Britain’s finance minister Rachel Reeves said she wanted the country to become a “defense industrial superpower” as she pumped an extra 2.2 billion pounds (€2.6 billion) into the sector in her budget update on Wednesday.
Reflecting heightened geopolitical tension and U.S. President Donald Trump’s calls for Europe to do more to protect its own security, Reeves said she would focus on new technology and innovation to drive the country’s defense industry.
Under new plans, 10% of the government’s defense equipment budget would be spent on new technologies, she said, with a focus on drones and AI, while small companies would be given better access to defense contracts in a reform of what she called a “broken” procurement system.
The government is also setting aside €478 million to be spent on UK defense innovation to bring new technology to the frontline more quickly, she said.
Reeves referenced defense throughout her speech, calling the extra cash for the sector vital in “a more insecure world”, and adding that the investment would help the wider economy.
Under new plans, 10% of the government’s defense equipment budget would be spent on new technologies, she said, with a focus on drones and AI, while small companies would be given better access to defense contracts in a reform of what she called a “broken” procurement system.
The government is also setting aside €478 million to be spent on UK defense innovation to bring new technology to the frontline more quickly, she said.
Reeves referenced defense throughout her speech, calling the extra cash for the sector vital in “a more insecure world”, and adding that the investment would help the wider economy.
Prime Minister Keir Starmer last month committed to lift military spending to 2.5% of GDP by 2027, the biggest increase in the budget since the end of the Cold War, and said Britain will aim to spend 3% of its GDP on defense in the next parliament.A strong economy needs a strong national defence.
— Rachel Reeves (@RachelReevesMP) March 26, 2025
That is why we are giving a £2.2 billion boost for our national defence.https://t.co/ozBYn36rVh
More In Politics MORE...
