December 12, 2024
UK plans defence industrial strategy next year, seeking growth boost #UKFinance

UK plans defence industrial strategy next year, seeking growth boost #UKFinance

CashNews.co

LONDON (Reuters) – Britain said it would publish an industrial strategy for defence in late spring 2025, aimed at strengthening the country’s national security, properly equipping its forces and ensuring military-focused companies help drive economic growth.

Defence minister John Healey on Monday said the threats facing Britain were growing, given war in Ukraine, conflict in the Middle East and rising geopolitical instability.

Britain’s government was elected in July on a promise to improve growth, and sees the defence sector as a driver of well-paid skilled jobs.

Monday’s statement said it wanted the strategy to focus on long-term partnerships with home-grown businesses to help power exports.

“Our defence sector should be an engine for jobs and growth, strengthening our security and economy,” Healey said.

Healey said the new government would seek to address past problems such as inefficient spending, skills shortages and a lack of focus on exports.

Conscious of the threat to the armed forces, the government said it would “war game” or play out scenarios alongside industry, looking at how to manage supplies to a front line should there be supply chain disruption and intense fighting.

The government has already said it plans to raise defence spending to 2.5% of GDP from the current level of 2.3% and would set out a path to doing so in the spring.

The new defence industrial strategy will align with a strategic defence review also expected to be in published in spring, the statement on Monday said.

(Reporting by Sarah Young; editing by William James)

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