£50m Defence Growth Deal to drive jobs, skills and innovation across Northern Ireland

Northern Ireland’s defence sector is set for a major expansion following the launch of a £50 million Defence Growth Deal, aimed at boosting start-ups, strengthening supply chains and creating highly-skilled jobs across the region.

The investment, announced by the UK Government, is designed to help small and medium-sized enterprises (SMEs) and emerging defence technology companies break into the defence supply chain, while accelerating innovation and long-term economic growth.

Major investment targets jobs, skills and innovation

The £50 million package forms part of a wider UK-wide defence growth programme and is expected to support hundreds of well-paid jobs in Northern Ireland, particularly in engineering, technology and advanced manufacturing.

Ministers confirmed the funding will underpin a targeted programme to help SMEs scale up, collaborate with larger defence firms and bring new products to market. It also aims to remove barriers that have traditionally made it difficult for smaller companies to access defence contracts.

Northern Ireland already benefits from more than £271 million in annual defence spending with industry, supporting around 900 jobs. The new deal is intended to build on that foundation, expanding the region’s role in the UK’s defence ecosystem.

Secure Innovation Hub to level the playing field

A central element of the deal is the creation of a new Secure Innovation Hub, which will provide dedicated research and development space for SMEs and start-ups.

The facility is designed to allow smaller firms to operate on equal footing with major defence contractors, offering secure environments where sensitive technologies can be developed and tested.

The programme will also prioritise dual-use technologies — innovations that can serve both military and civilian purposes — ensuring wider economic benefits beyond defence.

Skills funding to support future workforce

Alongside the £50 million investment, additional funding will support a new skills initiative focused on defence-related disciplines.

The initiative will see collaboration between industry, colleges and universities to develop expertise in areas such as engineering and advanced technologies. It is expected to create new pathways for students and apprentices into long-term careers in Northern Ireland.

The move aligns with the UK Government’s broader “Pride in Place” programme, aimed at creating sustainable employment opportunities in local communities.

Ministers highlight Northern Ireland’s strategic role

Defence Minister Luke Pollard and Northern Ireland Office Minister Matthew Patrick marked the launch during a visit to Belfast Met College, where they met industry leaders and academic representatives.

Luke Pollard MP said:

“Northern Ireland plays a pivotal role in keeping the UK and our allies safe. In Belfast we build missiles that take down Iranian drones threatening our bases and allies in the Middle East. Belfast also builds the air defence systems that keep Ukraine in the fight against Putin’s illegal war.

“Defence is an engine for growth and the MOD is proud to be working with the Northern Ireland Office and the Executive to create more jobs, more opportunities for apprentices and graduates and more investment in Northern Ireland’s defence industry.”

Matthew Patrick MP added:

“This deal is good news for Northern Ireland, the United Kingdom, and our allies - investing £50 million in our talent, our economy and our resilience.

“This Defence Growth Deal has been shaped by businesses large and small - our universities, apprentices and representative bodies.

“With this deal, Northern Ireland businesses enjoy a vote of confidence which will help them secure bigger and better deals.”

Industry strength and existing defence footprint

Northern Ireland already has a significant defence manufacturing base, including major facilities such as Thales’ Belfast factory.

The government recently supported a £1.6 billion contract for 5,000 lightweight multi-role missiles (LMM) for Ukraine, a deal that has enabled Thales to double production in Belfast and plan the recruitment of 300 additional staff.

The region is also home to SMEs such as AI-focused companies Whitespace and KX, which play a key role in supplying advanced technologies within the defence sector.

Overall, the sector supports around 9,000 jobs and generated approximately £2.2 billion in business last year, underlining its importance to the local economy.

Industry leaders welcome long-term growth potential

Joseph Reffitt, Northern Ireland Director at ADS, said:

“We are delighted to see the government launch its fifth and final Defence Growth Deal here in Northern Ireland. The Northern Irish defence sector already makes a substantial contribution to the local economy, supporting well-paid, highly skilled jobs right across the region. While the detail will be pivotal, we hope this deal will help build on our existing strengths by investing in the engineering capability and the workforce we are known for.

“ADS has been pleased to work closely with regional partners, the Ministry of Defence and our members to help unlock Northern Ireland’s full potential, and we look forward to continuing that collaboration to ensure these initiatives deliver long-term, sustainable benefits for industry and the communities we support.”

Political reaction highlights economic impact and division

Ulster Unionist MP Robin Swann welcomed the investment, describing it as recognition of Northern Ireland’s strategic importance.

He said:

“This investment is a vital commitment to Northern Ireland’s role in our national security. During my discussions with Defence Secretary John Healey MP, I championed our world-class engineering expertise and our strategic capacity to support the United Kingdom’s defence.

“We live in a time of growing global instability where threats are continually evolving. Having a robust defence must be a national priority.

“This investment will be a major boost for our local economy by driving high-skilled job creation and integrating our innovative small businesses into the UK defence supply chain and that is warmly welcomed.”

TUV leader Jim Allister MP also supported the announcement, stating:

“I welcome the announcement of this significant investment totalling some £50 million in defence contracts in Northern Ireland. At a time when our economy needs confidence, jobs and long-term stability, any credible inward investment that strengthens our industrial base and creates employment must be supported.

“The nature of this investment and the quality jobs it will both create and sustain demonstrates the benefits of being part of the UK and contributing to the wider defence industry across our nation. Northern Ireland has already been at the forefront of producing weapons which have been deployed in the fight for freedom in Ukraine.

“It is vital that we build on this momentum and ensure that opportunities like this translate into real jobs, skills, and prosperity for our people.”

He also criticised Sinn Féin’s absence from the launch event, adding:

“That said, it is predictable that the Sinn Fein Economy Minister and the self styled First Minister for all have chose to boycott the event associated with this investment.

“Happy to glorify the acts of terrorists just weeks ago at Easter - something which was even promoted on the Executive Twitter feed - but not prepared to be seen when our UK defence industry brings quality jobs to Northern Ireland.

“No one is fooled by Sinn Fein/IRA’s talk of peace and opposition to war. The innocent victims of Republican terror know only too well that they wallow in the blood of countless innocent victims every time they justify and defend the Provisional murder campaign.

“Today is a reminder that whatever the spin the reality of Sinn Fein’s narrow anti British agenda always comes through whenever one bothers to scratch the surface. More generally of course it is no surprise that a party which has no interest in the success of Northern Ireland cannot even bring itself to welcome £50 million of investment.”

DUP Leader Gavin Robinson MP described the deal as a “major vote of confidence” in Northern Ireland’s industrial base.

He said:

“This £50 million investment is a hugely significant boost for Northern Ireland and a major vote of confidence in the skills, innovation and manufacturing expertise we have to offer. Out of a £250 million UK-wide fund, Northern Ireland has secured one of only five growth deals, representing a substantial share of the total package.

“For too long, Northern Ireland did not receive its fair share of Ministry of Defence spending, and the DUP has consistently highlighted that disparity. Knowing these growth deals were being developed, I, alongside DUP colleagues, worked directly with Government to make the case that Northern Ireland deserved its place at the table. Today that effort has delivered real results.

“This funding will support local businesses, strengthen supply chains, create highly skilled jobs and open new opportunities for young people leaving our universities and colleges. Northern Ireland already has over 9,000 people employed in this sector and generated around £2.2 billion of business last year. This investment can help grow that success even further.

“It is puerile of Sinn Fein to continue to oppose opportunities that support workers and families here.

“The First Minister and Economy Minister ought to be championing investment in Northern Ireland to create opportunities for local people and local business, but instead they choose ideological grandstanding.

“The DUP will continue backing jobs, industry and investment. This package is about economic growth, innovation and ensuring Northern Ireland gets the support it deserves.”

Defence spending expansion forms part of wider strategy

The deal is part of the UK Government’s wider Defence Industrial Strategy and a significant increase in defence spending, set to reach 2.6% of GDP from 2027 — the largest sustained rise since the end of the Cold War.

The Northern Ireland Growth Deal is the fifth and final agreement under the programme, signalling a coordinated push to position the UK at the forefront of defence innovation across NATO.

---

At a glance

• £50 million Defence Growth Deal launched for Northern Ireland

• Aims to support SMEs, start-ups and defence supply chains

• Expected to create hundreds of high-skilled, well-paid jobs

• Northern Ireland already benefits from £271m annual defence spending supporting 900 jobs

• New Secure Innovation Hub to support R&D for smaller firms

• Additional funding to develop engineering and technology skills

• Defence sector employs around 9,000 people and generates £2.2bn annually

• Thales Belfast expanding after £1.6bn missile contract for Ukraine

• Deal part of wider UK defence spending increase to 2.6% of GDP by 2027