Britain’s major defence contractors have committed to providing 40,000 opportunities a year for 18- to 24-year-olds by 2030, as Defence Secretary Wes Streeting argued that a substantial rise in public spending can expand UK industry while tackling youth unemployment.
The promised opportunities will include work experience, apprenticeships and permanent employment. The industry has also agreed to adopt a “no wrong door” system, directing unsuccessful candidates to vacancies or training elsewhere in the defence supply chain.
A defence-led route into work
Streeting made the announcement as he addressed representatives from BAE Systems, MDBA and Rolls-Royce, alongside other signatories including Babcock, Thales and Airbus.
He presented the commitments as part of a broader effort to ensure that higher defence expenditure produces tangible benefits for British workers and communities. Labour is seeking to show that planned increases in military spending, which could eventually require tax rises, will support employment rather than simply expand the defence budget.
The government is particularly concerned about the nearly one million 16- to 24-year-olds in Britain who are not in education, employment or training. Streeting described this as a “moral emergency” and said the ministry should use its purchasing power to open doors for young people.
“I think we have a responsibility, as we’re investing more in the defence of the realm, to do so in a way that boosts British jobs, British industry, and helps to deal with this moral emergency,” he said.
He added: “I want the Ministry of Defence to be a ministry of growth and a ministry of opportunity, and that’s how we’re going to direct our defence spending.”
Under the industry pledge, each company will contribute to a combined annual total of 40,000 opportunities by 2030. That figure is expected to rise to 50,000 by 2035, although the agreements centre on access to the sector rather than a guarantee that every participant will secure permanent employment.
Growth beyond London and the South East
Streeting also positioned the defence industry as a vehicle for re-industrialisation. He said most defence expenditure already takes place outside London and the South East, giving the sector a natural role in spreading economic opportunity across the country.
“The overwhelming majority of defence spending takes place outside London and the south-east. So in terms of the prime minister’s ambition for re-industrialisation of Britain, growth in every postcode and opportunity spread throughout the land, defence is already there and ready to deliver,” he said.
The message follows former Labour leader Andy Burnham’s campaign to rebuild manufacturing and create jobs in towns and regions that have struggled to attract investment. Defence firms have substantial sites and supply networks across the UK, offering the government an existing industrial base through which to pursue that agenda.
For contractors, the pledges may also strengthen their case for public investment. Workforce development, technical training and long-term supply-chain contracts can all become part of wider negotiations over Britain’s future defence capability.
The 3% spending target awaits a decision
Labour has announced plans to raise defence spending to 2.7% of gross domestic product from next year, partly funded through sharp reductions in overseas aid. Reaching the 3% level previously demanded by the ministry remains unresolved.
John Healey resigned as defence secretary in June, arguing that the target should be met by 2030. Now serving as chancellor, however, he has not committed the government to that timetable, leaving the decision until a spending review planned for next year.
Asked whether he expected the 3% target to be delivered, Streeting defended his colleague’s record.
“I believe that the John Healey that I work with day-to-day as chancellor is the same John Healey that I worked with when he was defence secretary, with the same commitment to our national security and our economic prosperity,” he said.
He urged critics to wait for the government’s fiscal decisions. “I would urge people to wait for the budget, wait for the spending review. I feel confident that we will deliver the investment that this country needs to secure our national security.”
With other Whitehall departments facing tight budgets during the final years of this parliament, many analysts believe reaching 3% of GDP will require higher taxation or further spending cuts. The coming review is therefore likely to determine whether the ambition is matched by a credible funding plan.
Testing the pledge against the youth jobs crisis
The industry commitments come ahead of former Labour cabinet minister Alan Milburn’s final report on young people not in education, employment or training. Milburn has emphasised the value of workplace experience in helping teenagers understand possible careers and prepare for recruitment.
He said the defence pledge “shows what is possible when employers step up” and argued that the sector has the scale to provide young people with the experience, skills and confidence needed to build a career.
“Defence is one of our great industries – it has both the scale and the opportunity to give young people the experience, skills and confidence they need to build a career,” he said.
The private-sector initiative will sit alongside Labour’s Jobs Guarantee, which offers taxpayer-funded work placements to 18- to 24-year-olds who have been unemployed for at least 18 months
