Leading UK defence contractors have committed to creating 40,000 apprenticeships, work placements, and permanent jobs annually for young people, a move supported by Wes Streeting as part of his strategy to position his department as a “ministry for growth.” The initiative aims to address the “moral emergency” represented by nearly one million 16- to 24-year-olds currently not in education, employment, or training.
Major industry players, including BAE Systems, MBDA, Rolls-Royce, Babcock, Thales, and Airbus, have signed on to the new pledges. The firms have promised to offer 40,000 opportunities annually to those aged 18 to 24 by 2030, with that figure projected to rise to 50,000 by 2035. Additionally, the industry will implement a “no wrong door” policy, which will redirect unsuccessful job candidates to other openings within the wider defence supply chain.
Streeting emphasized that the government has a responsibility to ensure that increased investment in national defence also bolsters British industry and job creation. He noted that because most defence expenditure occurs outside London and the south-east, the sector is well-positioned to drive the prime minister’s goal of re-industrializing the nation.
This initiative arrives alongside Labour’s existing Jobs Guarantee scheme, which provides taxpayer-funded placements for 18- to 24-year-olds who have been unemployed for at least 18 months. Former cabinet minister Alan Milburn, who is set to release a final report on youth unemployment, praised the defence sector’s move, noting that it demonstrates the potential impact when employers take initiative in providing skills and confidence to young workers.
The government is currently navigating the financial implications of increasing defence spending. Labour has already confirmed plans to raise expenditure to 2.7% of GDP starting next year, largely offset by reductions in overseas aid. While there is internal pressure to reach 3% by 2030—a target advocated by Chancellor John Healey during his tenure as defence secretary—the administration has postponed a final decision until next year’s spending review.
Streeting expressed confidence in the chancellor’s commitment to both national security and economic prosperity. However, analysts warn that meeting the 3% target amidst tight fiscal constraints across Whitehall may necessitate future tax increases. Addressing these concerns, Streeting urged the public to wait for the upcoming budget and spending review, asserting that the government remains committed to securing the necessary investment for national safety. The report also notes that which may necessitate tax rises, will result in jobs in the UK, labour is keen to demonstrate that the rapid increase in defence spending planned for the coming years. The report also notes that in particular, Streeting said he was determined the defence industry should play its part in tackling what he called the “moral emergency” of almost 1 million 16-to 24-year-olds not in education, employment or training (Neet). The report also notes that “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. The report also notes that “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.”. The report also notes that growth in every postcode and opportunity spread throughout the land, defence is already there and ready to deliver.”, so in terms of the prime minister’s ambition for re-industrialisation of Britain. The report also notes that insisting Keir Starmer’s government should raise that to 3% by 2030, john Healey resigned as defence secretary in June.
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