Britain Aims to Become a Defence Industrial Powerhouse

Finance Minister Rachel Reeves announced plans for Britain to become a 'defence industrial superpower', investing an additional £2.2 billion in defence. Focused on new technologies, the investment aims to boost national and economic security amid rising geopolitical tensions, while reforming the procurement system.

Britain's finance minister, Rachel Reeves, set ambitious plans to transform the nation into a 'defence industrial superpower', unveiling an increase of £2.2 billion for the sector in her budget update. This move is in response to growing geopolitical tensions and pressure from the U.S. to bolster European security measures.

Reeves outlined a strategy to dedicate 10% of the defence equipment budget towards innovative technologies such as drones and AI, while facilitating better access for small companies to secure defence contracts. These reforms aim to overhaul what she described as a 'broken' procurement system.

Highlighting the necessity of this investment in a 'more insecure world', Reeves emphasized that it would also strengthen the economy. Prime Minister Keir Starmer backed the plan, proposing to elevate defence spending to 2.5% of GDP by 2027, with aspirations to reach 3% in the subsequent parliamentary term.

(With inputs from agencies.)