South Yorkshire has been selected as one of five regions to receive targeted investment under the UK Government’s new Defence Industrial Strategy. The plan allocates £250 million over five years through a Defence Growth Deal aimed at boosting regional economies and creating jobs in defence-related sectors.
The region’s expertise in engineering, research, and materials production, including specialist steel for advanced maritime, land, and air systems, was cited as a key factor in its selection. Early estimates suggest rising defence spending could generate demand for up to 50,000 additional jobs across the UK by 2034/35.
The Defence Growth Deals will link businesses, local and national government, and academic institutions to foster innovation, support SMEs, and strengthen industrial capabilities. Similar deals will be established in Plymouth, Wales, Scotland, and Northern Ireland.
The strategy aims to make the UK a competitive location for defence companies while reducing regulatory barriers for domestic firms seeking to pursue export opportunities. It follows the announcement of a deal to supply Norway with five Type 26 frigates, valued at £10 billion and supporting more than 4,000 UK jobs.
Officials highlighted that the initiative is designed to build regional industrial resilience, respond to future defence challenges and expand high-skill employment opportunities in areas including South Yorkshire, where companies can leverage emerging technologies in quantum computing and material sciences.
