Chancellor Rachel Reeves confirmed plans to increase defence spending as she vowed to make Britain a ‘defence-industrial superpower.’
The UK government will put an extra £6.4 billion into defence spending by 2027, Reeves said, confirming an additional £2.2 billion for the Ministry of Defence in the next financial year.
Vowing to make Britain a ‘defence-industrial superpower’, the Chancellor said a minimum of 10% of the MoD‘s kit budget will be spent on novel equipment, including drones and AI-enabled technology.
‘This additional investment is not just about increasing our national security, but increasing our economic security, too,’ she said.
The move will drive forward advanced manufacturing production in places like Glasgow, Derby and Newport, ‘creating demand for highly skilled engineers and scientists’, Reeves said.
The government will ring fence a £400 million budget within the Ministry of Defence for innovation, the chancellor said.
This budget will rise over time and will have a ‘clear mandate to bring innovative technology to the front line up to speed’, she added.
Reeves also announced that she and UK defence secretary John Healey will launch a new defence growth board as they roll out a fresh defence industrial strategy.
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