The UK Government's Defence Investment Plan is set to boost Wales’ role as a site of testing and development of autonomous technology and uncrewed aerial systems by industry and the military.
Unveiling the long-awaited plan, Prime Minister Keir Starmer said it would be backed by £298 billion of investment across the next four years, including £15 billion of additional spending on top of last year’s Spending Review.
It will fund the £50 million Defence Growth Deal for Wales, announced earlier this year, which aims to secure Welsh businesses direct access to defence contracts by helping SMEs to grow.
Almost 4,000 people in Wales are currently already employed through MOD industry spending, as part of more than £1 billion already spent with the Welsh defence industry.
Major suppliers with established locations across Wales include General Dynamics in Caerphilly and Merthyr Tydfil, Airbus in Broughton and Newport, Thales UK in Ebbw Vale, QinetiQ in Aberporth and BAE Systems in Glascoed.
The Defence Investment Plan will see an increase in defence funding to almost £80 billion a year by 2029 and will see the UK's defence spending increase to 2.7% of GDP. In total, the spending uplift is expected to create nearly 60,000 extra direct and indirect UK industry jobs by the end of the decade, taking forecasted defence spending-related jobs supported in the UK to more than half a million, the UK Government said.
Secretary of State for Wales Jo Stevens said:
“Our Defence Investment Plan will shape the future of Wales’s defence industry for years to come, protecting and delivering skilled well-paid jobs across Wales.
“Wales is at the forefront of the autonomous defence technology that our Armed Forces need and this investment will drive growth in this key sector.
“We are building and investing in Welsh expertise so Wales will continue to lead the way in the UK’s defence.”
Key funding outlined in the Defence Investment Plan includes:
- More than £8 billion in the Global Combat Air Programme (GCAP) over the next four years, progressing the programme which will build a next-generation stealth fighter jet for the Royal Air Force, alongside Japan and Italy.
- More than £63 billion over the next four years to strengthen the UK’s nuclear deterrent and to fund Dreadnought and SSN-AUKUS submarines, a new warhead, and other nuclear work. Additionally, the UK will also purchase 12 F35As and join NATO’s nuclear mission.
- Including elements of the above nuclear investment in the first four years, £26 billion over the next decade in Project Royal Oak – the biggest naval base upgrade for over 45 years, including multi-billion-pound upgrades at Faslane, Portsmouth and Devonport.
- Over £5 billion for the next four years to fund a drone transformation for our Armed Forces. As part of this, £650 million will deliver inexpensive expendable autonomous systems including drones and uncrewed ground vehicles to “rapidly enhance the lethality” of the Army, Commando Force and Special Forces.
- Nearly £2 billion to integrate the Armed Forces through a new Digital Targeting Web. This aims to enable faster decision-making and speed in destroying identified targets and will be underpinned by world leading AI and software.
- £790 million over the next four years to enhance protection of the UK homeland and overseas bases from air, drone and missile threats. This will revolutionise command and control and buy new radars and sensors. The UK will also invest in Directed Energy Weapons, upgrade Sea Viper for its Type 45 destroyers, expand counter drone systems, and build a new Integrated Air, Space and Missile Defence Operations Centre.
- £11 billion on munitions and weapons to increase UK stockpiles. By 2030, the UK will have built at least six new energetics factories and increased national munitions production capacity.
- £900 million investment to drive efficiency and reform procurement, including a £500 million Transformation Fund to deliver productivity improving investments in AI and workforce transformation, as well as an initial £400 million contribution to setting up the Multilateral Defence Mechanism.
- £100 million for the Prime Minister’s Rapid AI Delivery Taskforce (RAID) to accelerate the deployment of AI-enabled capabilities into the hands of the Armed Forces.
The UK Government is investing £115 million to raise the UK’s defences against the threats from AI, including using AI to improve biosecurity and mitigate risks posed by autonomous AI agents.
The Prime Minister also announced a new £50 billion defence export facility established by UK Export Finance to support British defence firms to win contracts across the globe.
