Portsmouth Naval Base set for crucial investment as government announces hike in defence spending

Chancellor Rachel Reeves made the announcement at the spring statement today (Wednesday, March 26) that the UK must “move quickly in a changing world” to up its defence commitment. It comes as the Government aims to hike defence spending to 2.5 per cent of the UK’s economic output by 2027.

The April funding increase will help pay for new technologies, like long range laser and microwave weapons – collectively known as directed energy weapons – which will be fitted to warships. Homes for military families are also set to be refurbished, including the 36,000 which were recently brought back into public ownership from the private rented sector.

However a chunk of that cash will also be spent on upgrading HM Naval Base Portsmouth, with ministers hoping to create jobs in manufacturing and technology across the UK as they ramp up defence spending with the aim of reaching their goal of growing the economy.

Portsmouth is considered the home of the Royal Navy and the city’s naval base is not only where key ships, such as both of the navy’s aircraft carriers, are based but is also home to key civilian maritime businesses and services including BAE Systems.

It follows a recent visit by Maria Eagle MP, minister for defence procurement, to the naval base where she held talks with various manufacturing firms and discussed the site’s future capabilities alongside city MPs Stephen Morgan and Amanda Martin.

Ms Reeves will insist this plan, set out by the Prime Minister in February, was the “right decision in a more insecure world”, adding: “But we have to move quickly in a changing world. And that starts with investment.”

“This increase in investment is not just about increasing our national security but increasing our economic security, too. As defence spending rises, I want the whole country to feel the benefits,” the Chancellor told MPs.

Defence Secretary John Healey said national security was “the bedrock of a successful economy”.

“This significant increase in defence spending, on top of the £2.9 billion announced by the Chancellor at the Budget, means an extra £5 billion for our Armed Forces next financial year,” he said.

Mr Healey added: “This investment will make Britain stronger and safer in a more insecure world. And it will ensure defence is an engine for growth, creating good jobs across the nation.

“These are the bold first steps of the largest sustained increase in defence spending since the Cold War announced by the Prime Minister last month.

“Our Government is delivering for defence and investing in the outstanding men and women who keep Britain secure at home and strong abroad.”

The news has been welcomed by local MPs with Stephen Morgan, whose Portsmouth South Constituency includes the base, 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.”

Portsmouth North MP Amanda Martin added: “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.

“After 14 years of the tories decimating our armed forces, axing shipbuilding from the city and installing three token ‘Ministers for Portsmouth,’ this investment by the Labour government will fund upgrades to infrastructure at His Majesty’s Naval Base, securing its ability to support Royal Navy operations into the future.

“Stephen Morgan MP and I brought the Minister down to the naval base earlier this year to see the potential and hear from defense businesses about how they want to invest in the city. 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.”

Meanwhile Gosport MP Caroline Dinenage was hopeful that the announcement would make a real improvement for military personnel and their families, especially in relation to accommodation.

She said: “I welcome any investment that secures the future of His Majesty's Naval Base Portsmouth as the home of the Royal Navy.

“But this must be matched with investment in those who serve, and those our national security depends upon. This week I raised the appalling state of some Service Family Accommodation with the Secretary of State for Defence and asked when our forces families would see tangible improvements beyond the government rhetoric.”