Wales is to receive share of £250 million UK Government funding to forge long-term defence industry partnerships

Wales’s economy will be boosted by a pioneering defence programme - backed as part of a £250 million UK-wide investment - to improve collaboration, foster innovation and create jobs.
Defence Growth Deals are being created as part of a bold initiative to support the growth potential of the defence industry, underpinned by the historic increase in defence spending to 2.6% of GDP by 2027 and the ambition to hit 3% in the next Parliament.
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Utilising a share of a £250 million of money for UK Defence Growth Deals, Wales will forge a long-term partnership between the UK and Welsh Government, uniting business and research institutions in the nation to harness local expertise and resources in support of the UK Armed Forces.
Defence Secretary John Healey will today [Monday 8 September] announce the new venture as part of the launch of the Defence Industrial Strategy, which will make Defence an engine for growth.
Central to the DIS, the Defence Growth Deals will unlock growth, innovation, and job creation within key concentrations of defence and dual-use industry across the country, while bolstering the resilience of the UK’s defence industrial base.
Defence Secretary, John Healey MP said:
Chancellor Rachel Reeves said:
Latest statistics show that almost 4,000 people in Wales are already employed due to MOD industry spending, and this work will ensure every ounce of the sector’s potential is realised, driving economic growth and delivering on the Government’s Plan for Change.
Secretary of State for Wales, Jo Stevens said:
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
Wales is rapidly establishing itself as a powerhouse in unmanned aerial vehicle development and autonomous systems, with innovative companies like Tekever in Pembrokeshire leading the charge in cutting-edge UAV technology. The nation boasts world-class testing facilities including the Snowdonia Aerospace Centre, providing crucial infrastructure for defence innovation, while academic excellence is driven by institutions such as the Welsh Centre for Defence Autonomy.
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This Defence Growth Deal will harness Wales’s unique strengths in autonomy and aerospace, creating high-skilled jobs whilst positioning the nation at the forefront of next-generation defence capabilities that will keep Britain secure.
Wales will have its Defence Growth Deal unveiled in the coming months, working with the Devolved Governments and other key stakeholders, the Ministry of Defence is launching a bespoke growth deal which will harness the distinct opportunities and strengths in the nation.
Detailed policy proposals will be developed collaboratively; areas of focus are expected to include:
The Defence Industrial Strategy will also address skills requirements in the sector, with a skills package containing a range of UK-wide measures aimed at attracting and retaining a skilled UK workforce.
This includes Destination Defence, a communications campaign aimed at raising the profile of a career in defence, defence presence on the UCAS website, the graduate and apprenticeship clearing system, and a Defence Skills Passport which will enable greater career opportunity and skills growth within the defence ecosystem.
