Reeves: Stepping up on security is our duty
|
Working people across Britain and Europe are depending on us to
shore up their security, Chancellor Rachel Reeves told her fellow
European finance ministers today. In a meeting in Washington DC,
co-chaired with Polish Minister of Finance, Andrzej Domański, the
Chancellor set out the British Government's call to better
coordinate European efforts to increase defence spending, grow our
defence industrial base, and get more for our money. The
Chancellor told the meeting...Request free trial
Working people across Britain and Europe are depending on us to shore up their security, Chancellor Rachel Reeves told her fellow European finance ministers today. In a meeting in Washington DC, co-chaired with Polish Minister of Finance, Andrzej Domański, the Chancellor set out the British Government's call to better coordinate European efforts to increase defence spending, grow our defence industrial base, and get more for our money. The Chancellor told the meeting that it is now time for the UK, European allies, and the EU to work together more closely than ever to mobilise our collective resources to protect our shared security and prosperity. This comes as Britain's growing domestic defence industry helps to secure the UK's industrial future, including BAE Systems announcing it will ramp up explosives production – with a sixteen-fold increase in artillery shell production- to meet the requirements of Britain and its allies. The UK's Armed Forces and defence industry currently support 430,000 high-paid and high-skilled jobs. £1 in every £10 spent by the Ministry of Defence's equipment procurement will be spent on novel technologies, such as drones and AI, increasing defence capabilities and spurring on growth and opportunity for British companies. Chancellor of the Exchequer, Rachel Reeves, said: “The world has changed and the UK and its European allies must step up and meet the moment. “Merely increasing spending is not enough. In an uncertain and changing world we must be strategic in where and how we invest – to secure our industrial future, meet our NATO commitments, and deliver the security for working people that supports our Plan for Change.” The UK Government's Plan for Change will see an extra £2.2 billion spent on defence in 2025/2026 and defence spending increased to 2.5% of GDP by 2027, with an ambition to reach 3% in the next parliament.
Increased defence spending will help UK companies develop
advanced technologies that give the UK's armed forces a winning
edge. Recent investments include:
The Chancellor also welcomed the launch of a new UK Defence and Economic Growth Task Force - led by the Confederation of British Industry (CBI) and consulting firm Oliver Wyman, and jointly chaired by the Chancellor and Secretary of State for Defence. The Task Force will generate specific and implementable recommendations for the Chancellor and Defence Secretary on how to ensure that further investment in defence drives economic growth. Secretary of State for Defence, John Healey, said: "National security is the bedrock of a successful economy and the government's Plan for Change. The extra £5 billion for our Armed Forces this financial year and the commitment to reach 2.5% GDP in 2027 will make Britain stronger and safer in a more insecure world. “It will also ensure defence is an engine for growth, creating good jobs across the nation as we develop innovative and cutting-edge technologies. We are working with industry and our allies and partners to deliver for defence and invest in the outstanding men and women who keep our nation safe.” Rain Newton-Smith, CEO, CBI said: "In these turbulent times, the government is right to position the defence sector as a key engine of growth pivotal to ensuring our national and economic resilience. "Increases in defence spending bring benefits to UK investors, manufacturers and the supply chains that are routed in our regional communities. While the spillover effect from investment in rapid technological advancements will drive innovation that can deliver huge benefits back into the British economy "I am delighted to be involved in this taskforce and its work to ensure that the government's commitment to increased defence spend translates into an opportunity to not only grow the UK's defence and security capability, but to also drive sustainable economic growth across the country.” Notes to editors 15 defence, finance, and consulting businesses have joined the CBI-led UK Defence and Economic Task Force to date. The Task Force will be led by Rain Newton-Smith, CEO, Confederation of British Industries and Lisa Quest, Managing Partner UK & Ireland, Oliver Wyman, and jointly chaired by the Chancellor and Secretary of State for Defence. Members include:
Lisa Quest, Managing Partner UK and Ireland, Oliver Wyman: “The UK Defence Industry will play a critical role in our society, protecting our values and promoting peace. “Creating the conditions for accelerated capital flows to defence and dual-use technologies will drive growth across national supply chains and foster innovation across the economy. “The co-creation of recommendations to mobilise the right combination of public, private and institutional capital will be key to unlocking wider security, resilience and growth objectives.” Marc Wietfeld, CEO, ARX Robotics: “The UK is a cornerstone of European defence capabilities and a powerhouse of innovation. “Strengthening British industry through advanced robotics and AI isn't just good economics—it's a strategic imperative.” Ned Baker, UK Managing Director, Helsing: “Helsing is investing £350m into the UK to modernise our Armed Forces and help grow the economy. The impact of such investments are multiplied when industry and government work together in partnership. Helsing is proud to join the taskforce and committed to delivering cutting edge Artificial Intelligence for our national security and prosperity.” Ricardo Mendes, CEO, TEKEVER: “At TEKEVER, we believe that strengthening national defence and fostering economic growth go hand in hand. The creation of this Taskforce represents a vital opportunity to bring together government, industry, and finance to accelerate innovation, scale investment, and build a more resilient and competitive defence ecosystem in the UK. We're proud to contribute to shaping a forward-looking strategy that delivers both security and prosperity.” Kerry Baldwin, Managing Partner, IQ Capital: “In these increasingly complex times, the work of this vital taskforce will be essential to placing defence at the heart of the industrial strategy and to deliver growth across defence strongholds such as the Southwest. Identifying and prioritising solutions to procurement to enable adoption of innovative technologies will enable greater private capital to flow to power a modern defence force. Increasingly innovators are turning to creating solutions for defence, and the recent government announcements will encourage both innovators and investors and ensure that the UK can build upon its existing strengths and become a defence industry superpower.” Rob Hales, Managing Director of JFD Global: “We are honoured to support the Taskforce at a critical moment for UK defence and the defence industry. This represents a generational opportunity to deliver defence advantage to the UK and its international partners, while creating high-quality jobs through growth. Our engineering, manufacturing and services hubs in Aberdeen, Glasgow and Portsmouth deliver mission-critical equipment and services to the UK armed forces, and act as centres of excellence driving our international growth. We are looking forward to working with the Taskforce to realise this potential.” Kata Escott, Managing Director and Head of Country, Airbus Defence & Space UK: “I'm honoured to join this important initiative, which recognises the critical role of the defence industry in boosting UK economic growth and strengthening our sovereign capabilities. As one of the UK and Europe's leading defence and aerospace manufacturers, Airbus supports the opportunity this work presents to forge a closer partnership between government, industry and investors. A robust defence industrial base is fundamental to our national security and long-term prosperity.” David Lockwood, CEO, Babcock International: “Defence is a major driver of UK growth, but to fully realise its potential we need increased collaboration between Government, Industry and Investors. This is a pivotal time for defence, so I'm delighted to join this Taskforce as we seek to achieve that.” Peter Lovell, Global Head of Defence and Security at PA Consulting: "I'm delighted to join the Defence & Economic Growth Taskforce to help the Ministry of Defence and HM Treasury unlock the levers of government needed to match UK defence capability to evolving threats. To succeed, the taskforce will require a bold approach to encouraging new sources of investment and reframing public-private cooperation. By investing in defence, public and private funders will supercharge the sector into an engine of growth. And the rewards will be much broader than defence and security, unlocking social and economic prosperity to ensure a secure future for the UK.” “To build the UK's defence industrial base, we must recognise that different segments require tailored approaches and financial options. That's how we'll achieve the long term, sustainable growth and security we are all working for.” The UK's armed forces continue to work with allies on operations and exercises across the globe. UK fighter jets operating with allies in defence of NATO's Eastern flank intercepted two Russian aircraft flying close to NATO airspace as part of the UK's contribution to NATO's enhanced Air Policing in the region. Royal Air Force Typhoons, deployed alongside Swedish forces, made the interceptions within weeks of arriving in eastern Poland. The Royal Navy's flagship, the HMS Prince of Wales, set sail to the Pacific on Tuesday (22 April) as part of an eight-month deployment alongside ships and personnel from 12 other nations. 68% of the money spent on defence goes outside of London and the South East, ensuring that increased defence spending will have a positive impact across the UK's nations and regions. BAE's new artillery shell production lines are based in Glascoed, South Wales and Washington, North East England. |