UK defence review unlocks major investment in industry and supply chain

The UK Government’s Strategic Defence Review is set to trigger a multibillion-pound wave of investment across the country’s defence sector, with a strong emphasis on industrial capacity, digital modernisation and workforce development.

At the core of the plan is the expansion of the UK’s submarine fleet, with a commitment to build 12 new attack submarines. This is expected to significantly bolster the country’s submarine-building capabilities and sustain 30,000 specialist jobs into the next decade. The move aligns with the government’s broader commitment to its warhead programme, which has already received £15 billion in funding and will see further modernisation at the Atomic Weapons Establishment in Aldermaston.

The review outlines a national shift toward “warfighting readiness,” including expanded stockpiles of arms and critical equipment. Over the next ten years, 30,000 apprenticeships and 14,000 graduate roles will be created to meet long-term workforce demands in engineering, manufacturing and defence technology.

Cyber operations are set to undergo a significant transformation with the establishment of a new Cyber and Electromagnetic Command, designed to position the UK at the forefront of digital warfare. In parallel, over £1 billion will be invested in a new Digital Targeting Web—an initiative intended to enhance battlefield decision-making, intelligence and targeting through AI and integrated systems, informed by recent lessons from Ukraine.

The government also plans to procure up to 7,000 UK-built long-range weapons and construct at least six new munitions and energetics factories to reinforce domestic production capacity. However, locations have not yet been disclosed.

Defence spending continues to play a key role in regional economies. In 2023/24, the Ministry of Defence spent £28.8 billion with UK industry. The South West and South East saw the highest allocations, with £6.9 billion and £7.1 billion respectively. The South West led in per-capita terms, with £1,190 per person and 1,550 defence jobs per 100,000 residents. The region is home to major employers such as Babcock International, which operates from over 60 sites including Devonport and Filton, and Rolls-Royce’s Bristol site, where engines are built for the Eurofighter Typhoon and F-35 aircraft.

The review marks the first time the government has published a complete outline of its long-term defence investment strategy, signalling sustained demand for skilled talent, manufacturing capacity, and digital innovation across the sector.

Manufacturing contraction eases but headwinds persist

UK manufacturing activity contracted for the eighth consecutive month in May, but the pace of decline slowed slightly, according to the latest S&P Global Purchasing Managers’ Index (PMI). The index rose to 46.4 in May from 45.4 in April, indicating continued sector shrinkage below the neutral 50 threshold.

Firms reported falling output and new business as both domestic and overseas demand remained subdued. New orders declined for the eighth consecutive month, with clients reportedly hesitant to commit to spending amid higher employment-related costs and economic uncertainty.

The rise in the National Living Wage and increased employer National Insurance contributions, introduced in April, have added pressure to margins. The National Living Wage rose by 6.7% to £12.21 per hour, while employer NI contributions increased to 15% for salaries above £5,100.

Manufacturers also pointed to ongoing challenges with tariffs and freight costs, energy price volatility, and extended supplier lead times. Export demand weakened further due to continued global trade uncertainty and pricing pressures.

Despite these challenges, input price inflation eased to a five-month low, and some firms benefited from improved weather-related sales. However, the overall environment remains fragile, with limited signs of a near-term rebound.

Council decarbonisation project receives £265k boost

Rotherham Council is investing in a decarbonisation programme targeting energy upgrades across four public buildings, with £265,000 secured from the UK government’s Public Sector Decarbonisation Scheme.

The works, set for completion by March 2026, will see three eligible council properties fitted with low-carbon technologies such as heat pumps, solar panels, LED lighting, improved insulation, double glazing, and water-saving installations. The sites include Springwell Gardens, 115 Middle Lane South, and the Swinton Customer Service Centre and Library.

A fourth site, Peacock Lodge Children’s Home, did not meet grant criteria but will undergo similar upgrades using council funds.

The overall project is expected to cost £422,000, with the local authority contributing £156,000 from its decarbonisation budget. The upgrades are projected to reduce the council’s annual carbon emissions by around 30 tonnes, supporting its goal to reach net-zero operational emissions by 2030.

While the environmental impact is clear, the financial return is modest, with expected annual energy savings across all four buildings estimated at just £3,800.

Contractor procurement is expected to begin this summer, with construction scheduled to start in the autumn. Buildings were prioritised based on the condition of existing systems and their suitability for retrofit.

New partnership targets circular solution for PPE waste

MYGroup has partnered with the University of Leeds on a new initiative to address the increasing volume of high-visibility personal protective equipment (PPE) waste in the UK. The partnership, backed by Innovate UK through a Knowledge Transfer Partnership (KTP), aims to establish a scalable fibre-to-fibre recycling process that can convert decommissioned PPE into new raw materials for textile production.

Currently, less than 1% of garments globally are recycled back into new textiles, and an estimated 90% of used PPE, uniforms, and workwear end up in landfills. This project aims to demonstrate the commercial and technical feasibility of producing new yarns and threads from end-of-life PPE, thereby supporting a closed-loop system for the sector.

MYGroup, a specialist in waste management and recycling based in Yorkshire, already processes five tonnes of end-of-life PPE annually and collaborates with several manufacturers and retailers. Through this collaboration, it hopes to help its clients meet growing extended producer responsibility (EPR) obligations and move towards more sustainable supply chains.

The University of Leeds, home to the Leeds Institute of Textiles and Colour (LITaC), will contribute research expertise to accelerate development and industrial application of the recycling method. The project is also expected to stimulate innovation and green manufacturing in the Yorkshire and Humber region.

Hiring intentions surge as Yorkshire business sentiment strengthens

Business confidence in Yorkshire rose sharply in May, with more firms planning to expand their workforce and invest in growth, according to Lloyds Bank’s latest Business Barometer.

Confidence among Yorkshire businesses climbed by 18 points to 52%, significantly higher than the national average. Notably, 54% of regional firms now plan to increase staff over the coming year, up 35 points from April, signaling renewed optimism across the local economy.

The report also highlighted where businesses are prioritising growth. Nearly half of the surveyed firms in Yorkshire intend to invest in staff training, while 33% are eyeing entry into new markets or adopting new technology, both key indicators of strategic scaling and operational improvement.

At a national level, UK business confidence rose to 50%, the highest recorded since August 2024. Economic optimism jumped by 16 points to 44%, while firms’ confidence in their trading prospects also increased to 56%.

Sector performance was uneven. Construction and services reported the strongest sentiment, 56% and 54% respectively, while retail confidence declined to 40%, its lowest level since January. Manufacturing also edged up, though modestly, to 40%.

The positive regional results come amid mixed signals globally. While the IMF flagged potential drag from US tariffs, it upgraded the UK’s 2025 economic forecast, noting signs of a broader recovery.

Holtec confirms UK manufacturing base at Doncaster’s GatewayEast

US-based nuclear energy firm Holtec has chosen Doncaster’s GatewayEast as the site for its new UK manufacturing facility, following a national search across 13 regions. The location, adjacent to Doncaster-Sheffield Airport, secured the investment over two other shortlisted sites in South Yorkshire.

The facility will produce two small modular reactor (SMR) units annually, with half of its output intended for export. Holtec’s SMRs utilise pressurised water reactor (PWR) technology, the same type deployed at Hinkley Point C, which supports supply chain standardisation and workforce development.

The project is expected to generate significant economic value. Independent analysis by Bradshaw Advisory estimates £1.8bn in gross value added over 20 years, £1.5bn from the factory itself, and £300m from engineering services linked to SMR deployment. It is also forecast to support 3,600 construction roles, over 16,000 supply chain jobs, and 3,000 unionised engineering positions.

The site selection aligns with Holtec’s strategy to localise production and increase UK content in its energy and defence programmes, targeting 70% domestic sourcing. The company has signed MOUs with regional and national partners, including South Yorkshire Combined Authority, Sheffield Forgemasters, and major manufacturing research centres. Holtec is also in ongoing discussions with major UK trade unions to align with industrial workforce priorities.

This development follows the UK government’s £30m commitment to reopening Doncaster-Sheffield Airport, further positioning GatewayEast as a strategic hub for industrial investment and global export. Holtec is currently finalising the business plan ahead of its final investment decision.

Wykeland appoints new finance director

Yorkshire-based commercial property and investment business Wykeland Group has appointed Chris Crookham as finance director to succeed the retiring Ian Franks. Mr Crookham has joined Wykeland from major food and beverage manufacturer Sofina Foods Europe, where he has been finance director, UK added value, with responsibility for processing facilities across the country, for the past two and a half years. Sofina Foods Europe is a major player in the food industry, with leading brands such as Young’s Seafood, pork producer Cookstown and Greenland Seafood. The business supplies major supermarket chains and employs around 8,000 people in the UK, Ireland and on the continent. Previously, Mr Crookham was cluster financial controller for Young’s Seafood, following six years with UK safety industry leader Arco, latterly as group financial controller. A graduate of the University of Leeds, he began his career in finance with PwC, before joining global health and hygiene business Reckitt and then Arco. Mr Crookham said: “A big part of the appeal of this role is joining a business with such a strong vision and social conscience, which aligns with my own values. “Having grown up in East Yorkshire and living in the area, I’ve seen the really positive impact Wykeland has had, through developments like the Flemingate centre in Beverley and the Fruit Market regeneration in Hull. “I’m excited by the opportunity to be part of a business very much embedded in the local community and to play my part in continuing Wykeland’s great work at the forefront of investment and regeneration across the region.” Mr Crookham succeeds Ian Franks who is retiring after 18 years as finance director.. Mr Franks said: “Wykeland has been a very big part of my life and I’m very proud of the many projects we have delivered that have been commercially successful, while also bringing together physical, social and cultural regeneration. “It’s now time for me to step back and for an injection of fresh ideas and energy. I wish Chris every success in his new role and know Wykeland will continue to go from strength to strength.” Wykeland managing director Dominic Gibbons said: “We’re delighted to have appointed Chris to succeed Ian and build on his achievements. “Chris brings to Wykeland a great deal of relevant, high-level experience with industry-leading organisations and has a very broad skillset. “I would like to take this opportunity to express my thanks, and that of our Board and entire team, to Ian for his tremendous contribution. “Ian has played a very significant part in the development of the business over almost two decades. His financial expertise and sound judgement have been invaluable in the successful delivery of many of our most significant developments.”

Contractor appointment made for new Halifax leisure centre

The construction of a new leisure centre for Halifax town centre is moving forward, as Calderdale Council has appointed a contractor to focus on the final designs, costings and programme ahead of construction. The Council is delivering the new leisure centre in a central location, at North Bridge in Halifax. The project has been refined to ensure it will be financially sustainable and delivers facilities which are accessible, support health and wellbeing, boost the local economy and contribute to Calderdale’s Climate Action Plan. Following a competitive tender process, Tilbury Douglas has now been appointed as a contractor to deliver the detailed designs for the project. The new centre will include a main six-lane swimming pool with spectator seating, a learner pool, a refurbished eight-court sports hall, a 120-station fitness suite, three multi-functional studios, a dedicated cycling studio, a children’s soft play and adventure area, and a café and community area. There will also be wellbeing spaces, where health and community partners can locate their services, a wet changing village and a Changing Places facility for disabled people and separate dry change facilities for sports hall and gym use, as well as energy-efficient, sustainable features to contribute to Calderdale’s Climate Action Plan and the borough’s target for net zero carbon emissions by 2038. The contractor and the Council are also exploring options for undertaking early works on site in parallel to the design stage, to speed up the process to construction. The package of works would include demolition and associated works at the existing North Bridge Leisure Centre, as well as site setup, management and post-demolition surveys. Once the detailed design process and early enabling work is complete, work is due to begin on site later this year. Calderdale Council’s leader, Cllr Jane Scullion, said: “We know that people are eager to enjoy the new leisure centre in Halifax and we’re working hard to make sure that the modern and centrally located facility provides great opportunities for everyone to be more active, more often. “We’re ambitious about the project, and we have to make sure that it is financially viable and can be delivered successfully. We’ve secured government funding of over £12million to support the project and continue to seek additional external funding opportunities. “The appointment of a contractor for the detailed design work will enable us to have a clearer picture of what the centre will look like and how and when it will be delivered. We’re excited about the project and are keen to get things moving and have work start on site as quickly as possible.” Paul Ellenor, regional director for Yorkshire and the North East at Tilbury Douglas, added: “This project represents a significant investment in the health and wellbeing of the Halifax community. “Our role is to ensure that the new centre is not only high-quality and accessible but also delivered with pace, precision and long-term value in mind. We bring proven expertise in complex, sustainable developments and are fully committed to driving this landmark scheme forward with Calderdale Council.”

Endless LLP acquires specialist battery supplier

Leeds-based private equity firm Endless LLP has acquired the Ecobat Battery Division from the US-headquartered Ecobat Group, marking another strategic carve-out investment in the distribution sector. Ecobat Battery has turnover in excess of £200m and is a leading specialist supplier of batteries and energy storage solutions for a wide range of applications including automotive, commercial vehicles, marine and leisure, motorcycles, and industrial uses. With a strong presence across Europe and a network of distribution hubs in the UK, Ireland, France, Netherlands, Belgium and Spain, Ecobat Battery serves a diverse customer base. The acquisition by Endless will provide Ecobat Battery with the capital and strategic support to accelerate its growth plans, expand its market reach, and invest in its capabilities to further strengthen its commercial platform. The carve-out transaction will be led by Ecobat Battery’s existing management team, led by Russell McBurnie and Alex Powell. Russell McBurnie, managing director of Ecobat Battery, said: “This is an exciting new chapter for our business. Endless brings a wealth of experience in supporting specialist distribution businesses, and we are confident that their backing will help us unlock new growth opportunities and continue delivering exceptional value to our customers.” Andy Ross, investment partner of Endless, added: “We are delighted to welcome the Ecobat Battery Division into the Endless portfolio. The business has a strong heritage, a talented team, and a clear role to play in the battery distribution market. We look forward to working closely with the management team to support their growth strategy.” The investment was led by Andy Ross and Tom Callaghan, supported by Mia Fisher, Lee Abbott and Chloe Sellwood. Endless was advised by Stifel (Corporate Finance), Walker Morris (Legal), KPMG (Tax), PwC (Debt), Argon (Operational) and Panamoure (IT).

Nuclear waste site talks face shutdown in Lincolnshire

Lincolnshire County Council is preparing to exit discussions over hosting a Geological Disposal Facility (GDF) for the UK’s nuclear waste. This move would formally end the county’s involvement in a multi-year siting process led by Nuclear Waste Services (NWS).

A council scrutiny board has recommended withdrawing from the Theddlethorpe GDF Community Partnership, with a final decision expected from the Executive on 3 June. This follows East Lindsey District Council’s decision to pull out in April.

The partnership, established in 2021, was initially focused on repurposing a former gas terminal near Theddlethorpe. However, in early 2025, NWS shifted its proposed location inland, targeting undeveloped countryside between Gayton le Marsh and Great Carlton, triggering opposition and claims of inadequate community engagement.

Lincolnshire is one of three areas under consideration for the underground repository, alongside Mid and South Copeland in Cumbria. A recent geological assessment highlighted Lincolnshire’s clay formations as highly suitable for long-term waste isolation. Nonetheless, public sentiment in the area has turned against the project, with community surveys indicating strong opposition.

Under the GDF programme, host communities are eligible for up to £1 million in annual government funding during the siting phase, with over £2 million already allocated to local initiatives in Lincolnshire. However, ongoing concerns about transparency, shifting site plans, and long-term uncertainty have led local representatives to question the benefits of continued involvement.

NWS maintains that community consent is a prerequisite for any development and has pointed to international precedents, such as Canada’s recent GDF siting process, to justify the timeline and complexity. Still, if Lincolnshire formally exits next week, the agency will be left with just the two Cumbrian sites in active evaluation.