Key facts
- UK defence contractors will create 40,000 apprenticeships, placements, and jobs for young people annually.
- The target for annual opportunities will increase to 50,000 by 2035.
- The initiative aims to tackle youth unemployment, with nearly 1 million 16- to 24-year-olds not in education, employment, or training.
- The Ministry of Defence aims to be a 'ministry of growth and opportunity'.
- Companies including BAE Systems, MDBA, Rolls-Royce, Babcock, Thales, and Airbus have signed pledges.
- Labour plans to increase defence spending to 2.7% of GDP from next year.
UK defence contractors have committed to creating 40,000 apprenticeships, work experience placements, and jobs for young people annually by 2030, with plans to increase this to 50,000 by 2035. The initiative, championed by Wes Streeting, aims to address the "moral emergency" of youth unemployment and align with the government's goal of re-industrializing Britain.
Streeting stated his ambition for the Ministry of Defence to be a "ministry of growth and opportunity," emphasizing that increased defense spending should directly benefit British jobs and industry. The pledges were made ahead of a roundtable with leaders from major contractors including BAE Systems, MDBA, Rolls-Royce, Babcock, Thales, and Airbus. The industry will also implement a "no wrong door" policy to help unsuccessful applicants find opportunities elsewhere in the defense supply chain.
This initiative comes as Labour plans to raise defense spending to 2.7% of GDP from next year, partly funded by cuts to overseas aid. While former Defence Secretary John Healey had advocated for a 3% target by 2030, current Chancellor Healey indicated that a decision on further increases would await a spending review. Analysts suggest that reaching higher spending targets may necessitate tax increases.
Alan Milburn, a former Labour cabinet minister, highlighted the importance of work experience for young people and praised the defense pledge as an example of employer commitment. The government is also rolling out a Jobs Guarantee scheme for long-term unemployed 18- to 24-year-olds.