Wales’s defence industry is set to benefit from £15 billion of investment, thanks to the UK Labour Government funding key equipment and technology.
Today’s landmark investment will safeguard and create thousands of Welsh defence jobs – the biggest boost in defence spending since the Cold War – after 14 years of Tory indecision and lack of investment in defence.
The investment will boost Wales’s role as a site of testing and development, also funding the £50m Defence Growth Deal for Wales, announced by the UK Labour Government earlier this year, which will secure Welsh businesses’ direct access to defence contracts.
Major suppliers with established locations across Wales include Thales in Ebbw Vale, General Dynamics in Oakdale and Merthyr Tydfil, Airbus in Broughton and Newport, QinetiQ in Aberporth and BAE Systems in Glascoed. The new deal will also improve access to defence contracts for smaller Welsh SMEs.
Nick Smith Welsh Labour MP for Blaenau Gwent & Rhymney, said: “Ensuring our Armed Forces have the capability, funding and equipment to fight and defend our nation is vital. Today’s announcement means that the UK Labour Government is backing the Welsh defence industry to deliver this cutting-edge technology.
“I know how important this is to my constituents and I welcome today’s announcement by the UK Labour Government which will boost jobs in the area and back suppliers.”
Secretary of State for Wales Jo Stevens said: “This government is determined to keep the UK safe. Our Defence Investment Plan will shape the future of Wales’s defence industry for years to come, protecting and delivering skilled well-paid jobs across Wales.
“Wales is at the forefront of the autonomous defence technology that our Armed Forces need and this investment will drive growth in this key sector.
“We are building and investing in Welsh expertise so Wales will continue to lead the way in the UK’s defence.”
Almost 4,000 people in Wales are currently already employed through MOD industry spending, as part of the more than £1 billion already spent with the Welsh defence industry.
For Wales, other key funding in the Defence Investment Plan includes:
- Defence Growth Deal: Funding for the £50m Defence Growth Deal for Wales, which was launched in February.
- Defence Office for Small Business Growth: Launched in January, we will spend an additional £2.5Bn with SMEs – including in Wales – by 2028. This is a 50% increase of direct spend with SMEs.
Defence Skills Package: Support a £182m skills package to strengthen the pipeline of engineering, digital, and advanced manufacturing talent across the defence sector.