Wales benefits from £1.1 billion defence investment backing thousands of skilled jobs - Scotland already gaining conracts

27th October 2025

Welsh communities are benefiting from significant defence investment that is backing high-quality careers across the nation.

£1.1 billion annual defence expenditure with industry in Wales supporting 3,900 directly supported industry jobs.

£340 defence spending per person across Wales as part of Government's historic increase to 2.6% of GDP by 2027.

Investment spans advanced manufacturing and cyber security sectors from Anglesey to Cardiff.

Welsh communities are benefiting from significant defence investment that is backing high-quality careers across the nation, according to a new UK Defence Footprint booklet which highlights the positive impact of defence spending on the nations and regions of the UK.

The latest government figures highlight that Wales received £1.1 billion in defence spending in the last year alone, directly supporting 3,900 Welsh jobs across a range of sectors. This represents £340 in defence spending per person across Wales, demonstrating the significant economic impact of the Government's defence commitments on Welsh communities.

This substantial investment underpins the Government's historic increase in defence spending to 2.6% of GDP by 2027, with an ambition to reach 3% in the next Parliament. The commitment reflects the Government's recognition that defence spending not only keeps the nation secure but also serves as a powerful engine for economic growth across all regions of the UK, delivering on the Plan for Change.

Secretary of State for Wales Jo Stevens said, "The defence industry is a vital part of the Welsh economy and provides thousands of high-quality jobs across every part of the country.

Each of the Ministry of Defence's top five suppliers has a footprint here so Wales is well placed to benefit from the UK Government's increase in defence spending.

Our number one mission is kickstarting economic growth and by investing in the defence sector we are safeguarding our national security, creating new jobs and putting more money in people’s pockets.

Minister for Defence Readiness and Industry, Luke Pollard MP said, "Our record uplift in defence investment will ensure our forces have the kit they need to fight, ensuring we are secure at home and strong abroad.

By making defence an engine for growth across the country and supporting the Government’s Plan for Change, the defence dividend is benefitting Welsh jobs, communities and businesses.

Wales’ expertise in advanced manufacturing and cyber security makes it an essential part of Britain’s defence ecosystem, delivering prosperity for communities across the country.

Wales’ defence sector spans armoured vehicle production and high-end drone manufacturing, with defence companies establishing major operations from Anglesey to Cardiff. These investments are creating opportunities across cutting-edge technology development and supporting its growing reputation as a hub for defence innovation.

The defence investment creates a ripple effect throughout the Welsh economy, supporting not only direct employment but also numerous supply chain businesses and local communities.

From advanced manufacturing and cyber security to research and development, the sector provides opportunities for highly skilled workers whilst demonstrating the industry’s vital role in supporting local families across Wales.

There has been a "big" increase in recent years in terms of value of payments and contracts for the UK MoD. The value of new contracts especially has increased significantly in the last 12-18 months (2023/24 → 2024/25) after a dip in 2022/23.

The total payments by the MoD core department have steadily increased from ~£27 bn in 2020/21 up to £40.6 bn in 2024/25 a rise of about ~50% over ~4 years.

The value of new contracts placed is more volatile: after a jump to ~£18.5 bn in 2021/22, it fell in 2022/23 (~£13.2 bn) then rose again in 2023/24 (~£16.2 bn) and to ~£20.9 bn (provisional) in 2024/25.

The latest year (2024/25) shows a strong increase in new contracts value (+£4.7 bn vs the prior year) according to the MoD data.

The largest new contracts tend to skew the figures (e.g., many smaller contracts versus a few very large ones). For example, the Single Source Regulations Office (SSRO) data shows for contracts becoming "Qualifying Defence Contracts" (QDCs/QSCs) in 2024/25 the total estimated contract price was £13.5 bn, compared with only £5.6 bn in 2023/24 and £4.3 bn in 2022/23.

The increase in value appears driven by big contracts and more non-competitive/single-source awards.

The government’s recently published UK National Security Strategy warns the UK must "actively prepare" for the possibility that the homeland may face a "wartime scenario" something it hasn’t had to consider in this way for many years.

A major Strategic Defence Review (2025) (SDR) has concluded that future defence planning must assume higher threats from states such as Russia, Iran and others, including risks of disruption via cyber, supply chains, critical infrastructure.

The UK plans significant investments to build up defence-industry capacity and stockpiles, e.g., building new munitions factories, increasing long-range weapons, enhancing resilience of infrastructure.

QinetiQ won a £1.5 billion five-year contract extension from Ministry of Defence (UK) for Test, Trials, Training & Evaluation (T3E) services, which explicitly supports "more than 200 jobs in Scotland".

McLaughlin & Harvey (Glasgow-based) secured an £86 million MoD contract (Nov 2023) to build a large storage facility (75,000 m²) for MoD in Longtown, Cumbria — supporting approx. “150 high-quality skilled jobs in Scotland”.

Scottish contracts
Briggs Marine (Burntisland, Fife)

In June 2025, Briggs Marine, a family-owned company based in Burntisland, Fife, secured a major Ministry of Defence contract worth around £182 million over eight years. The contract covers the supply, inspection, and maintenance of the MoD’s marine infrastructure — such as moorings, navigation markers and targets — both in UK waters and at overseas defence ranges. This is one of the largest UK government marine-services contracts ever awarded to a Scottish-headquartered company. The deal will sustain hundreds of jobs in Fife and Aberdeenshire, as well as across Briggs’ wider maritime support network.

QinetiQ - Test and Evaluation Services (Scottish jobs supported)

In May 2025, QinetiQ won a £1.5 billion, five-year extension from the MoD for its “Long-Term Partnering Agreement” (LTPA), which covers Test, Trials, Training, and Evaluation (T3E) services for the UK’s armed forces. While QinetiQ is headquartered in southern England, this contract underpins around 1,200 UK jobs, with a significant number of these in Scotland, including at ranges and test facilities that support Royal Navy and RAF operations. The deal ensures continuity of advanced testing and data-analysis capabilities vital for new defence platforms and weapons systems.

Babcock International – Type 31 Frigate Programme (Rosyth)

At Rosyth Dockyard in Fife, Babcock International continues to lead the Type 31 frigate programme, a flagship UK shipbuilding initiative. In April 2025, the company received a £65 million contract covering the “Capability Insertion Period” (CIP) — effectively an upgrade and configuration phase for the five new frigates being assembled at Rosyth. The work supports thousands of skilled shipbuilding and engineering jobs in Fife and Central Scotland, maintaining momentum on a programme regarded as central to the UK’s shipbuilding renaissance.

BAE Systems – Clyde Shipyards (Glasgow)

BAE Systems, which operates the major Govan and Scotstoun shipyards on the River Clyde, continues to benefit from large UK and export defence orders. The ongoing Type 26 frigate programme for the Royal Navy remains the largest single defence manufacturing project in Scotland. In August 2025, BAE secured a further contract related to export variants for Norway, reportedly worth around £10 billion across the programme’s life. Much of the design, build, and systems integration will take place in Glasgow, safeguarding thousands of Scottish industrial jobs and supply-chain roles for years ahead.

McLaughlin & Harvey (Glasgow)

In late 2023, Glasgow-based construction and civil-engineering firm McLaughlin & Harvey won an £86 million MoD contract to build a large-scale munitions and logistics storage facility at Longtown, Cumbria. While the project site is in northern England, the contract supports around 150 jobs in Scotland and the wider UK supply chain, with design and project management led from the firm’s Scottish offices.

Rolls-Royce Defence (Glasgow operations)

In late 2024, Rolls-Royce Defence expanded its Scottish footprint, opening a new Glasgow office to manage work on propulsion and energy systems for both the UK MoD and allied navies. Though not tied to one specific MoD award, the expansion reflects the company’s involvement in several ongoing naval and aerospace contracts and its intention to create more than 100 new skilled roles in Scotland.

Taken together, these contracts illustrate a notable strengthening of Scotland’s defence industrial base over the past 18 months. While the very largest awards (like QinetiQ’s £1.5 billion extension or BAE’s Type 26 contracts) come through UK-wide primes, they sustain thousands of Scottish jobs in shipbuilding, maritime support, engineering, and testing. Meanwhile, Scottish-headquartered firms such as Briggs Marine and McLaughlin & Harvey continue to win substantial direct MoD work, ensuring that Scotland remains a central part of the UK’s defence supply chain.