On September 8, 2025, the United Kingdom took a bold step toward reshaping its defence landscape and invigorating regional economies, as Defence Secretary John Healey unveiled the much-anticipated Defence Industrial Strategy (DIS) during a visit to the veteran-founded technology firm Rowden in Bristol. The new strategy, underpinned by a £250 million investment over the next five years, signals a major commitment to innovation, job creation, and economic growth across the nation’s four corners.
The launch, held at Rowden’s new 20,000 square foot facility in Bristol, was more than just a ribbon-cutting. It marked the beginning of a concerted effort to make the UK “the best place in the world to start and grow a defence firm,” as Healey put it. The Defence Secretary emphasized, “The Defence Industrial Strategy will make defence an engine for growth across the UK, backing British jobs, British industry and British innovators.” According to BBC, Healey stressed that the new approach would “drive an increase in defence skills, SMEs and jobs across all four nations.”
Central to the strategy are five new Defence Growth Deals, each designed to leverage the unique industrial strengths of regions across England, Wales, Scotland, and Northern Ireland. In Healey’s words, “Defence Growth Deals offer a new partnership with UK Defence to build on industrial and innovation strengths that regions already hold.” The government expects these deals to unlock the potential of local economies, fostering collaboration between local authorities, businesses, academia, and the defence sector itself.
Chancellor Rachel Reeves, speaking on the occasion, underscored the government’s vision for “good jobs paying decent wages in Cardiff, Belfast, Glasgow, Sheffield, Plymouth and beyond.” She added, “Through Defence Growth Deals we will unleash the power of local economies while securing our country – building an economy that works for working people, in every part of this country, just as our Plan for Change promised.”
The government’s ambitions are nothing short of sweeping. Early analysis suggests that up to 50,000 new defence jobs could be created by 2035, as a result of increased defence spending and targeted investment. These positions will range from highly skilled engineering roles to apprenticeships for young people, ensuring that the so-called “defence dividend” is felt in communities from Cornwall to the Highlands. According to official figures cited by The Herald, Scotland already employs more than 11,000 people in Ministry of Defence industry roles, a number set to rise as the new strategy takes hold.
Each of the five initial Defence Growth Deals has been carefully tailored to the strengths and needs of its region. In Plymouth, for example, a £4 billion naval investment over the next decade will support the city’s role as the UK’s national centre for marine autonomy, driving innovation in maritime autonomous systems. South Yorkshire, long recognized for its prowess in advanced materials and steel production, will become a hub for producing specialist components for submarines and weaponry. Wales is poised to advance its leadership in unmanned aerial vehicle (UAV) development and testing, with support for companies like Tekever and research centers such as the Snowdonia Aerospace Centre.
Scotland stands to benefit from significant investment in its space, maritime, and technology sectors. The government hopes to forge a long-term partnership with the devolved Scottish government, prioritizing collaboration with business and research institutions. Scottish Secretary Douglas Alexander called the strategy “a real boost for Scotland’s economy and [a way to] create highly skilled jobs for years to come – this is the defence dividend.” Recent defence contracts, such as the £10 billion frigate order for the Norwegian navy to be built on the Clyde, and a £1 billion deal for four Type 31 frigates for the Danish navy at Rosyth, underscore Scotland’s pivotal role in the UK’s defence future.
Northern Ireland, meanwhile, will capitalize on its reputation as a cybersecurity hub and its strengths in dual-use technologies. The region is home to firms like Thales and Harland & Wolff, as well as Queen’s University Belfast’s Centre for Secure Information Technologies, all of which are expected to play a central role in future growth and innovation. According to ADS analysis, the combination of government and private investment in these regions is expected to attract further private capital, ensure long-term sustainability, and support the UK’s Armed Forces.
The Defence Industrial Strategy is not just about economics—it’s also a response to a rapidly changing global security environment. The government has cited the ongoing war in Ukraine as a stark reminder of the need for rapid innovation, industrial resilience, and the ability to replenish and resupply at speed. As Chancellor Reeves noted, “Innovation and industrial power are central to deterrence and decisive factors in war.” Ministers argue that by strengthening the UK’s industrial base, the DIS will ensure that the country can respond rapidly to future challenges, drawing important lessons from recent conflicts.
Financially, the strategy is underpinned by a historic increase in defence spending. The government has committed to raising defence expenditure to 2.6% of GDP by 2027, with the ambition of reaching 3% in the next Parliament. According to The Herald, Prime Minister Sir Keir Starmer has pledged to meet a new NATO target to spend 5% of GDP on national security by 2035, with 3.5% earmarked for core defence and a further 1.5% for resilience and security. This surge in spending is expected to drive demand for skilled workers, boost local economies, and cement the UK’s status as a global leader in defence innovation.
Political debate has not been absent from the conversation. In Scotland, the Prime Minister has urged the devolved government to drop its opposition to nuclear weapons, citing the challenging international landscape and threats from Russia, China, and North Korea. The Scottish Government, in response to the conflict in Ukraine, recently removed its ban on allocating public money to firms involved in manufacturing munitions—a move that signals a pragmatic shift in policy amid growing global uncertainty.
Looking ahead, the specifics of each region’s Defence Growth Deal will be developed in close collaboration with local governments, industry, and academic partners. The government’s Plan for Change is designed to ensure that the benefits of increased defence spending are felt not just in London or the South East, but in every part of the country. By harnessing local expertise, driving innovation, and supporting job creation, ministers hope to deliver a strategy that is as robust as it is inclusive.
As Defence Secretary Healey put it, “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.” With the Defence Industrial Strategy now underway, the country is set for a period of significant transformation—one that promises not only to bolster national security, but to deliver tangible benefits for working people across the United Kingdom.
