UK defense spending with domestic industry hits record $45B

UK government spending with the domestic defense industry rose 3.2% to a record £34.1 billion ($45 billion) in 2025-26, the government said Thursday.

In a statement, the Defense Ministry said investment in the UK defense sector reached its highest level since records began.

Direct spending with smaller firms also increased to £1.3 billion ($1.7 billion) annually, the ministry said.

Northern Ireland recorded the largest percentage increase in defense spending, up 63%, followed by the East of England at 24.7% and the East Midlands at 21%, as investment reached communities across the UK, it added.

“We cannot strengthen our deterrence without having a strong, sovereign defence industry here at home,” Defense Secretary Wes Streeting said in the statement.

He added: “That’s why we are backing Britain, using the biggest sustained increase in defence spending since the Cold War to boost jobs and skills at home and to build the capability and technology we need to keep us safe in a more dangerous world.”

The ministry said the figures build on the Defense Investment Plan, which commits £298 billion ($393 billion) to UK defense over the next four years.