Wales' role in defending the UK

Wales is home to a substantial and well matured defence manufacturing industry, spanning sectors including aerospace, defence-related electronics, drones, weapons, ammunition and land systems manufacturing (e.g. armoured fighting vehicles). The Welsh Government has estimated that Wales’ combined defence and aerospace sector directly employs 16,000 people, has a turnover of £3.7 billion and contributes approximately £1.5 … Show more

Wales is home to a substantial and well matured defence manufacturing industry, spanning sectors including aerospace, defence-related electronics, drones, weapons, ammunition and land systems manufacturing (e.g. armoured fighting vehicles). The Welsh Government has estimated that Wales’ combined defence and aerospace sector directly employs 16,000 people, has a turnover of £3.7 billion and contributes approximately £1.5 billion in gross valued added (GVA) to the Welsh economy. The UK Government has committed to increasing defence spending to 3% of GDP in the next Parliament, with current projections showing an estimated spend of 2.68% of GDP by 2030. In line with its NATO allies, the UK has committed to reach 3.5% of GDP on defence spending by 2035. The UK Government has said that defence investment will create a 'ripple effect throughout the Welsh economy, supporting not only direct employment but also numerous supply chain businesses and local communities'. Our inquiry seeks to investigate how Wales can best benefit from rising government spending on defence, as well as to assess what contribution the defence manufacturing industry in Wales makes to the UK’s overall defence capabilities. We’re looking to answer four key strategic questions: What contribution does the Welsh defence manufacturing industry make to the UK's overall defence capabilities? How important is the defence manufacturing industry in driving the economy in Wales? What are the challenges and opportunities facing the defence manufacturing industry in Wales today, what will they be in the future, and how can Wales benefit from them? What support is needed from government to enable the defence manufacturing industry in Wales to thrive? Show less