies including Palantir will attend the conference.