Underfunded Defence Investment Plan risks limiting defence manufacturing growth
Commenting on the long-awaited Defence Investment Plan, Emily Sawicz, Director and Industrials Senior Analyst at RSM UK, said: “The long-awaited announcement of the Defence Investment Plan is a promising sign of support for defence manufacturers. However, the promised funding is not enough to drive long-term, sustainable growth for the sector.
“A credible defence investment plan is critical not just for national security, but for the wider UK economy. Sustained increases in defence spending could deliver a significant economic uplift, with much of the benefit flowing through domestic manufacturing and engineering supply chains given the relatively self sufficient nature of the UK defence industry.
“The lack of a sufficiently funded defence investment plan has held back private sector investment at a time of heightened geopolitical risk. Without long term clarity, defence manufacturers are unable to commit to capacity expansion, skills development or R&D, limiting the sector’s ability to respond effectively to rising demand.
“European peers have demonstrated the value of pairing higher defence spending with clear multi year investment frameworks, helping to unlock industrial growth and innovation. For the UK, publishing a credible plan will help strengthen readiness while supporting productivity, resilience and long term economic security.”