• Defence industry body highlights an increase in defence spending to 3% of GDP could deliver 50,000 new jobs by 2035
  • The value of the sector to the UK economy could also reach £23.5 billion, an increase of £8.5 billion than the £15 billion value currently added
  • Data from the trade association outlines how £12 billion additional defence spending will improve the wider economy

Data from trade association ADS outlines that 50,000 additional jobs could be provided by 2035 from an increase in defence spending to 3% of GDP. Employment in the sector, which already stands at over 180,000, is known to be high quality, with 80% of jobs found outside of the Southeast, at above average salaries and high productivity.

ADS analysis further suggests that if spending reaches 3.5% of GDP, as current commitments indicate, this will generate a total of 85,000 direct jobs in the defence sector.

Notably, the new data – modelled on assurances to spend 3% of GDP on defence by 2035 – also highlights a more than 50% increase in the Gross Value Added (GVA) to the UK economy from the sector. GVA could reach £23.5 billion by 2035 under the new outlines, up 50% on the £15 billion added by the defence industry to the UK economy in 2024.

As the long-awaited Defence Industrial Strategy is set to launch, Kevin Craven, CEO of ADS, which represents over 1600 businesses in aerospace, defence, security and space, comments:

“The primary purpose of defence and security is to protect and deter – but in the process, the value we provide to the economy is increasingly critical to innovation and prosperity. With a deteriorating security environment, the government’s acknowledgement of the need to immediately bolster our defence is hugely welcome. An increase in spending of this magnitude delivers on the long-term demand signal that helps the defence sector to do what we do best: deliver capabilities that are needed to uphold our security, in a way that delivers value for money to the citizens we are here to protect.

“That said, while the cost of living rises and societal pressures increase, it’s right that we are raising awareness of the good that we, as a sector, provide for the UK tangibly for citizens. Our sector drives social mobility and prosperity through the high proportion of jobs we offer people from all walks of life, through the international opportunities and high-tech development partnerships we build, and through the wide range of improvements to civilian life and every day technology that originate in our sector.”

Defence Industrial Growth could see wider benefits:

ADS notes that growth will be seen from a general rise in the overall economy, per International Monetary Fund statistics; the rise in defence spending as a proportion of GDP, where the UK consistently exceeds our NATO targets; the private sector accounting for more defence spend; and an increase in defence exports.

According to ADS data, in 2024 the UK defence sector contributed:

  • £15 billion in value add to the UK economy, increasing 70% from 2014
  • £36.4 billion in turnover, up two thirds since 2014
  • £13.7 billion in exports, up a half (52%) in a decade.
  • 181,500 direct jobs are employed in the defence sector

Read more in our Defence Outlook