Chancellor Rachel Reeves has pledged to “boost Britain’s defence industry and to make the UK a defence industrial superpower”. During her Spring Statement the Chancellor added: “We will spend a minimum of 10% of the Ministry of Defence’s equipment budget on novel technologies including drones and AI (artificial technology) enabled technology.
“Driving forward advanced manufacturing production in places like Glasgow, Derby and Newport, creating demand for highly-skilled engineers and scientists, and delivering new business opportunities for UK tech firms and start-ups.”
Elsewhere the chancellor confirmed allocating an additional £2.2 billion to the Ministry of Defence’s budget for next year.
She said: “Today I confirm that I will provide an additional £2.2 billion for the Ministry of Defence next year, a further down payment on our plans to deliver 2.5% of GDP. This additional investment is not just about increasing our national security, but increasing our economic security, too.”
Ms Reeves also told the Commons the Office for Budget Responsibility forecasts that Labour’s planning reforms will increase GDP permanently by 0.2% in 2029/30, representing an additional £6.8 billion and pushing housebuilding to a “40-year high”.
