Defence budget boost could bring South Hams jobs bonanza

'The numbers that were previously quoted may well be exceeded'

Government plans to crank up spending on defence could bring an unexpected jobs bonanza for the South Hams.

Defence spending is to increase to 2.5 per cent of the country’s gross domestic product from April 2027, rising to three per cent in later years.

Prime minister Sir Keir Starmer says it will drive economic growth, create jobs and bolster national security.

Defence companies such as Babcock are major players in the Devon economy, and key factors in the Plymouth Freeport project. Tax breaks and other incentives allow freeports to attract new businesses, investment and economic growth.

Babcock operates Devonport Dockyard among its other work.

Cllr John Birch (Lib Dem, Totnes) told members of the South Hams Council executive committee that the increase in defence spending would mean a ‘huge boost’ for jobs, not only at Babcock but also among its local suppliers.

He said: “There is every possibility that companies in this area who may not regard themselves as defence companies at the moment will have the opportunity to benefit from the increase in the defence budget.

“It will not only create jobs but it will also create economic growth across the district. We are in a strong position to reap the possible rewards coming from the defence review.”

Cllr Birch was asked if the council was still confident that the freeport project would provide the 3,500 new jobs which had been quoted previously. “The numbers that were previously quoted may well be exceeded,” he said.