Wales is set to receive a share of £250 million funding to support the growth of the defence industry.
The Wales Defence Growth Deal will harness Wales’ strengths in autonomy and aerospace, the UK Government said.
Five initial Defence Growth Deals will be created across Wales, England, Scotland, and Northern Ireland. They will identify areas with high growth potential and bring together industry, local and national government and academia to make sure that potential is realised.
Each Defence Growth Deal will combine defence and wider government investment to harness local sub-sector strengths, drive innovation, and deliver tailored support where needed, such as in skills, housing, and planning, to boost local economies, attract private investment, and ensure long-term sustainability, the UK Government said.
It added that Wales will have its Defence Growth Deal unveiled in the coming months, saying that it would work with the Welsh Government and other key stakeholders.
Areas of focus are expected to include:
- Skills – addressing regional workforce needs and future capability requirements;
- Innovation – supporting research, development, and adoption of new technologies;
- Procurement – aligning local supply chains with Defence priorities;
- Investment – targeting funding to unlock economic and strategic value;
- Partnership – fostering impactful relationships that deliver for the people of Wales.
The UK Government said that Wales is “rapidly establishing itself as a powerhouse in unmanned aerial vehicle development and autonomous systems”, with innovative companies like Tekever in Pembrokeshire leading the charge in cutting-edge UAV technology.
The nation boasts world-class testing facilities including the Snowdonia Aerospace Centre, providing crucial infrastructure for defence innovation, while academic excellence is driven by institutions such as the Welsh Centre for Defence Autonomy, it added.
The Defence Growth Deals are being created as part of the UK Government’s Defence Industrial Strategy (DIS), launched by Defence Secretary John Healey on a visit to defence technology firm Rowden in Bristol.
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
“Wales excels across the defence sector, in areas including cyber security, opto-electronics, land systems, training and testing, so we are well placed to seize the opportunities that lie ahead in developing the defence industrial base here in the UK and in Europe.
“We have worked closely with the UK Government in shaping the UK’s Modern Industrial Strategy and ensuring that Wales is pivotal to its delivery.
“This is a government that is ambitious about Wales’ future prosperity. The Defence Industrial Strategy, and the pioneering Wales Defence Growth Deal, will be key as we strive to drive further economic growth in high value sectors for communities across Wales. I also look forward to promoting Wales’ considerable capabilities in the defence sector at DSEI this week.”
Secretary of State for Wales, Jo Stevens said:
“This investment in defence will bring a real boost for Wales’ economy and support highly skilled jobs for years to come – this is the defence dividend.
“Wales has an innovative and thriving defence sector with a presence in every part of the country. With UK Government working alongside Welsh Government and industry, this strategy will help ensure the sector goes from strength to strength.”
Defence Secretary John Healey MP said:
“The Defence Industrial Strategy will make defence an engine for growth in Wales, backing jobs, industry and innovators.
“Defence Growth Deals offer a new partnership with UK defence to build on industrial and innovation strengths that regions already hold. Together we aim to drive an increase in defence skills and jobs across Wales.
“We want to make the UK the best place in the world to start and grow a defence firm and will put Britain at the leading edge of innovation.”
Chair of the Welsh Affairs Committee Ruth Jones MP said:
“The announcement that one of the first Defence Growth Deals will be in Wales is welcome recognition of the strength of our defence industry and the key role it can play in the Government’s overall strategy of bolstering our security in an uncertain world.
“The predecessor committee in the last Parliament described the industry as somewhat of an unsung hero of the Welsh economy, never fully embraced by the UK or Welsh Governments. It’s therefore vital that this announcement acts as a catalyst for Government at every level to provide the necessary support in terms of infrastructure and skills to ensure the huge potential we have in Wales is realised.”
The DIS will also address skills requirements in the sector, with a skills package containing a range of UK-wide measures aimed at attracting and retaining a skilled UK workforce.
This includes Destination Defence, a communications campaign aimed at raising the profile of a career in defence, defence presence on the UCAS website, the graduate and apprenticeship clearing system, and a Defence Skills Passport which will enable greater career opportunity and skills growth within the defence ecosystem.
