Rachel Reeves allocates £2.2bn to turn UK into a defence superpower - but Tories say its not enough
Rachel Reeves yesterday pledged to turn Britain into a defence industrial superpower after allocating an extra £2.
Rachel Reeves yesterday pledged to turn Britain into a defence industrial superpower after allocating an extra £2.2billion for high-tech equipment.
She promised to spend a minimum of 10 per cent of the Ministry of Defences equipment budget on novel technologies such as artificial intelligence and drones.
And a protected budget of £400million will be allocated to new technology. The Chancellor told the Commons that the figure will rise over time, with a clear mandate to bring innovative technology to the front line at speed.
Of that money, £200million will support military shipyards at Barrow, supporting the creation of thousands of jobs, said the Chancellor, who also said the Portsmouth naval base will be regenerated.
Cities and towns such as Glasgow, Derby and Newport, already with significant manufacturing facilities, are expected to see more demand for skilled engineers and scientists as opportunities for UK tech firms and start-ups increase.
But while manufacturers welcomed the investment, Tory defence spokesman James Cartlidge suggested £2.2billion was not enough. He said: We support accelerating the path to higher defence spending and using cuts in the overseas aid budget to fund.
However, given the... threats Britain faces, we call on Labour to commit to spending 3 per cent of GDP on defence by the end of this Parliament, rather than the ambition to reach 3 per cent by the end of the next one.
Mr Cartlidge also called on Labour to reveal how much of the additional defence money will go on their terrible Chagos deal.Rachel Reeves
Rachel Reeves (right, pictured with Defence Secretary John Healey and Chief of Defence Staff Admiral Sir Tony Radakin) promised to spend a minimum of 10 per cent of the Ministry of Defences equipment budget on novel technologies such as artificial intelligence and drones
The Chancellor pledged to turn Britain into a defence industrial superpower after allocating an extra £2.2billion for high-tech equipment (file image of RAF drone pilot)
While manufacturers welcomed the investment, Tory defence spokesman James Cartlidge suggested £2.2billion was not enough (file image of soldier with the Carl Gustaf 84mm recoilless rifle)
Ms Reeves meets military personnel during her visit to Wellington Barracks, to meet with defence personnel spearheading defence and security innovation, after she delivered her spring statement
Defence Secretary John Healey pledged that four Royal Navy destroyers would be equipped with new laser technologies by 2027 thanks to the new funding.
Mr Healey, who joined the Chancellor at Wellington Barracks in London yesterday to see the UKs first AI strike drone, insisted there was no chance of the UK using defence money to effectively pay the US to protect the Red Sea and Suez Canal.
The question was raised after US officials suggested their allies do not have the technology to protect their shipping from attacks by Houthi rebels.
Mr Healey said: This is money for UK defence to invest. Thats an extra £5billion for the next financial year.
Thats a bold step towards the 2.5 per cent announcement the Prime Minister made for 2027, the biggest increase in defence spending since the end of the Cold War.
That is to strengthen our defence, our deterrents, our armed forces. To the extent it allows us to be a better and closer defence ally to the United States.
Defence manufacturer Babcock said the extra £2.2billion would allow investment in UK firms and drive domestic economic growth.
The Ministry of Defence also announced how former military sites, including Wyton airfield in Cambridgeshire, will be used to build 10,000 homes, with some being reserved for veterans.