Defence dividend delivers thousands of UK jobs following exceptional foreign investment
Source: gov.uk (2025-09-04)

The UK defence sector has driven unprecedented growth across the country following at least £1.4 billion foreign investment being announced since July 2024.

Unprecedented UK defence sector growth with more than £1.4 billion in foreign direct investment committed in just 12 months.

More than 1,700 new jobs being created across the UK, delivering on this Government’s Plan for Change.

Ministers saw British innovation and investment in action with visits to Greenford and Farringdon.

More than 1,700 new jobs are being created as the UK’s defence sector drives unprecedented growth across the country, following at least £1.4 billion foreign direct investment being announced since July 2024.

This success reflects the Government’s commitment to making defence an engine for economic growth across the UK. The increase in annual foreign direct investment from international companies demonstrates the confidence that companies feel to invest in the UK, alongside the Government’s historic uplift in defence spending, providing a significant boost to the UK economy and showing more countries are choosing to invest in facilities in Britain.

The increased investment is supporting the UK’s defence industrial base, with thousands of new jobs created and supported across the country, including manufacturing, engineering, and business service roles. Recent investments include an expanded drone manufacturing facility in Hampshire, shipbuilding secured in Belfast, and the investment in artillery systems manufacture in Telford.

The soon to be published Defence Industrial Strategy will set out how the UK will further strengthen its defence industrial base and supply chains, enhance sovereign capabilities, and position Britain as a global leader in defence technology whilst creating high-skilled jobs and driving economic growth across the country.

Defence Secretary John Healey MP, said:

This record new investment is a confirmed vote of confidence in Britain.

In a new era for defence, I am backing British industry, British innovators and British jobs.

A strong defence industrial base helps keep Britain safe and makes defence an engine for growth.

Ministers showcased this momentum yesterday with visits highlighting new British defence innovation sites.

The Minister for Defence Procurement and Industry, Rt Hon Maria Eagle MP, opened Ultra Maritime’s new £20 million manufacturing facility in Greenford, London, which will employ 100 staff including 35 new manufacturing and testing roles focused on producing cutting-edge sonobuoys for anti-submarine warfare systems.

Minister for Defence Procurement and Industry, Rt Hon Maria Eagle MP, said:

Ultra Maritime’s innovative work supports the Royal Navy to help keep the UK safe, whilst backing dozens of skilled manufacturing jobs.

By deepening their investment in state-of-the-art facilities, it is another demonstration of the confidence defence firms have in growing their companies in the UK.

The Defence Industrial Strategy will ensure we continue to attract world-class companies to the UK, creating high-skilled jobs and cementing Britain’s position as a global defence technology leader.

The Minister for Veterans and People, Alistair Carns DSO OBE MC MP, opened Arondite’s new Farringdon office, celebrating a British defence-tech company building AI software to connect autonomous systems. Veteran-founded Arondite announced a £100 million investment in advanced R&D, expanding its UK footprint and creating 100 new high-skilled jobs.

Minister for Veterans and People, Alistair Carns DSO OBE MC MP, said:

Arondite’s expansion represents exactly the kind of British innovation and entrepreneurship that exemplifies Defence as an engine for growth - combining cutting-edge AI technology with job creation and sovereign capability development.

As outlined in the SDR, we are creating a new partnership with business and making it easier for SMEs to do business with Defence. Through our Defence Industrial Strategy, we’re backing brilliant British companies like veteran-founded Arondite to scale up, create careers, and keep our nation secure in an increasingly complex world.

These developments build on the Government’s delivery of the Strategic Defence Review, which provided the strategic framework for strengthening Britain’s defence capabilities to meet the new era of threat, whilst harnessing the Prime Minister’s historic defence investment to create jobs and opportunity in communities nationwide.