Defence Spending Economic Growth 2025-12-15
2025-12-15
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Questions & Answers
Q1
Direct Answer
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Context
The question follows the announcement of a £770 million defence industrial strategy aimed at boosting British industry, jobs, and skills.
When Jodrell Bank celebrated its 80th anniversary, we heard lots about its contribution to science and its 150,000 visitors per year. Does the Secretary of State share my excitement about the job opportunities that may result from repurposing Cawdor barracks in Pembrokeshire as a deep space advanced radar capability? Will he meet me to discuss job opportunities for manufacturers in my constituency resulting from that project, from the project for a new development site for the Windracers drone, and from other defence projects?
I do indeed recognise my hon. Friend’s excitement about the opportunities created by the deep space advanced radar capability, the new drone developments and projects that we will bring to Wales. As we make defence an engine for growth, we are also putting the UK at the leading edge of innovation in NATO. I can announce today that in its first year, UK Defence Innovation will invest over £140 million in new drone and counter-drone systems to protect the UK homeland and allies in the face of increasing Russian drone incursions. That is backing British small and medium-sized enterprises, British micro-SMEs and British universities.
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Q2
Direct Answer
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The question follows a statement about the launch of defence industrial strategy aimed at driving innovation, creating British jobs and boosting British skills.
As the Secretary of State outlined, the new defence growth deals announced earlier this year promise exciting opportunities, particularly for young people entering high-skill engineering and new apprenticeship roles. North Wales already hosts world-class defence firms, such as Teledyne Qioptiq; what benefits, especially for economic growth and opportunity, can my Wrexham constituency and north Wales more widely expect as those deals are rolled out?
We are working with the Welsh Government, Welsh industry, companies like those that my hon. Friend mentioned, and Welsh academics and universities to work out the dimensions of a Wales defence growth deal. It will be one of five growth deals backed by £250 million in this Parliament. New drone technology autonomy will be the focus of this new defence growth deal.
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Q3
Direct Answer
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The question follows a statement about the largest sustained increase in defence spending since the end of the cold war, directed to British-based businesses.
As the Secretary of State knows from visiting my constituency, Stevenage hosts a thriving defence and space sector, with more than a quarter of satellites in space built in our town. Next month, Airbus Defence and Space will open Launchpad, a new facility in Stevenage giving small and medium-sized enterprises and start-ups space to work and develop technologies. Can the Secretary of State confirm that our innovative primes and SMEs will receive proper attention when the defence industrial plan is implemented?
I can indeed. My hon. Friend is right: his constituency hosts not only some important big UK defence primes, but many very small innovative firms. That is why, as a new Government, we said that we would set a new target for the proportion of defence investment going directly to British SMEs. We set up a new SME growth centre to help them deal with Government, which has previously been too difficult.
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Q4
Direct Answer
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The world is rapidly increasing military preparedness and rearming, with some NATO allies surpassing the UK in certain metrics. There are concerns about the adequacy of planned UK defence expenditure.
Does the Secretary of State believe that the spending planned for 2027 to 2030 and onwards meets our needs and prepares us for war, should it arise?
I do indeed. The commitment this Government made in our first year to increasing defence spending by the largest sustained amounts since the end of the cold war is an historic move, with a commitment alongside NATO allies to increase to 5% of GDP what we put towards national security.
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Q5
Partial Answer
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The government previously committed to publishing the defence investment plan before the Christmas recess, but has not done so.
What day this week will the defence investment plan be announced?
We are working flat out between now and the end of the year to finalise the defence investment plan. Even though the hon. Gentleman is a new Member, he will appreciate, from serving on the Defence Committee, the scale of the decisions that we need to make.
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Assessment & feedback
Publication date
Working Flat Out
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Q6
Partial Answer
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There are concerns about the government's commitment to meeting deadlines for important documents such as the strategic defence review, defence industrial strategy, and housing strategy.
Will the defence investment plan be published before the rise of the House on Thursday: yes or no?
We are working flat out between now and the end of the year to finalise the work on the defence investment plan. The shadow Secretary of State, who was responsible for deep problems and programmes beset by failures, will appreciate the scale of the challenges we face.
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Publication date
Working Flat Out
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Q7
Partial Answer
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The European Union has established a €150 billion SAFE defence fund, but the UK has rejected access to this funding. There are concerns about missed opportunities for growth and security.
Can he confirm that the UK rejected access to the €150 billion EU SAFE—Security Action for Europe—defence fund, at a proposed cost of about £2 billion? Can he set out whether that is the correct figure, and explain whether his Department has estimated how much investment and industrial benefit could have flowed to the UK defence sector through our participation?
We signed the European Union security and defence partnership in May. We committed ourselves to negotiating with the European Union for access to the SAFE funding arrangements, but we were unable to reach a deal due to value-for-money concerns.
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Benefits of participation
Value-For-Money
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