Record breaking defence spending with UK industry rises above £34 billion, fuelling reindustrialisation across the UK

Government investment in the UK defence sector rose by 3.2% to £34.1 billion in 2025/26, marking the highest level of UK industry investment since records began.

Northern Ireland saw the largest percentage increase in defence spend, up by 63%, followed by the East of England (24.7%) and the East Midlands (21%), as investment reaches communities in every part of the UK.

Direct spending with smaller firms has also been boosted, now reaching £1.3 billion annually.

Communities across the country are feeling the benefit of the government’s increased investment in defence, new figures reveal.

In a significant boost to the UK economy, the Ministry of Defence spending with UK industry and commerce has seen a 3.2% increase in real terms spending, taking the total to £34.1 billion.

As the government accelerates efforts to reindustrialise Britain and strengthen deterrence, there has been a significant boost in investment in the electronic sector by 33%, ensuring UK industry can deliver at scale the modern capability and resilience the armed forces depend on.

The figures demonstrate how the government is placing the defence industrial base at the centre of national renewal, with rising investment helping to generate opportunities in towns and cities across the UK, increasing household incomes and giving people more breathing room.

Defence Secretary, Wes Streeting MP, said:

We cannot strengthen our deterrence without having a strong, sovereign defence industry here at home.

That’s why we are backing Britain, using the biggest sustained increase in defence spending since the Cold War to boost jobs and skills at home and to build the capability and technology we need to keep us safe in a more dangerous world.

The figures mark a substantial increase on the previous year, representing the highest level of UK industry investment since the statistics began in 2013/14.