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UK sets up innovation hub to boost defence sector and growth
Published by Global Banking & Finance Review®
Posted on February 28, 2025
1 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 28, 2025
1 min readLast updated: January 25, 2026
The UK is launching an innovation hub to boost the defence sector, aiming to enhance military technologies and economic growth, with increased defence spending planned.
LONDON (Reuters) - Britain said on Friday it would launch an innovation hub that will work with defence firms to speed up the delivery of military technologies, in an effort to reform the sector and boost growth.
The move comes days after Prime Minister Keir Starmer announced an increase in defence spending to 2.5% of GDP by 2027, and a target of 3% for the next parliament due to start in 2029.
"In the world we face, national security and economic growth are going to go hand in hand," finance minister Rachel Reeves said. "High-skilled, well-paid jobs across the UK will both make our country safer and put pounds in people’s pockets."
Britain's Labour government, elected last July on a promise to drive economic growth, views the defence industry as a driver of skilled jobs.
The new unit will be officially launched alongside Reeves' economic update on March 26 and is expected to support thousands of jobs, the government said.
(Reporting by Suban Abdulla)
The innovation hub aims to work with defence firms to accelerate the delivery of military technologies and reform the defence sector.
Prime Minister Keir Starmer announced an increase in defence spending to 2.5% of GDP by 2027, with a target of 3% for the next parliament starting in 2029.
The Labour government sees the defence industry as a key driver of skilled jobs and economic growth in the UK.
The new unit will be officially launched alongside Finance Minister Rachel Reeves' economic update on March 26.
The government expects the innovation hub to support thousands of jobs across the UK.
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