2 weeks Ago
At its height, defence manufacturing provided livelihoods for tens of thousands of people in our region, across engineering, shipbuilding, ammunition production, and a multitude of supporting roles that underpinned this critical national endeavour. The echoes of hammers on steel and the hum of powerful machinery are ingrained in our regional identity. Today, the flame of this heritage flickers brightly.
The North East remains a significant hub for defence industrial activity. The presence of prime contractors such as BAE Systems, Rolls Royce, and Leonardo, alongside the innovative capabilities of Pearson Engineering and a vibrant ecosystem of small and medium-sized enterprises (SMEs), underscores the continued relevance of our region to the national defence landscape. However, despite our proud history and existing capabilities, the North East currently has the fewest defence jobs supported by direct MoD spending in Great Britain, at just 1,600.
Our region also receives the lowest amount of MoD spend by a significant margin – just £380m compared to the £632m allocated to Yorkshire and the Humber, the next lowest region. Other individual regions have spending reaching £7bn! This imbalance represents a missed opportunity, hindering our region’s economic potential and failing to fully leverage its strengths. Recent positive announcements by the Government – including a £173m defence training contract that will boost Teesside International Airport and new support for SMEs in the supply chain – are a solid start towards rebalancing and boosting regional growth.
But the recent and significant increase in defence spending – an additional £2.2bn this year, with a firm commitment to reach 2.5 per cent of GDP by 2027 and three per cent of GDP in the future – presents new opportunities for industry in the North East and more well paid skilled jobs.
The MoD’s newly established £400m budget for UK Defence Innovation, with its planned growth over time, and the commitment to allocate a minimum of 10 per cent of the equipment budget to novel technologies, creates a fertile ground for innovation and growth within the North East. Our region is already home to a burgeoning ecosystem of SMEs and tech start-ups, exemplified by the innovative companies clustered at NETPark in Sedgefield. Strategically channelling MoD funding into these cutting-edge areas can propel them to the next level, unlocking additional private investment, fostering local economic growth and generating new job opportunities.
I know there is huge pride and enthusiasm for the high-quality, skilled jobs associated with advanced industry and manufacturing in the North East. Our existing civilian industrial base is world-renowned, including companies such as Nissan, Hitachi and Komatsu. As the Government rightly goes further and faster to strengthen our national security in an increasingly volatile global landscape, I want to make sure our region is positioned to fully capitalise on the economic opportunities that this important work brings.
By strategically investing in our region’s defence industrial base, the Government can not only bolster national security but also unlock significant economic growth. From next-generation armaments and armoured vehicles to pioneering advancements in aerospace and space technologies, the North East possesses the skills and ambition to once again stand at the forefront of building a modern, resilient, and technologically advanced Armed Forces for our country..
