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Extra defence cash could be spent in Wales

Extra defence cash could be spent in Wales

BBC News27-02-2025

Wales could benefit from plans to boost the UK's spending on defence, a treasury minister has said.Prime Minister Sir Keir Starmer said he would boost military budgets to 2.5% of GDP by 2027, funded by cuts to foreign aid.On a visit to Airbus, in Newport, Darren Jones said it was a "great opportunity for the UK economy, including here in Wales".Finance Secretary for Wales, Mark Drakeford, said he expects a "share" of the extra cash to be spent in the country.
More than 160 companies supporting the defence sector have operations based in Wales, employing over 20,000 people.Firms include BAE Systems, which has a munitions facility in Monmouthshire, and General Dynamics, which is constructing its AJAX armoured vehicles in Merthyr Tydfil.On Thursday Jones and Drakeford visited Airbus's complex on the outskirts of Newport, which provides security systems for the Ministry of Defence and other private companies.The treasury minister is on a tour of the UK ahead of the spending review - a major announcement which will set out how the government allocates cash for public services.Asked if Wales could benefit from the defence announcement the chief secretary to the Treasury, told BBC Wales: "Yes."Potentially we are spending more money on defence companies and defence technologies, which is a great opportunity for the UK economy, including here in Wales."He said there would be "plenty" of opportunities for businesses and workers at firms including Airbus."We've got the strategic defence review happening at the moment, the spending review will be concluded in June. Once we've done all of that, decided the strategy and the budget we will then just be getting on with spending that money."
Drakeford said: "Wales already makes a larger proportionate contribution to other parts of the UK to our armed forces. "We would certainly be able to see Wales get its share of a very important additional investment."Asked how he felt about the cuts to international aid to fund the military, the former first minister added: "There are some very difficult decisions."The world is changing around us and not changing in a way where it is easy to see how the pieces will all eventually fall."He said Sir Keir faced a "difficult balancing act".
The visit came ahead of meeting between Jones, Drakeford and finance ministers from Scotland and Northern Ireland. On wider UK government spending, Drakeford said he did not find it "frustrating" that there was divergence between the two Labour-run governments.Issues include High Speed 2 rail, which the Welsh government says should generate a financial benefit for Wales, and on the devolution of the Crown Estate."I think it is natural and normal," said Drakeford. "The responsibility for the Welsh government is to speak up for the things we know to be important here in Wales."Drakeford said the Welsh government continues "to have very productive discussions" on rail, where there is hope the UK government will invest in new stations.Jones said he did not want to be "relitigating the arguments of a past Conservative government".But he said there was a "shared ambition" over rail investment.

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