For over a century, Britain has been a global leader in defence innovation—from radar in the Second World War to more recent developments in quantum navigation and cyber warfare. The research and development of defence equipment and military technologies is something that this nation has, historically, excelled in.
However, the 21st century presents new challenges. The UK’s historic reliance on international partners for key technologies is rapidly becoming increasingly untenable in a world of shifting alliances, supply chain fragility, and technological protectionism. As the Member of Parliament for Gillingham and Rainham, a constituency with a proud and rich military history, we have many constituents currently serving in our armed forces or contributing to the local defence economy. I know, both from my conversations with residents, and the normalised volatility of present-day geopolitics, that the need to reinforce, modernize, and strategically realign our sovereign national defence capabilities has never been more pressing.
This government has responded decisively and seriously to the urgent call from both our defence sector and the general public to significantly strengthen the nation’s sovereign technology capabilities. Our ability to independently develop, produce, and maintain critical defence systems and equipment fundamentally shapes Britain’s economic growth, national employment rates, regional supply chains and most significantly, our capacity to defend ourselves. Through this framing, the stakes couldn’t be much higher.
The Prime Minister recently addressed a BAE Systems shipyard in Glasgow, and emphasised the importance of making Britain “battle-ready”, through record investment in our defensive sector. As global circumstances change, so too does our requirement to better protect ourselves – and being self-sufficient producers of advanced defence technologies remains at the core of our economic and actual security. In an increasingly uncertain world, a strong defence sector is not optional—it’s essential for national resilience and global credibility.
The recently published Strategic Defence Review outlines the growing realities of an increasingly dangerous world, and the need to realign and expand the UK defence sector. Evolving conflict across Europe, growing Russian aggression, new nuclear risks, and regularised cyber-attacks makes the decision to raise defence spending to 2.5% of GDP by 2027, (3% in the next Parliament when fiscal conditions allow), a vital intervention by a government serious about the realities of the modern world. Although the reality is it does not go far enough, fast enough. Preventative investment, through this lens, is both a means of economic advancement and national security. Peace, and prosperity, through strength.
The strategic review critically outlines five essential elements driving this shift in approach. Two of which appear particularly relevant when focusing on British sovereign capability. By harnessing our defensive industries as an ‘Engine for growth’, the government will secure jobs and boost prosperity through new productive partnerships with industry, achieved through radical procurement reforms and backing UK businesses and our manufacturing base. Secondly, through prioritising UK innovation and research as a pioneering tool across the sector, we utilise and build on our technological expertise whilst creating new avenues for future development, especially when it comes to our AI growth potential and its integration with other areas of public life, including education or health.
In 2023/24, the UK defence industry directly and indirectly supported 463,000 jobs. This includes 151,000 direct jobs and 121,000 indirect jobs. The Joint Economic Data Hub (JEDHub), a collaboration between academia, government and industry on defence economic data, estimated the industry contributed £9.5 billion to the economy in 2022. Many of these roles, and much of this output, is inherently linked to our national manufacturing capability, ensuring that the UK can produce vital equipment without relying on foreign suppliers, which is especially significant in times of crisis or conflict.
Beyond the national picture, for regional growth this is significant. The defence sector bucks the trend in providing major employment hubs which are external from London, with employment in each of the South West, South East, North West and Scotland all reaching over the tens of thousands. Thus, investment in our manufacturing capability through the defence industries sustains high-skilled technical manufacturing jobs, drives innovation across advanced engineering and technology sectors, and contributes significantly to regional economies. With growth at the heart of this government’s agenda for rebuilding Britain, the defence sector is a key part of this process.
Looking ahead, to significantly enhance our defence manufacturing capability, the UK should establish a network of advanced manufacturing hubs strategically located across key regions. These hubs would be equipped with cutting-edge technologies such as additive manufacturing (3D printing), robotics, and AI-driven production systems, enabling rapid prototyping, precision engineering, and scalable production of critical defence components. This investment would not only modernise our industrial base but also dramatically increase supply chain resilience. By strengthening domestic capabilities and reducing reliance on foreign suppliers, we can ensure greater national
sovereignty, protect against global supply disruptions, and respond more swiftly and effectively to emerging threats or crises. Again, these hubs would serve as engines of regional economic growth, fostering innovation, creating high-skilled jobs, and positioning the UK as a global leader in advanced defence manufacturing.
Harnessing the productive potential of AI is one of the great questions of our age and using it as an efficient tool to benefit the UK is critical. Investing in AI within the defence sector is crucial for the UK to maintain a strategic edge, enhance national security, and modernise our armed forces. The technological uplift could be truly game changing. AI enables faster decision-making, improved threat detection, autonomous systems, and more efficient logistics and maintenance, also strengthening cyber defence and supports intelligence analysis. Britain should be at the forefront of utilising this transformative tool to strengthen both our national security, economic growth and sovereign capability.
With the government seeking to capture the opportunities of AI to enhance growth and productivity, this applies pivotally to the defence sector. By significantly increasing funding for AI research focused on defence applications—such as autonomous vehicles, threat detection, and cyber defence—the government can foster innovation that enhances operational efficiency and strategic advantage. Partnerships with universities and private tech firms will also accelerate the development and deployment of cutting-edge AI solutions. A key example of this is the Oxford and Cambridge growth corridor, which is predicted to add up to £78bn to the UK economy by 2035.
To sustain technological leadership, the government should invest in education and training programs that build a talent pipeline skilled in AI, data science, and advanced manufacturing techniques. Encouraging collaboration between defence, academia, and industry will create a dynamic ecosystem that drives innovation and maintains British sovereignty in defence technology for the long term. This also fundamentally aligns with the Strategic Defence Review’s objective to shift the national effort to a whole of society approach.
Investing in sovereign defence technology—particularly through AI and advanced manufacturing—is not just a strategic necessity but a vital driver of economic growth, regional development, and national security. In an era defined by geopolitical instability and technological acceleration, the UK must take bold, forward-looking steps to secure its independence and resilience. By building domestic capability, fostering innovation, and aligning our industrial strategy with defence priorities, we can safeguard our future, strengthen our global position, and ensure that Britain remains a leader in both security and technological excellence for generations to come.
Article originally published on LabourTech