Strategic investment in the Midlands’ defence sector could create up to 38,000 high-value jobs and add almost £3 billion to the UK economy over the next decade, according to a new prospectus launched in Parliament.
The prospectus, The Midlands: Powering UK Defence Growth, was unveiled at a Midlands All-Party Parliamentary Group (APPG) event in Westminster, hosted by Midlands Mayors Claire Ward and Richard Parker and sponsored by Babcock International.
Chancellor Rachel Reeves and industry minister Chris McDonald were among those who joined leading business figures and MPs from across the region to hear how the Midlands can play a leading role in delivering the UK’s future defence capability.
With the Government increasing security spending and placing greater emphasis on strengthening UK manufacturing and supply chains, the prospectus sets out the case for a Midlands Defence Growth Deal to help translate this rising national defence investment into jobs, innovation and industrial growth.
Mayor of the East Midlands, Claire Ward said: “The Midlands already has the skills, businesses and manufacturing expertise the country depends on – and we have an even bigger role to play in supporting the UK’s defence in the years ahead.
“Our Defence and Security Blueprint shows what can happen when government, industry and our regions work together. This prospectus is about taking that further, so rising defence investment creates real opportunities for Midlands businesses, skilled jobs for local people and stronger supply chains here in the UK.
“A Midlands Defence Growth Deal would help our manufacturers, engineers and innovators do even more – supporting national security, while ensuring communities across our region feel the benefit.”
Richard Parker, Mayor of the West Midlands, said: “Our message to Government is clear: invest in our world-class technical know-how\ and manufacturing capabilities, and we’ll help keep our country and our way of life safe.
“There’s big gains to be made with billions flowing into a sector I’m backing to fire up our economy, and which will deliver thousands of the high-quality jobs and apprenticeships that I promised local people in my Growth Plan. It’s a triple win: for our communities, our economy and our national security.”
The prospectus argues that the Midlands is uniquely placed to support the UK’s defence ambitions thanks to its concentration of advanced manufacturing, engineering and technology businesses. It estimates that strategic investment could generate up to £2.9 billion in additional direct GVA by 2035, while Ministry of Defence spending with Midlands small and medium-sized businesses is projected to reach £250 million a year within five years.
It identifies five nationally significant areas of capability where the region already has internationally recognised strengths:
The proposed Midlands Defence Growth Deal would bring together government, industry and regional partners to expand production capacity, accelerate innovation, strengthen sovereign supply chains and develop the skilled workforce needed to meet growing demand.
The launch builds on the Midlands Defence and Security Blueprint and the work of the Midlands Defence and Security Industry Council, which are helping manufacturers, engineers and technology businesses secure new opportunities while supporting national security and creating high-quality jobs across the region.
Published on: 15 July 2026
Categories: News, Economic Development