The figures add an industrial dimension to Britain’s planned expansion of military investment. The government is seeking to use higher defence budgets to strengthen domestic production, widen the supply chain and direct more spending into regional economies.
“We cannot strengthen our deterrence without having a strong, sovereign defence industry here at home,” Defence Secretary Wes Streeting said. “That’s why we are backing Britain, using the biggest sustained increase in defence spending since the Cold War to boost jobs and skills at home and to build the capability and technology we need to keep us safe in a more dangerous world.”
Spending in the electronics sector climbed 33%, reflecting the growing role of advanced systems in military procurement. The Ministry of Defence said greater domestic capacity would help industry supply the equipment and resilience required by the armed forces.
Northern Ireland recorded the largest regional percentage increase, with defence spending rising 63%, or £190 million. The East of England received an increase of 24.7%, equivalent to almost £400 million, while spending in the East Midlands rose 21%, or nearly £350 million.
Direct spending with small and medium-sized enterprises increased by £100 million to £1.3 billion a year. The rise supports the Defence Industrial Strategy’s goal of giving smaller companies a larger role in the supply chain and in delivering military capability.
Defence spending with UK industry supported an estimated 274,000 jobs in 2024/25, according to the latest available employment figures. That was an increase of 26,000 roles from the previous year.
The government’s Defence Investment Plan commits £298 billion to defence over the next four years. Ministers intend to use that funding to sustain procurement across British industry while linking military readiness more closely to jobs, skills and national economic renewal.
