Confederation of British Industry Announces Defence Taskforce
Thursday 24th April 2025
As the Confederation of British Industry announces a Defence Taskforce, EMBS’s Managing Director James Hall looks at what this could mean for the engineering sector.
Today’s announcement from the Confederation of British Industry (CBI) regarding the establishment of a Defence and Economic Growth Taskforce signals a significant and positive shift for the UK economy. This is particularly good news for its thriving engineering sector.
Key government figures, including the Chancellor of the Exchequer and the Secretary of State for Defence, are backing this proactive initiative. Their support highlights the growing recognition that defence spending is not only vital for national security but also a powerful engine for economic growth and job creation.
Identify Opportunities
The Taskforce’s mission to identify opportunities for boosting UK productivity. This investments in defence capability and production couldn’t come at a more opportune time.
Recent collaborations, such as the UK and Germany working together on military bridging systems, demonstrate the strength of UK defence engineering. Furthermore, BAE Systems’ substantial US Army contract and Serco’s support for the US Navy highlight the global competitiveness of this vital sector.
Expansion in Nuclear Power
Ambitious plans for a historic expansion in nuclear power, championed by both the current government and the opposition, present a parallel surge in demand for engineering expertise. The Prime Minister’s call for tech companies to collaborate on Small Modular Reactors (SMRs) to power AI data centres adds another layer of exciting opportunities within the energy and technology sectors, closely intertwined with advanced engineering.
The UK government’s firm commitment to increasing defence spending to 2.5% of GDP by 2027 provides a clear and substantial financial foundation for this growth. The Defence and Economic Growth Taskforce, bringing together leaders from finance, investment and the defence industry, is poised to act swiftly. Their 12-week mission to deliver implementable recommendations to the government will ensure that these investments are strategically directed to maximise economic impact.
UK Engineering
So, what does this mean for UK engineering businesses? I think it translates directly into a wealth of new opportunities and a surge in demand for skilled professionals. From design and manufacturing to maintenance and technological innovation, the expansion in defence and related sectors like nuclear energy will necessitate a significant influx of engineering talent across all levels.
Small and Medium-sized Enterprises (SMEs) are particularly well-placed to benefit. Their agility and specialised skills make them ideal partners in supporting the larger defence and energy projects. I hope this growth will not only create new jobs but also foster innovation, drive technological advancements and strengthen the UK’s position as a global leader in engineering and defence.
Investment
The establishment of the Defence and Economic Growth Taskforce is more than just an economic strategy; it’s an investment in the future of British engineering and the skilled workforce that underpins it.
By strategically leveraging defence spending, the UK could unlock a wave of opportunities, creating high-value jobs and propelling economic growth for years to come.
