"Defence industrial superpower" plans set out by Rachel Reeves with boost to Royal Navy, Army and RAF spending

The News will be providing updates from the Spring Statement, with defence spending being top of the agenda.

Rachel Reeves is due to speak in parliament at roughly 12.30pm this lunchtime.

Discussing the extra funding for Portsmouth Naval Base, Portsmouth North MP Amanda Martin said: “Today’s announcement by the Chancellor is fantastic news for our city.

“This delivers security for working people across our country and cements Portsmouth as the home of the Royal Navy.”

She added: “We are constantly banging the drum to ensure our city gets the investment it needs and deserves. This announcement is good for jobs, good for our city, and good for the country’s future security.”

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The Ministry of Defence (MoD) has signed a five-year contract extension with Babcock to provide tanks, armoured vehicles and other equipment.

A £1.6bn extension was agreed to cover military assets including Challenger 2 tanks, 105mm artillery guns and Trojan armoured vehicles - maintaining 1,600 jobs in the process.

Defence secretary John Healey said: “Tanks, armoured vehicles and kit are the backbone of the British Army. 

“We are taking action to ensure the outstanding service men and women of our Armed Forces are properly equipped and ready to respond to ever-changing global threats. “

He added: “National security is the bedrock of a successful economy and our Government’s Plan for Change.”

Dragonfire energy weapons are due to be fitted to four Royal Navy warships, according to Forces News.

Reporter Sian Grzeszczyk said: “Armed Forces Minister @LukePollard tells me @RoyalNavy will get #dragonfire directed energy weapons on 4 destroyers as part of the extra £2.2 billion #defence funding which will be announced by the Chancellor @RachelReevesMP today.”

Stephen Morgan, Labour MP for Portsmouth South, believes the city will play a vital role in the government’s defence strategy.

He said: “As the heart and home of the Royal Navy, Portsmouth has played a leading role in our nation’s defence for centuries. Today’s announcement will help ensure that remains the case long into the future.

“I have long campaigned for investment in the Naval Base so I’m delighted to see this Labour government delivering this at the Spring Statement. The Chancellor’s announcement will make our city an engine for growth, delivering major infrastructure improvements, new buildings, housing and jobs of the future.

“We are living in uncertain times, but this Government has made clear today that Portsmouth’s leading role in making Britain stronger and safer is secure.”

Speaking to Sky News ahead of the upcoming announcement, defence secretary John Healey said the funding is necessary from economic and security perspectives.

He said: “This is a further £2.2bn this year on top of the £2.9bn she announced in October.

“That is a total of more than £5bn as a first bold step to increasing defence spending to 2.5 per cent of GDP.

“She (Rachel Reeves) will say this afternoon that the world is changing. Our task is to secure Britain's future, and this investment means we can make Britain stronger and safer in an insecure world, but it also means we can see defence create the good jobs right across the country which our economy needs.”

Before news of funding upgrades to HMNB Portsmouth, defence procurement minister Maria Eagle visited the base to see its economic potential.

She also spoke with manufacturing firms. Further details can be found below:

The Spring Statement will not just outline an economic boost for defence, but also possible cuts and funding increases elsewhere.

Further details can be found here

Chancellor Rachel Reeves has began her Spring Statement

Chancellor Rachel Reeves said: “Our task is to secure Britain’s future in a world which is changing before our eyes. The threat facing our continent was transformed when Putin invaded Ukraine, and has since escalated further, and continues to evolve rapidly.”

She added: “This moment demands an active government. A government stepping up and on the side of working people, helping Britain to reach its potential.”

To start her budget, Rachel Reeves is focusing on the economy and has set out plans to clamp down on tax evasion. She cited figures from the Office of Budget Responsibility. The politician also spoke about Personal Independence Payments, with cuts and changes expected to save £4.8bn.

She said: “The Labour Party is the party of work. We believe If you can, you should work, but if you can’t work, you should be properly supported.”

Rachel Reeves said the proposed rise in defence spending has largely be made possible by a reduction in foreign aid spending.

The Chancellor told The House of Commons: “We will increase defence spending to 2.5 per cent of GDP, reducing overseas aid to 0.3 per cent of GDP. This means we will save £2.6bn in day to day spending in 2029/2030, to fund our more capital intensive defence commitments.”

The Chancellor backed the prime minister’s plan to increase defence spending. The 2.5 per cent of GDP figure is due to be set in April 2027.

She told the Commons: “This is the biggest sustained increase in defence spending since the end of the Cold War, with the ambition to spend 3 per cent of GDP on defence in the next parliament. That was the right decision in a more insecure world, putting an extra £6.4bn into defence spending by 2027. But we have to move quickly and that starts with investment.”

The Chancellor told The Commons she wants to make the UK into a “defence industrial superpower” in a bid to grow the economy.

She said: “I will provide an extra £2.2bn for the MInistry of Defence in the next financial year, a further down payment on our plans to deliver 2.5 per cent of GDP by 2027.

“This additional investment is not just about increasing our national security, but also our economic security too. As defence spending rises, I want the whole country to feel its benefits.”

She is currently detailing plans on how to support defence firms.

The Chancellor set out plans to further invest in new military technologies.

She added: “We will spend a minimum of 10 per cent of the MoD equipment budget on new novel technologies, including drones and other AI enabled technology to drive forward advanced manufacturing and to create a demand for high-skilled scientists and engineers.”

Ms Reeves did not provide further details on the upgrades to HMNB Portsmouth, but confirmed they will take place.

She said: “We will establish a protected budget of £400m within the Ministry of Defence for UK Defence Innovation, rising over time, with a clear mandate to bring innovative technology to the front line at speed.”

She added: “We will take forward our Plan for Barrow, a town at the heart of UK nuclear security, working with (Michelle Scrogham) and providing £200 million, supporting the creation of thousands of jobs.

“We will regenerate Portsmouth naval base, securing its future, as called for by my right honourable friend for Portsmouth South.”

“We will secure better homes for thousands of military families,” the chancellor said. “That is the difference this Labour government is making.”

Ms Reeves said many of these will be in the constituencies of Plymouth Moor View, Plymouth Sutton and Devonport, York Outer and Aldershot.

Ms Reeves told parliament a further £2bn in UK Export Finance will be provided to grow the defence industry.

She said: “We will provide £2bn of increased capacity for UK export finance to provide loans for overseas buyers of UK defence goods and services.

“I want to do more with our defence budget, so we can buy, make and sell things in Britain, giving further opportunities for our world-leading defence companies and those who work in them to grow and create jobs here in Britain, as military spending rightly increases across Europe.”