Defence Industrial Strategy 2025: Economic Growth and Job Creation

Lord Forbes of Newcastle Excerpts

Tuesday 3rd March 2026 Lords Chamber

Asked by

[Lord Forbes of Newcastle]

To ask His Majesty’s Government what assessment they have made of the potential impact of the Defence Industrial Strategy 2025 on promoting economic growth and job creation in English regions and devolved nations.

[The Minister of State, Ministry of Defence (Lord Coaker) (Lab)]

My Lords, investment in defence is investment in jobs and growth in every nation and region in the UK. That is why we have invested £773 million in the defence industrial strategy, which will position the UK as a global leader in defence technology by backing UK businesses and harnessing the sector’s strengths. There are five defence growth deals, revamping our procurement framework and launching an ambitious skills programme. The defence industrial strategy will create new good-quality and highly skilled jobs across the UK and drive economic growth.

[Lord Forbes of Newcastle (Lab)]

My Lords, in warmly welcoming the Government’s commitment to significantly increasing defence expenditure and the opportunity to use this lever to promote economic growth, especially through the development of dual-use technologies and extended supply chains, I draw my noble friend the Minister’s attention to the fact that only seven of 14 mayoral combined authorities have so far produced local growth plans that explicitly name defence and national security as priority growth sectors for their area. Does he share my view that better connections between combined authorities and the Ministry of Defence are required to ensure that there are real and tangible economic benefits in every nation and region to increase defence spending? Will he ensure that His Majesty’s Government engage systematically and effectively with regional leaders to ensure that this welcome investment creates the maximum number of jobs possible?

[Lord Coaker (Lab)]

I agree with that. It is really important for the defence industrial strategy that we liaise with all the devolved Governments and, as my noble friend says, with local devolved councils and mayoral authorities. Kim McGuinness is the Mayor of the North East, in my noble friend’s part of the country, and I know of the work that he has done with local authorities. It is essential that we work with them to deliver the economic growth that we want across all the regions of England and nations of the UK.