Government spending in the UK defence industry grew by 6% in real
terms to £31.7 billion, according to latest figures for 2024/25
published today.
Working people will feel safer and see the economic benefits of
the record investment in defence the Government has delivered,
new figures (MOD regional expenditure
with industry 2024/25 - GOV.UK) reveal.
In a powerful boost to the UK economy, the figures which cover
the 2024/25 financial year, show a 6% rise in real terms
expenditure bringing the total to £31.7 billion.
In an increasingly unstable and volatile world, this includes a
21% uplift to investment in the Weapons and Ammunition sector
after inflation, so the UK is resilient and responsive to any
challenge.
The figures show how the Government is making defence an engine
for growth, with increased investment creating jobs and
opportunities in communities across the country to raise living
standards and put more money in working people's pockets.
The figures show an exceptional increase from the previous year,
representing the highest level of defence investment in UK
industry for over a decade. This substantial investment
translates to £460 for every person living in the UK, up from
£440 the previous year.
The benefits will be felt across the UK, with Yorkshire and
Humber seeing the biggest percentage rise in spend, increasing by
30%, with London (18%) and the North West (15%) also seeing big
increases.
Defence Secretary said:
This record investment shows how we are making defence an engine
for growth, supporting jobs and prosperity for British working
people and boosting businesses across the United
Kingdom.
These new figures show how the defence dividend from our record
investment is benefitting working people across the UK. It
follows the launch of our Defence Industrial Strategy this week,
which will provide the resilient industrial base that we need for
the future.
This record spending directly supports the Government's Defence
Industrial Strategy, launched this week, which focuses on
enabling the building of a resilient supply chain and supporting
innovation across the defence sector.
Small and medium-sized enterprises continue to benefit from
defence investment, with direct defence spending supporting
innovation and growth in businesses across the UK. This reflects
the Defence Industrial Strategy's commitment to diversifying the
supply chain and ensuring smaller companies can contribute to
Britain's defence capabilities whilst driving local economic
growth.
Much of the Ministry of Defence's global expenditure remains
anchored in the UK, ensuring that taxpayers' investment in
defence translates directly into British jobs, skills, and
economic growth. This includes both direct payments to UK
industry and indirect spending through international agreements
where work subsequently takes place in Britain.
