Govt invests £50m in South Yorkshire defence deal
The funding comes amid criticism of the government’s lack of clarity on defence spending, and is intended to expand R&D capacity, strengthen supply chains, and build on the region’s specialist skills base.
The Defence Growth Deal was announced by defence minister Luke Pollard MP at the University of Sheffield’s Advanced Manufacturing Research Centre, in a meeting with industry and Mayor Oliver Coppard.
The government hopes the deal will catalyse growth in this sector, adding to the region’s existing strengths: Major facilities such as the MOD-owned Sheffield Forgemasters and BAE Systems’ advanced artillery factory are already based in South Yorkshire, complementing defence SMEs and producing kit such as howitzer gun barrels and steel for Dreadnought-class submarines.
Added to which, 3,200 jobs in Yorkshire and the Humber are directly supported by almost £1bn of defence spending each year.
The £50m boost comes alongside reports of the Ministry of Defence facing a £28bn funding shortfall over the next four years.
This is despite the UK delivering the largest sustained increase in defence spending since the end of the Cold War, hitting 2.6% of GDP from 2027 – an amount that Labour believed would be enough when it came into power, but which has been thrown into debate following recent events in the Middle East.
Luke Pollard MP, minister for defence readiness and industry, said: “This £50m investment will mean South Yorkshire’s superb defence companies can develop innovative new technology, helping strengthen our Armed Forces and keep Britain safe in this new era of threat.
“With government, industry, and academia – such as the Advanced Manufacturing Research Centre – working hand in hand we are making sure this support is really targeted where it will have the biggest impact.
“Through this Defence Growth Deal our government is backing British, and backing South Yorkshire. We’re harnessing the proud industrial base in this area to make defence an engine for growth, delivering new jobs and skills for local people.
“Today’s discussion included establishing a South Yorkshire Defence Board, deepening collaboration between the government, South Yorkshire’s mayoral authority, industry, and academia, working hand-in-hand on making the Growth Deal as effective as possible while attracting long-term public and private investment.”
South Yorkshire’s Mayor Oliver Coppard said: “In an ever more dangerous world, South Yorkshire has a significant role to play in the defence and security of the United Kingdom and our allies.
“The £50m Defence Growth Deal we have been awarded by the government doesn’t simply recognise the expertise and assets we have here today, it will help us to build the technologies and innovations of the future.
“That Deal will mean we can continue making things, creating secure, well‑paid jobs, giving people across South Yorkshire the opportunity to stay near and go far. All while helping to keep the UK and our allies safe, secure, and protected.”
