UK defence contractors pledge 40,000 annual jobs and apprenticeships
By Heather Stewart Economics editor3 min read
LONDON: Britain’s major defence contractors have pledged to provide 40,000 apprenticeships, work experience placements and jobs for young people each year by 2030, as the Labour government seeks to link rising defence expenditure with employment and industrial growth.
Defence Secretary Wes Streeting said the government wanted increased spending on national security to strengthen British industry and create employment opportunities across the country. Speaking ahead of a roundtable with senior defence industry leaders, Streeting described the Ministry of Defence as a potential “ministry of growth” and “ministry of opportunity.”
“I think we have a responsibility, as we’re investing more in the defence of the realm, to do so in a way that boosts British jobs, British industry,” Streeting said.
Under the industry pledge, companies will offer opportunities to around 40,000 people aged 18 to 24 each year by 2030 through permanent employment, apprenticeships or work experience. The figure is expected to increase to 50,000 annually by 2035.
The initiative also includes a “no wrong door” approach, under which unsuccessful applicants will be directed towards other opportunities across the defence supply chain rather than being left without further guidance.
Major companies including BAE Systems, MBDA, Rolls-Royce, Babcock, Thales and Airbus have signed up to the commitments.
Streeting said increased defence spending could also contribute to the government’s wider ambition of re-industrialising Britain and spreading economic opportunities beyond London and southeast England. He noted that a significant proportion of defence spending already takes place outside the capital and the southeast.
The Labour government plans to increase defence spending to 2.7% of GDP from next year. The increase is partly being funded through reductions in the UK’s overseas aid budget.
Former Defence Secretary John Healey, who resigned from the post in June, had advocated increasing defence expenditure to 3% of GDP by 2030. Chancellor John Healey has not yet committed to that target, with a decision expected as part of a spending review next year.
Streeting said the government remained committed to strengthening national security while also supporting economic prosperity. He urged the public to wait for the upcoming budget and spending review for further details on future defence spending.
The expansion of defence spending comes amid wider concerns over public finances, with analysts suggesting that achieving the 3% target could require tax increases given spending pressures across other government departments.
The jobs initiative also comes ahead of a final report by former Labour cabinet minister Alan Milburn on young people who are not in education, employment or training, commonly known as NEETs. Milburn has highlighted the importance of work experience in helping young people develop skills and gain exposure to potential careers.
The Labour government is separately rolling out a Jobs Guarantee scheme for 18 to 24-year-olds who have been unemployed for at least 18 months, including taxpayer-funded work placements.
Defence Secretary Wes Streeting said the government wanted increased spending on national security to strengthen British industry and create employment opportunities across the country. Speaking ahead of a roundtable with senior defence industry leaders, Streeting described the Ministry of Defence as a potential “ministry of growth” and “ministry of opportunity.”
“I think we have a responsibility, as we’re investing more in the defence of the realm, to do so in a way that boosts British jobs, British industry,” Streeting said.
Under the industry pledge, companies will offer opportunities to around 40,000 people aged 18 to 24 each year by 2030 through permanent employment, apprenticeships or work experience. The figure is expected to increase to 50,000 annually by 2035.
The initiative also includes a “no wrong door” approach, under which unsuccessful applicants will be directed towards other opportunities across the defence supply chain rather than being left without further guidance.
Major companies including BAE Systems, MBDA, Rolls-Royce, Babcock, Thales and Airbus have signed up to the commitments.
Streeting said increased defence spending could also contribute to the government’s wider ambition of re-industrialising Britain and spreading economic opportunities beyond London and southeast England. He noted that a significant proportion of defence spending already takes place outside the capital and the southeast.
The Labour government plans to increase defence spending to 2.7% of GDP from next year. The increase is partly being funded through reductions in the UK’s overseas aid budget.
Former Defence Secretary John Healey, who resigned from the post in June, had advocated increasing defence expenditure to 3% of GDP by 2030. Chancellor John Healey has not yet committed to that target, with a decision expected as part of a spending review next year.
Streeting said the government remained committed to strengthening national security while also supporting economic prosperity. He urged the public to wait for the upcoming budget and spending review for further details on future defence spending.
The expansion of defence spending comes amid wider concerns over public finances, with analysts suggesting that achieving the 3% target could require tax increases given spending pressures across other government departments.
The jobs initiative also comes ahead of a final report by former Labour cabinet minister Alan Milburn on young people who are not in education, employment or training, commonly known as NEETs. Milburn has highlighted the importance of work experience in helping young people develop skills and gain exposure to potential careers.
The Labour government is separately rolling out a Jobs Guarantee scheme for 18 to 24-year-olds who have been unemployed for at least 18 months, including taxpayer-funded work placements.
