Promises made to break 'toothless system' and create UK jobs through roles boosting Royal Navy and defence

Military spending needs to boost both the country’s defence and its industries, John Healey has said, as he announced plans to ensure British companies get more defence contracts.

The defence secretary outlined plans to ensure more defence spending stays within the UK in an address to the GMB union’s annual congress, which comes amid ongoing wrangling over the long-awaited Defence Investment Plan. Delayed since the autumn of last year, the programme promises to outline the funding parameters for reforms in the Strategic Defence Review.

In his speech to the union conference, Mr Healey revealed national security exemptions will be used to ensure British companies are awarded more defence contracts over their American and European competitors.

“My argument is this, my approach is this: every pound that we spend on defence needs to work twice, first for national security, second for British industry, and British jobs,” he told trade union members at the gathering in Blackpool.

The government will take new steps to back Britain’s domestic industries, he said, adding: “These are measures to change a toothless system, so that we develop stronger incentives, stronger requirements, stronger penalties for suppliers to meet their backing Britain commitments. I want British benefits from every defence contract the Ministry of Defence signs, delivering more British unionised jobs, apprenticeships, and innovation for every pound on defence spent.”

Mr Healey continued: “As part of this drive I can announce I will also look to make greater use of a national security exemption system, under the new Procurement Act, for defence contracts. This will allow the government to require certain capabilities to be built in Britain. This will support our industrial base. This will support GMB jobs.”

He added: “We will ensure that large defence contracts… in those contracts there will be provisions to require any significant sub-contracts to be placed with UK-based companies, or guarantee that UK competitors aren’t shut out.”

Defence contracts which go overseas will require jobs to be created in the UK, the defence secretary said, who also insisted that his approach is “unashamedly pro-Britain”. Reflecting the words of former Labour foreign secretary Ernest Bevin, Mr Healey told the GMB Congress: “Eighty years ago with the debate over a British nuclear deterrent raging, Ernest Bevin slammed his fist on the Cabinet table, and he said he wanted a ‘bloody Union Jack’ on top of it.

“Well congress, I want a bloody Union Jack on top of every warship, on top of every drone, on top of every missile submarines made in Barrow, armoured vehicles made in Telford, warships made in Glasgow, drones made in Swindon, and that means going further than any British Government ever has before.”

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The speech comes amid reports of growing disputes over the Defence Investment Plan. The prime minister and chancellor are reportedly arguing for a £15bn package, far short of the £28bn over the next four years which defence officials have called for.

Last week, Sir Keir Starmer insisted the plan would be “another step up” in the amount of money spent on arming the country. At the time, he said defence was the UK’s “top priority” when asked whether other Government departments will need to make cuts to pay for the boost.

According to the Times, No 10 has reportedly bypassed the Treasury to tell departments directly to find one per cent cuts to their capital budget over the next four years, which are used to fund infrastructure and investment, in order to meet the defence commitment.