Defence contractors have promised to create 40,000 apprenticeships, work experience placements and jobs for young people each year, as Wes Streeting claimed to be overseeing a “ministry for growth”.
Labour is keen to demonstrate that the rapid increase in defence spending planned for the coming years, which may necessitate tax rises, will result in jobs in the UK.
In particular, Streeting said he was determined the defence industry should play its part in tackling what he called the “moral emergency” of almost 1 million 16-to 24-year-olds not in education, employment or training (Neet).
“I think we have a responsibility, as we’re investing more in the defence of the realm, to do so in a way that boosts British jobs, British industry, and helps to deal with this moral emergency,” he said.
“I want the Ministry of Defence to be a ministry of growth and a ministry of opportunity, and that’s how we’re going to direct our defence spending.”
The defence secretary was speaking before a roundtable with leaders from large contractors, including BAE Systems, MDBA and Rolls-Royce.
The firms have signed up to a series of pledges aimed at opening up more opportunities for young people.
They have promised to offer 40,000 18- to 24-year-olds each year an opportunity in the sector by 2030 – whether via work experience, an apprenticeship or a permanent role. That is scheduled to rise to 50,000 by 2035.
The industry has also pledged to implement a “no wrong door” approach, signposting unsuccessful applicants to opportunities elsewhere in the defence supply chain.
Other signatories include Babcock, Thales and Airbus. Streeting said he saw the projected increase in defence spending as an opportunity to pursue Andy Burnham’s goal of re-industrialising the UK.
“The overwhelming majority of defence spending takes place outside London and the south-east. So in terms of the prime minister’s ambition for re-industrialisation of Britain, growth in every postcode and opportunity spread throughout the land, defence is already there and ready to deliver.”
Labour has already set out plans to increase defence spending to 2.7% of GDP from next year, funded in part by sharp cuts in the UK’s overseas aid budget.
John Healey resigned as defence secretary in June, insisting Keir Starmer’s government should raise that to 3% by 2030. As chancellor, however, he has made clear he is not ready to commit to that target, with the decision postponed until a spending review planned for next year.
Asked about the timetable for hitting 3% of GDP, Streeting said: “I believe that the John Healey that I work with day-to-day as chancellor is the same John Healey that I worked with when he was defence secretary, with the same commitment to our national security and our economic prosperity.”
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He added: “I would urge people to wait for the budget, wait for the spending review. I feel confident that we will deliver the investment that this country needs to secure our national security.”
Given tight spending plans across other Whitehall departments for the final years of this parliament, many analysts believe hitting the 3% target is likely to require tax increases.
The defence jobs initiative comes before the publication of former Labour cabinet minister Alan Milburn’s final report on Neets.
Milburn has underlined the importance of work experience in preparing young people for a job, and opening their eyes to potential careers. He said the defence pledge “shows what is possible when employers step up.”
“Defence is one of our great industries – it has both the scale and the opportunity to give young people the experience, skills and confidence they need to build a career,” he added.
Labour is already rolling out a Jobs Guarantee scheme for 18- to 24-year-olds who have been out of work for at least 18 months – with the promise of a taxpayer-funded work placement.
