Healey promises to tackle blockers to private investment into defence industry

The Defence Secretary has said defence is an "ethical investment" and vowed to tackle anything that blocks increased private funding into the sector.

John Healey is looking to develop a new partnership to encourage financing for UK firms that supply the Armed Forces and is appealing to venture capital firms from across Europe to invest in the industry.

During a meeting in London, he pointed to the human and economic costs of conflicts like the war in Ukraine as an example of why increased investment is important.

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Mr Healey said: "In this new era of rising threats, national security isn't just a military imperative. It's the foundation for economic growth, securing Britain's future and our Government's Plan for Change.

"As Defence Secretary, I am determined to bring together investors, innovators and industry in a new partnership that drives British jobs and growth.

"We want to mobilise private investors to take a fresh look at defence, alongside the certainty of our Government's record long-term uplift in defence spending.

"With countries across Europe facing new threats stepping up to take more responsibility for our continent's defence is an ethical investment, and it's good to see increasing numbers of private investors recognising that. There is no more important investment than in our European security.

"As a government we are determined to tackle any blockers which are preventing private finance from flowing into UK defence, which is why today's landmark meeting is so important."

The Government has already pledged to increase defence spending, with 2.5% of GDP being invested by April 2027 and a commitment to hit 3% in the next Parliament.

A new £400m ringfenced budget for UK Defence Innovation was announced by the Chancellor in the Spring Statement along with a commitment to spend 10% of the MOD equipment budget on novel technologies.