UK Chancellor Emphasizes Support for Domestic Industries Amid Increased Defence Spending
Rachel Reeves confirms a balanced approach to defence procurement, aiming to boost UK jobs while remaining open to foreign firms.
Chancellor of the Exchequer Rachel Reeves has articulated her intention to leverage the UK’s increased defence spending to bolster local businesses while maintaining an openness to foreign manufacturers.
This statement follows a pledge by Prime Minister Sir Keir Starmer to raise defence spending to 2.5% of GDP by April 2027, a move that is expected to generate significant employment opportunities and economic growth within the United Kingdom.
At a manufacturing industry conference held in London, Reeves addressed queries regarding the government’s procurement strategy, particularly in relation to domestic and foreign firms.
While expressing a commitment to fostering British industry and job creation, she clarified that the UK would continue to source materials and equipment from international suppliers when necessary.
Reeves emphasized the importance of collaboration with UK defence companies to enhance their capacity and capabilities, acknowledging the need for immediate action in response to evolving global security challenges.
To facilitate the participation of smaller businesses in military spending, Reeves announced the establishment of a defence innovation hub aimed at supporting these enterprises in accessing new opportunities resulting from the increased budget.
This initiative is part of a broader strategy to ensure that the significant boost in defence budget not only fulfills military needs but also contributes positively to the domestic economy.
Reeves affirmed, 'We’ll always have a need to buy things from abroad.
I don’t want to pull up the drawbridge, but as we spend more on defence, of course, I want to see that benefit the UK economy and UK jobs.' The Chancellor’s comments reflect a balancing act between fostering national industry and engaging in international procurement avenues.
This statement follows a pledge by Prime Minister Sir Keir Starmer to raise defence spending to 2.5% of GDP by April 2027, a move that is expected to generate significant employment opportunities and economic growth within the United Kingdom.
At a manufacturing industry conference held in London, Reeves addressed queries regarding the government’s procurement strategy, particularly in relation to domestic and foreign firms.
While expressing a commitment to fostering British industry and job creation, she clarified that the UK would continue to source materials and equipment from international suppliers when necessary.
Reeves emphasized the importance of collaboration with UK defence companies to enhance their capacity and capabilities, acknowledging the need for immediate action in response to evolving global security challenges.
To facilitate the participation of smaller businesses in military spending, Reeves announced the establishment of a defence innovation hub aimed at supporting these enterprises in accessing new opportunities resulting from the increased budget.
This initiative is part of a broader strategy to ensure that the significant boost in defence budget not only fulfills military needs but also contributes positively to the domestic economy.
Reeves affirmed, 'We’ll always have a need to buy things from abroad.
I don’t want to pull up the drawbridge, but as we spend more on defence, of course, I want to see that benefit the UK economy and UK jobs.' The Chancellor’s comments reflect a balancing act between fostering national industry and engaging in international procurement avenues.
