02 Dec 24. UK based defence firms will be prioritised for government investment under a new defence industrial strategy.
- Amid global insecurity, new Defence Industrial Strategy to help secure Britain’s growth and create good jobs across UK.
- Boosting long-term UK investment and seizing new technology at centre of new strategy.
- Launch comes as hundreds of millions of pounds of new investment injected into the UK defence sector.
UK based defence firms will be prioritised for government investment under a new defence industrial strategy that will drive economic growth, boost British jobs and strengthen national security.
Defence Secretary, John Healey will today [Monday 2 December] launch the Government’s Defence Industrial Strategy – by inviting investors, innovators, industry and trade unions to give their views on how to grow a better, more integrated, more innovative and more resilient defence sector.
Speaking at a London Defence Conference event with investors in London, Healey will set an ambition to increase defence sector jobs in “every nation and region of the UK”. He will say that a strong defence sector can help provide “the foundation for a decade of national renewal.” He will publish a new Statement of Intent for the Defence Industrial Strategy this morning.
With global threats increasing, the Government’s Defence Industrial Strategy will place deterrence at the heart of a new approach, to ensure adversaries know the UK has an industrial base that can innovate at a wartime pace.
In a sign of the Government’s commitment to develop a faster, more resilient supply chain, a first-of-its-kind wargame will begin today with the UK defence industry. The wargame will explore how industry and the MOD could sustain personnel on the frontline when faced with constant supply chain disruption and intense fighting.
The strategy will help make the defence sector an engine for UK growth and will strengthen domestic supply chains in critical areas, such as semi-conductors and steel. The new government has already invested in the acquisition of a defence semiconductor factory in County Durham. The new strategy will show how public investment and long-term certainty can help crowd-in billions in private investment into UK Defence and will “mobilise the private sector to help face down global threats.”
In a show of support for this approach, today’s announcement comes as defence companies announce major new investments and facilities, helping boost jobs and growth across Britain.
- Helsing – Europe’s largest defence AI company will announce plans to mass-produce thousands of a new AI-enabled drone, as part of its £350 million investment into the UK over the next five years.
- BAE Systems – is set to announce thousands more recruits next year alongside a major new investment in skills.
- Babcock – is set to announce almost 1500 new early career roles with graduate and apprenticeship opportunities to support UK defence over the coming year.
- Rolls-Royce – have opened a new office in Glasgow which will play a crucial role in attracting skilled employees and supporting regional growth. The 120 new jobs it creates will support the delivery of major UK submarine programmes.
Minister for Defence Procurement and Industry Maria Eagle will also visit Barrow-in-Furness today where BAE Systems’ skilled workers are building the UK’s new nuclear submarines and will benefit from the further investment.
The new Government is seeking to address some of the problems of the past which have held back growth in the defence sector, including inefficient spending, skills shortages, a lack of focus on exports and long-term partnerships. The Government will deliver for British businesses and the public through this step-change in approach.
At the centre of the strategy is the Government’s growth mission – bringing benefits to every region and nation in the UK. The defence sector already supports 1 in 60 jobs in the UK – 434,000 good, well-paid jobs, with the majority (67%) outside London and the Southeast.
Defence Secretary, John Healey MP said: “Our defence sector should be an engine for jobs and growth, strengthening our security and economy. That requires a defence industry that is better and more integrated – one that can keep our Armed Forces equipped, innovating at a wartime pace, and ahead of our adversaries. We will develop this new Defence Industrial Strategy with industry, with innovators and with workers. We will mobilise the private sector to help face down global threats, direct more public investment to British businesses and create jobs and growth in every nation and region of the UK. National security is the foundation for national stability and growth. We are sending a signal to the market and to our adversaries: with a strong UK defence sector we will make Britain secure at home and strong abroad. The new strategy will be shaped with the defence industry, identifying opportunities to innovate at speed, with the resilience to deter aggression by adversaries, able to seize the opportunity presented by the technologies of the future, while growing the UK’s share of the exports market.
Kevin Craven, CEO of ADS Group said: “The Government underlining the importance of the defence sector to the UK economy is hugely welcomed, particularly the sector’s inclusion as a high priority area for growth. ADS has consistently convened meaningful engagement between our members, MOD and wider stakeholders, and we look forward to continuing this in the latest phase. Industry greatly appreciates the opportunity for deep involvement with these processes. To deliver the right capability to support the UK’s ability to deter, it is pivotal that we continue to contribute to military planning activities. The Government is also appointing a fully-fledged National Armaments Director. Its aim is to ensure the armed forces are properly equipped to defend Britain, to build up the British defence industry and to crack down on waste. The government’s primary mission is to secure the highest sustained growth in the G7 – with good jobs and productivity growth in every part of the country – and with more than 200,000 UK jobs supported through spend with the defence industry, the new strategy will have a key role to play in this.”
The strategy was a manifesto pledge and is expected to be published in the first half of 2025. The government has committed to spending 2.5% of GDP on defence and will set a clear path in the Spring.
Under this government, there has been renewed confidence in the UK defence industry, including Rheinmetall committing a new factory which will see the UK manufacture artillery gun barrels for the first time in 10 years, using British steel produced by Sheffield Forgemasters.
The last Defence Industrial Strategy was published in 2021, before Russia’s full-scale invasion of Ukraine. The new Defence Industrial Strategy will align with the Strategic Defence Review.
The Defence Industrial Strategy is commissioned by the Defence Secretary and will be the sector plan for defence in Government’s wider industrial strategy. The Ministry of Defence and The Department for Business and Trade will work to ensure the Defence Industrial Strategy and upcoming Trade Strategy is complimentary.
RECORD £1 BILLION SKILLS INVESTMENT AS BAE SYSTEMS SET TO RECRUIT THOUSANDS MORE APPRENTICES AND GRADUATES IN 2025
To coincide with this announcemet BAE Systems made a major announcement about jobs and investment
BAE Systems is projecting a record number of young people in training in 2025 and the Company’s investment in education and skills is expected to reach £1 billion since the start of the decade.
The Company is recruiting for more than 2,400 new apprentice, undergraduate and graduate roles in 2025, which will result in a record number of 6,500 in training, making up approximately 15% of its UK workforce.
An anticipated £230 million investment in education and skills next year will take the total amount spent on upskilling people across the UK since 2020 to beyond £1 billion.
The funding, which has grown year-on-year since the Covid-19 pandemic, is spent primarily on UK apprentices, graduates and experienced employees, as well as education outreach, helping to build on the Company’s reputation as a leader in growing the nation’s industrial skills base, whilst also contributing to local and national economic growth.
Our investments have enabled BAE Systems to open its third multi-million pound skills academy in Glasgow this year, which expands on its established academies in Barrow and Samlesbury.
The Company also has a range of partnerships with colleges, universities and social mobility champions, like Movement to Work.
Charles Woodburn, Chief Executive, BAE Systems, said: “As the UK’s largest defence company, we rely on the skill and ingenuity of those who deliver our programmes, which is why it’s so crucial we continue to invest in our people.
“With thousands of roles open for application across the length and breadth of the country and our exciting high technology programmes, there has never been a better time to embark on a new career with us.”
John Healey, Secretary of State for Defence, said: “BAE Systems are a leading light in the UK defence industry and play a crucial role in keeping the men and women of our Armed Forces equipped on the front line.
“Defence offers exciting careers and this investment is a vote of confidence in the UK as a leader for cutting-edge employment, creating highly skilled jobs across the UK.
“National security is the foundation for national stability and growth. Our Defence Industrial Strategy will ensure our defence sector is an engine for jobs and growth, strengthening our security and our economy.”
Almost 1,300 apprentices are expected to join BAE Systems next year, with the majority of roles based in the North of England alongside opportunities across the South of England, Scotland and Wales.
BAE Systems also plans to hire more than 1,100 graduates and undergraduates, giving each cohort the chance to work on some of the world’s most advanced technology programmes including the Global Combat Air Programme and the UK’s next-generation submarines known as SSN-AUKUS.
The Company’s award-winning early careers schemes are vital to developing the talent pipeline needed to deliver critical national security capability. They also help to build the next group of talented industrial leaders, with many former apprentices and graduates going on to become leaders in the Company.
Francesca Di Mascio, 27, first year Electrical Engineering Apprentice at BAE Systems’ Naval Ships business, said: “I joined BAE Systems because job security is important to me and I wanted to work in a hands-on environment. The job was everything I’d hoped for plus the extra benefit of being part of the community in the shipyard gives me an extra sense of purpose. Doing an apprenticeship is a great opportunity to earn while you learn and this is the first time I’ve really felt valued after joining a business, I’d definitely recommend anyone thinking about applying to go for it!”
With more than 60 programmes available, there are opportunities at every level, from steelwork and engineering to cyber security, software development, finance and project management.
In order to maximise its talent pool, BAE Systems is committed to creating a diverse and inclusive workplace, which is vital in developing a future skills and talent pipeline. This year, 30% of the Company’s new apprentice starters are female, compared to 15% in the UK engineering community. One in three of its new graduate starters this year came from ethnic minority backgrounds.
The closing date for apprentice applications is 28 February 2025. There are multiple graduate intakes throughout the year, including January, April, July, August and September. Find out more and apply: baesystems.com/earlycareers
Early careers opportunities are just one part of the Company’s wider recruitment drive. BAE Systems is currently recruiting thousands of skilled workers from steelworkers to data scientists across the UK. Find out more and apply: baesystems.com/experiencedprofessionals
Spending data on skills and training in the UK*:
*Future spending figures are based on business forecasts. Actual figures may differ from forecasted ones.
2020 – £92m
2021 – £117m
2022 – £180m
2023 – £233m
2024 – c.£230m (conservative forecast)
2025 – c.£230m (conservative forecast)
BATTLESPACE Comment: It has ben a long time coming but at last, after years of lobbying from ADS, MakeUK Defence, BATTLESPACE and others, the governemnt is now looking at a ‘Buy UK First’ strategy to boost jobs and indigenous SME caapbility.
(Source: https://www.gov.uk/)