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Defence companies sound warning to the UK

Executives say pace of spending needs to pick up to match promises to make country battle-ready

The UK defence industry ostensibly has a new champion — Sir Keir Starmer. In his speech to the Labour party conference last month, Britain’s Prime Minister hailed the government’s investment in defence as “undeniably good for growth” and “vital for national security”. 

Industry executives have welcomed the direction of travel and said they are ready to deliver. There have been some significant pledges; the government has said core defence spending will rise to 2.6 per cent of GDP by 2027 and to 3.5 per cent by 2035 — the largest sustained increase since the end of the cold war. 

The prospect of more money, coupled with a target to focus procurement on fast-growing areas such as autonomy and drones, has also led to a series of promises of inward investment; several defence technology start-ups, including Germany’s Helsing and Portugal-based Tekever, plan to open factories in the UK. 

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