Government unveils Team UK approach to defence

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Recommendations from the Defence and Economic Growth Taskforce will outline key steps – including developing regional Defence Growth Deals – to ensure that working people benefit from the government’s move to increase defence spending.

New opportunities for UK workers are already on the way with defence tech company Helsing announcing that it will open the UK’s first Resilience Factory this year. The UK technology and its supply chain will create specialist high-value jobs in the South West and across the country, as Helsing doubles the size of its UK business.

Helsing’s acceleration of its £350 million Trinity House private investment will see it provide allied navies with AI-powered miniature submarines to protect critical underwater infrastructure. The advanced manufacturing facility will be based in Plymouth, as the new national centre of marine autonomy.

The Taskforce’s recommendations will be launched at a Ministry of Defence (MoD) Roundtable chaired by the Chancellor Rachel Reeves and Defence Secretary John Healey today.

The report’s key recommendation is for a ‘Team UK’ strategy to ensure the UK is globally competitive, driving innovation, jobs and prosperity across the UK, reforming procurement and contracting processes to grow the UK defence sector – in line with the Strategic Defence Review.

It also recommends prioritising investment in ‘dual use’ technologies that can be used for both civil and military purposes in the UK.

The meeting comes as figures published last week show that 151,000 UK jobs are directly supported by the MoD’s spend with industry – an increase of 14,000 on the previous year.

Chancellor of the Exchequer, Rachel Reeves, said: “A new era of threats demands a new era for defence and security. That’s why we took the decision to prioritise defence spending, increasing it to 2.6% of GDP by April 2027.

“Through this, and the work of the Defence and Economic Growth Taskforce – including Helsing’s welcome announcement of the first UK Resilience Factory – we are securing our nation and unleashing the economic potential in the Defence sector, benefitting working people across the UK through our Plan for Change.”

Ned Baker, UK Managing Director, Helsing: “Helsing supports the Government’s ambitions for our defences and economy. We are investing in both by opening the first UK Resilience Factory and accelerating our £350 million commitment.

“We have confidence in the Government’s commitment to new technological solutions for defence. Together, we can attract further private investment, equipping our Armed Forces and growing the economy.”

The Secretary of State for Defence, John Healey, said: “In a new era for defence, we are building a new partnership with the UK’s outstanding defence industry, with innovators and with investors.

“We will equip our Armed Forces for the future and make defence an engine for economic growth through our Defence Industrial Strategy – unlocking investment, reforming procurement, championing innovation and backing companies of all sizes.

“I welcome the Defence and Economic Growth Taskforce’s report which recognises how we can boost high-skilled jobs across the country and grow our economy while strengthening our frontline forces.”

The government has already begun work on three of the report’s recommendations:
Establishing a defence SME Hub to provide support to new market entrants.
Commencing work on a Defence Exports Office in the MOD, as announced in the Strategic Defence Review.
Committing to developing Defence Growth Deals across the UK at the Spending Review.

The remaining recommendations will now be worked through as part of the cross-Whitehall Defence Growth Board and the Defence Industrial Joint Council ahead of the forthcoming launch of the Defence Industrial Strategy.

The Taskforce, led by the Confederation of British Industry (CBI) with Oliver Wyman and co-chaired by the Chancellor and Defence Secretary, is a unique partnership between government, industry and financial institutions. Its 20 member organisations have collaborated with HM Treasury and the MoD to produce the recommendations.