Issued by: Ministry of Defence

Government defence spending with UK industry rose 3.2% to a record £34.1 billion in 2025/26, boosting jobs, SMEs and communities across the UK.

• Government investment in the UK defence sector rose by 3.2% to £34.1 billion in 2025/26, marking the highest level of UK industry investment since records began.

• Northern Ireland saw the largest percentage increase in defence spend, up by 63%, followed by the East of England (24.7%) and the East Midlands (21%), as investment reaches communities in every part of the UK.

• Direct spending with smaller firms has also been boosted, now reaching £1.3 billion annually.

Communities across the country are feeling the benefit of the government’s increased investment in defence, new figures reveal [https://tinyurl.com/5d3a2te8].

In a significant boost to the UK economy, the Ministry of Defence spending with UK industry and commerce has seen a 3.2% increase in real terms spending, taking the total to £34.1 billion.

As the government accelerates efforts to reindustrialise Britain and strengthen deterrence, there has been a significant boost in investment in the electronic sector by 33%, ensuring UK industry can deliver at scale the modern capability and resilience the armed forces depend on.

The figures demonstrate how the government is placing the defence industrial base at the centre of national renewal, with rising investment helping to generate opportunities in towns and cities across the UK, increasing household incomes and giving people more breathing room.

Defence Secretary, Wes Streeting MP, said:

"We cannot strengthen our deterrence without having a strong, sovereign defence industry here at home.

"That’s why we are backing Britain, using the biggest sustained increase in defence spending since the Cold War to boost jobs and skills at home and to build the capability and technology we need to keep us safe in a more dangerous world."

The figures mark a substantial increase on the previous year, representing the highest level of UK industry investment since the statistics began in 2013/14.

Communities across the UK will feel the impact, with Northern Ireland recording the largest percentage increase in spend, up by 63% (£190 million), followed by the East of England (24.7%, almost £400 million) and the East Midlands (21%, almost £350 million).

Small and medium enterprises (SMEs) also gain from the growing investment. Defence spending with SMEs has grown by £100 million in the last year, reaching £1.3 billion, reflecting the Defence Industrial Strategy’s ambition to broaden and strengthen the supply chain and help SMEs to play a fuller role in delivering Britain’s deterrence and boosting growth for local communities.

The investment is seeing a direct translation to jobs, with recent estimates showing that defence spending with UK industry supported 274,000 roles in 2024/25, an increase of 26,000 on the previous year.

The news builds on the work of the Defence Investment Plan, which commits £298 billion to UK defence over the next four years. The plan will drive sustained investment across British industry, ensuring the UK’s defence sector remains a cornerstone of the country’s economic renewal.

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