BBC Wales News reporters David Deans and Cemlyn Davies discuss the potential benefits for Wales due to the UK government’s plan to increase defense spending. Prime Minister Sir Keir Starmer aims to raise military budgets to 2.5% of GDP by 2027, with cuts to foreign aid funding the increase. Treasury Minister Darren Jones believes this could be a significant opportunity for the UK economy, including Wales, as he visited Airbus in Newport.
Mark Drakeford, the Finance Secretary for Wales, anticipates that Wales will receive a portion of the additional funds. Over 160 companies in Wales support the defense sector, providing employment for more than 20,000 individuals. Companies such as BAE Systems and General Dynamics have significant operations in Wales, contributing to the country’s defense industry.
As part of his UK tour before the spending review, Jones emphasized the potential for growth in defense companies and technologies, offering various opportunities for Welsh businesses and workers. The visit to Airbus’s facility highlighted the role Wales plays in the defense supply chain, particularly in producing security systems for the Ministry of Defence and the private sector. With ongoing strategic defense reviews and budget allocations happening, Jones assured that the government would prioritize spending the allocated funds effectively.
Drakeford acknowledged Wales’s substantial contribution to the UK’s armed forces and expressed confidence in Wales receiving its fair share of the additional investment. Despite the challenges posed by reallocating funds from international aid to defense, Drakeford recognized the evolving global landscape and the need for tough decisions. He remarked on the delicate balancing act faced by Sir Keir in navigating these changes. The meeting between Jones, Drakeford, and finance ministers from Scotland and Northern Ireland highlighted ongoing discussions on issues like High-Speed 2 rail and the devolution of the Crown Estate, demonstrating the complexities of aligning priorities within the UK government
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