Wales has received £1.1 billion in defence spending in the last year, directly supporting 3,900 Welsh jobs across a range of sectors.
A newly-published UK Defence Footprint booklet provides figures on how defence spending is actively contributing to employment across the UK.
The latest UK Government figures highlight that Wales received £1.1 billion in defence spending in the last year, representing £340 per person across Wales.
The figure of £1.1 billion represents Ministry of Defence spending with industry and commerce in Wales in 2024-2025. Of that, £527 million was spent with the “top industry sector” in Wales – weapons and ammunition, including armoured fighting vehicles. £42 million was made up of expenditure with SMEs.
The UK Defence Footprint booklet says:
“A number of defence strategic suppliers have established locations across Wales. General Dynamics has its UK headquarters near Caerphilly and specialises in armoured fighting vehicles from their base in Merthyr Tydfil. Airbus has a site in Broughton focusing on wing design and manufacture, and a space facility in Newport which leads cyber security research initiatives.
“Thales UK provides digital trust and cyber resilience from their base in Ebbw Vale and QinetiQ provides testing of aerial systems at their base in Aberporth. BAE Systems in Glascoed supplies approximately 80% of the ‘general munitions’ consumed by UK Armed Forces for training and front-line operations. BAE Systems staff are also located at RAF Valley, providing support for Hawk trainer jets. MOD Sealand is a nominated UK repair depot for the F-35 Lightning II aircraft.”
Phil Jones, Chief Executive of Business in Focus, said:
“I welcome this investment news from the UK Government and urge that even more be done. Our national defence, security and resilience is under direct, constant and serious threat from state and non-state actors. Meeting that threat requires a level of national awareness, investment and collective effort not seen since the Cold War.
“This is a call to action for our brilliant innovators, manufacturers and service providers. SMEs in Wales can play a big part. Business in Focus' expert defence advisors are here to help them gain that vital competitive advantage.”
Joshua Miles, Head of FSB Wales, said:
“We welcome this defence investment, which could support many skilled jobs across Wales and holds immense potential to drive innovation in manufacturing, from armoured vehicles and drones to cyber security hubs, while bolstering supply chains and creating a ripple effect of economic growth. Defence spending is not just securing our nation, it’s powering high-quality careers, supporting local businesses, and driving prosperity for communities and families across Wales.
“To fully unlock this potential, we urge UK Government to work with businesses across Wales to ensure this funding is used effectively, making a transformative difference to them and our economy.”
Secretary of State for Wales Jo Stevens said:
“The defence industry is a vital part of the Welsh economy and provides thousands of high-quality jobs across every part of the country.
“Each of the Ministry of Defence's top five suppliers has a footprint here so Wales is well placed to benefit from the UK Government’s increase in defence spending.
“Our number one mission is kickstarting economic growth and by investing in the defence sector we are safeguarding our national security, creating new jobs and putting more money in people’s pockets.”
Minister for Defence Readiness and Industry, Luke Pollard MP, said:
“Our record uplift in defence investment will ensure our forces have the kit they need to fight, ensuring we are secure at home and strong abroad.
“By making defence an engine for growth across the country and supporting the Government's Plan for Change, the defence dividend is benefitting Welsh jobs, communities and businesses.
“Wales' expertise in advanced manufacturing and cyber security makes it an essential part of Britain's defence ecosystem, delivering prosperity for communities across the country.”
