London, UK – The UK government and leading businesses today, July 8, 2025, unveiled a comprehensive strategy dubbed “Team UK”, aimed at unlocking the full economic potential of the nation’s defence sector. The initiative seeks to leverage the sector’s capabilities not only for national security but also to foster economic growth and create jobs across the country.
Announced following recommendations from the Defence and Economic Growth Taskforce, the plan introduces measures designed to ensure that increased government defence spending translates into tangible benefits for the public. A key proposal involves the development of Regional Defence Growth Deals, intended to tailor investment and development strategies to specific areas, maximising local economic impact.
Investing in Future Capabilities and Jobs
A cornerstone of the new strategy is catalysing private investment in cutting-edge defence technology. As part of this drive, defence technology firm Helsing is set to open the UK’s first Resilience Factory later this year in Plymouth. This facility represents a significant acceleration of Helsing’s £350 million “Trinity House private investment” in Artificial Intelligence.
This substantial investment is projected to create a significant number of specialist high-value jobs, both in the South West region, where Plymouth is located, and nationwide. Helsing has signalled its intent to double the size of its UK operations, underscoring the potential for job creation inherent in this collaboration.
Plymouth: A Hub for Marine Autonomy
The new facility in Plymouth is envisioned as the national centre of marine autonomy. This strategic location and specialised capability will be crucial for providing allied navies with advanced, AI-powered miniature submarines designed to safeguard critical underwater infrastructure. This specific focus highlights the strategic importance of technological innovation within the broader defence context.
Orchestrating the Strategy: A Government-Business Dialogue
The Taskforce’s recommendations were officially launched at a Ministry of Defence roundtable. The event was chaired by two key figures: Chancellor Rachel Reeves and Defence Secretary John Healey, signalling the high level of government commitment to this initiative.
A central recommendation championed at the roundtable is the “Team UK” strategy itself. This approach advocates for enhanced collaboration between government, industry, and academia to boost the UK’s global competitiveness, fostering innovation, job creation, and prosperity across the UK. The strategy also calls for significant reforms to procurement and contracting processes within the defence sector, aligning them more closely with the objectives outlined in the Strategic Defence Review.
Dual-Use Technologies and Economic Context
The strategy places particular emphasis on prioritising investment in “dual use” technologies. These are innovations applicable to both civil and military purposes, promising to yield benefits that extend beyond defence into the wider economy.
The timing of this announcement follows the release of recent figures illustrating the defence sector’s existing economic contribution. Data shows that 151,000 UK jobs are directly supported by the MOD’s industry spending, an increase of 14,000 from the previous year. This growth underscores the sector’s potential as an economic engine.
Chancellor Rachel Reeves commented on the strategic necessity of the initiative, stating that a new era of threats necessitates a new era for defence and security. She cited this evolving threat landscape as the justification for the government’s decision to increase defence spending to 2.6% of GDP by April 2027, framing the “Team UK” approach as vital for maximising the impact of this increased investment.
Conclusion: Leveraging Defence for National Prosperity
The “Team UK” strategy represents a concerted effort by the British government and private sector to transform the defence industry into a powerful catalyst for national economic development. By fostering collaboration, streamlining processes, and investing in strategic technologies like AI and marine autonomy, the initiative aims to enhance the UK’s security posture while simultaneously generating high-value jobs and driving prosperity across the nation.
