Defence Spending Commitments to Create 85,000 Jobs by 2035

Strategic Insights -

A leading trade body has predicted that defence spending commitments in the UK will create a total of 85,000 jobs across the sector over the next 10 years. This projection is based on the UK meeting NATO's target to boost defence spending to 3.5% of GDP by 2035. The defence sector's contribution to the UK economy is expected to rise by 50% in gross value added (GVA) to £23.5 billion by 2035, according to the ADS trade body. The government is also rolling out plans to attract private sector investment and boost small and medium-sized businesses in the UK defence sector.

Key Takeaways:

  • Defence spending commitments in the UK are predicted to create 85,000 jobs across the sector over the next 10 years.
  • Meeting NATO's target to boost defence spending to 3.5% of GDP by 2035 will add to the current 182,000 jobs available in the industry.
  • The defence sector's contribution to the UK economy is expected to rise by 50% in gross value added (GVA) to £23.5 billion by 2035.
  • The government plans to inject £250m into local authorities under "growth deals" to support small and medium-sized businesses in the UK defence sector.
  • Initial selected locations for the "growth deals" include Plymouth and South Yorkshire, both of which are home to major defence industries.
  • Defence sector CEO Kevin Craven emphasizes the need for "value for money" in defence spending and highlights the sector's role in driving social mobility and prosperity.
  • William Bain, head of trade policy at the British Chambers of Commerce, stresses the importance of long-term investment in defence to develop stronger supply chains and more efficient procurement plans.

Statistics:

  • 85,000 jobs to be created across the defence sector over the next 10 years (ADS analysis).
  • Current 182,000 jobs available in the industry (ADS analysis).
  • £23.5 billion expected contribution of the defence sector to the UK economy by 2035 (ADS analysis).
  • 50% rise in gross value added (GVA) expected from the defence sector by 2035 (ADS analysis).
  • £250m to be invested in local authorities under "growth deals" to support small and medium-sized businesses (government strategy paper).
  • NATO target for defence spending to reach 3.5% of GDP by 2035.

Sources:

  • "UK defence tech pivots from taboo to city darling" (City AM, 2022).
  • "Retail investors cool on AI and pile into defence sector" (City AM, 2022).
  • Government strategy paper on driving growth in the defence sector.
  • ADS analysis on defence spending commitments and job creation.
  • Interview with Kevin Craven, CEO of ADS.
  • Interview with William Bain, head of trade policy at the British Chambers of Commerce.