Nine defence firms in Shropshire and the West Midlands which could benefit from new military spending plans

Prime Minister Kier Starmer says the UK has an ambition to increase its defence spending from 2.5 per cent to 3 per cent over the next parliament as part of plans to move the UK to a state of “war-fighting readiness”.

As part of a new strategic defence review announced by the Government today, at least six new munitions factories are set to open alongside the procurement of up to 7,000 long-range weapons, also set to be built in the UK.

Up to 12 attack submarines will be built for the Royal Navy as part of the Australia-UK-US Aukus and £1 billion will be invested in a new cyber command and increasing the UK's digital capabilities.

The Prime Minister said all parts of society needed to be involved in dealing with an "increasingly dangerous world" - adding that the plan would create “a battle-ready, armour-clad nation with the strongest alliances, and the most advanced capabilities, equipped for the decades to come”.

Last year, the Government spent over £1.5 billion on defence contracts across the West Midlands, with defence-industry firms across Shropshire and the West Midlands employing over 22,000 people.

Here are some of those which could benefit as a result of the increase in spending in the sector.

RBSL and Rheinmetall (Telford)

Telford firm Rheinmetall BAE Systems Land, more widely known as RBSL, are likely to form a key part of UK defence manufacturing proposals outlined today. 

Last month Rheinmetall  announced it was building a new gun-barrel factory at Hadley Castle Works, which it says will create up to 400 jobs in Shropshire. RBSL is already building the UK's Challenger 3 tanks and Boxer armoured vehicle at its Telford factory, which employs around 500 people. 

RBSL signed a £800 million contract with the UK Ministry of Defence(MOD) in May 2021 to upgrade 148 Challenger 2 tanks as part of a programme known as Challenger 3.

On a visit to the factory this year, Minister for Defence Procurement and Industry, Maria Eagle MP, said Telford was "at the heart of UK defence" plans. 

"I was pleased to witness first-hand how our defence industry is equipping the Armed Forces with 21st century armoured fighting vehicles," she said.

"In the face of global threats, the upcoming Defence Industrial Strategy will drive economic growth, boost British jobs, and strengthen national security."

Leidos/MOD Donnington (Telford)