South Yorkshire to benefit from defence growth investment

The plan allocates £250 million over five years through a Defence Growth Deal aimed at boosting regional economies and creating jobs in defence-related sectors.

The region’s expertise in engineering, research, and materials production, including specialist steel for advanced maritime, land, and air systems, was cited as a key factor in its selection. Early estimates suggest rising defence spending could generate demand for up to 50,000 additional jobs across the UK by 2034/35.

The Defence Growth Deals will link businesses, local and national government, and academic institutions to foster innovation, support SMEs, and strengthen industrial capabilities. Similar deals will be established in Plymouth, Wales, Scotland, and Northern Ireland.

The strategy aims to make the UK a competitive location for defence companies while reducing regulatory barriers for domestic firms seeking to pursue export opportunities. It follows the announcement of a deal to supply Norway with five Type 26 frigates, valued at £10 billion and supporting more than 4,000 UK jobs.

Officials highlighted that the initiative is designed to build regional industrial resilience, respond to future defence challenges and expand high-skill employment opportunities in areas including South Yorkshire, where companies can leverage emerging technologies in quantum computing and material sciences.

The first Defence Growth Deals will be in: 

• South Yorkshire - A key region for the research, development and engineering of high-grade components and materials critical to the next generation of maritime, land and air capabilities. This includes specialist steel for gun barrels and nuclear submarines. 

• Plymouth – Home to the largest naval base in Western Europe, which will see £4 billion of investment over a 10-year period, the city has recently been designated as the national centre for marine autonomy to drive further innovation in the crucial maritime autonomous systems sector. 

• Wales – The country is becoming a leader in UAV development and testing, from companies such as Tekever in Pembrokeshire, to testing sites including the Snowdonia Aerospace Centre, and academic institutions including the Welsh Centre for Defence Autonomy.  

• Scotland – Home to a dynamic mix of growth industries, from a rapidly advancing space sector, to next generation maritime innovation centred around the Clyde and Rosyth, and critical technology superclusters anchored by world-class academic institutions.     

• Northern Ireland – Home to a diverse range of defence and dual use SMEs, the country is recognised as a leading cyber security hub, boosted by Queen’s University Belfast’s Centre for Secure Information Technologies and Momentum One Zero. It is also home to Thales and Harland & Wolff, companies that are critical to our support to Ukraine and our maritime strength. 

The DIS is a long-term investment in both security and high-growth economy - by strengthening the industrial base and preparing for future challenges, it will unlock defence’s potential as an engine for growth under the Government’s Plan for Change.