£1.5bn defence spending will create highly-skilled jobs in the UK

The UK government is to create more than 1,000 new jobs as a result of a £1.5bn defence investment.

The UK will build at least six new munitions and energetics factories and thousands more long-range weapons to strengthen Britain’s Armed Forces and create the new jobs across the country.

In an announcement yesterday [1 June 2025], the government revealed that through the Strategic Defence Review (SDR) – published in the coming days – the UK’s defence and deterrence is being bolstered with thousands of long-range weapons and a new £1.5bn government investment in munitions and energetics factories.

Together the investment will back around 1,800 highly-skilled jobs across the UK.

The SDR recommends creating an ‘always on’ munitions production capacity in the UK, allowing production to be scaled up at speed if needed. It says the Ministry of Defence (MoD) should also lay the industrial foundations for an uplift in munitions stockpiles to meet the demand of high-tempo warfare.

“Taking the lessons from Ukraine, which shows that our military is only as strong as the industry that stands behind it, the measures will boost British jobs while improving the warfighting readiness of both British Armed Forces and industry,” the government said.

The additional funding will see UK munitions spend hit £6bn this Parliament. It follows Prime Minister Keir Starmer’s commitment to increase defence spending to 2.5% of GDP, in a nod to military readiness in an era of heightened global uncertainty.

Commitments include:

  • £1.5bn in an ‘always on’ pipeline for munitions and building at least six new energetics and munitions factories in the UK. Creating more than 1,000 skilled manufacturing jobs, the factories will produce munitions and energetics, which are key components of weapons, including propellants, explosives and pyrotechnics.
  • Up to 7,000 UK-built long-range weapons for the UK Armed Forces, supporting around 800 defence jobs. 

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