Gearing up for growth: How the Government's new defence industrial strategy could be a shot in the arm for Telford firms

The Government’s new Defence Industrial Strategy was launched this week, supported by £773 million of investment, and intended to set out ministers' plan to boost the nation's economy through its defence industry.

Launching the policy with an announcement of initial funding for five "Defence Growth Deals", worth £250 million for projects in various regions of the UK, Defence Secretary Luke Pollard said the strategy would make the UK's defence companies an "engine for economic growth", as well as a hub for employment and innovation in industry.

Key elements of the plan include the deals to boost regional economies, increased spending to at least 2.6 per cent of GDP by 2027, a new 10-year Defence Investment Plan to provide "clarity" for industry, and a focus on upskilling the workforce for future defence needs.

The Government hopes the injection of public cash into the nation's defence industries will “spread prosperity” across the UK's domestic regions.

And while none of the initial cash was ring-fenced for projects in Shropshire, the Government was sending out a clear signal that places such as Telford will continue to benefit from its defence investment.

The announcement follows a string of recent contracts which have underlined the town’s growing importance to the country’s defence industry.

For companies such as Telford defence firms Babcock International and Rheinmetall BAE Systems Land (RBSL), the timing is significant.

RBSL employs more than 300 engineers, technicians and apprentices at its Hadley Castle works, and a recruitment drive, launched earlier this year as the firm ramped up production on two huge vehicle contracts, swelled those ranks of skilled employees even further.

Its Hadley Castle Works site in Telford is already building the British Army’s new Challenger 3 tanks as well as more than 260 Boxer armoured vehicles under multi-billion-pound contracts. 

The government strategy’s focus on sovereign capability is likely to work in the firm's favour, with further investment likely to result in expansion in training and recruitment in the county.

Also in Telford, ministers have confirmed that Rheinmetall will open a new facility to produce artillery gun barrels, restoring a vital skillset to the UK and creating a further 400 highly skilled jobs in the county.  

Donnington-based Babcock International, which provides engineering support across the marine, nuclear, land and aviation sectors and also maintains the UK's fleet of submarines, recently announced that 400 jobs had been secured in Telford after a £1.6 billion defence contract was extended for five years.

By prioritising UK-based companies in the supply chain, the Ministry of Defence is encouraging firms to source more parts and services domestically - a move which is also set to create new opportunities for smaller supply-chain businesses in Shropshire and beyond.

Meanwhile, the Government has promised to increase spending on technologies such as artificial intelligence, advanced materials and digital manufacturing, which open the door to new partnerships with universities, start-ups and specialist firms. 

Again, the timing could be serendipitous for the town. 

A raft of new educational facilities, some of which are specifically focused on delivering high-tech digital skills, are on track to be completed as part of Telford's £220m new Station Quarter regeneration project.

Challenges remain. Defence programmes are complex, and inflation, skills shortages and supply chain bottlenecks all pose risks. 

But if the promises are delivered, Telford looks set to play an even greater role in equipping the British Army and sustaining the UK’s defence sector. 

For firms like RBSL and the wider community, the new strategy could mark the beginning of a new era of growth.