Funding for defence firms in Plymouth and the South West

A £50 million defence investment is set to accelerate industrial innovation across Plymouth and the wider South West, strengthening the region’s position as a hub for advanced maritime technology while supporting UK national security. The new Plymouth Defence Growth Deal is expected to generate hundreds of skilled jobs and significantly expand the region’s already substantial defence footprint.

The funding cements Plymouth’s role at the forefront of maritime autonomy, backing the development of the next generation of surface and subsurface drones. The deal will build on the National Centre for Marine Autonomy, streamlining industry access to waterfront innovation labs and ‘state of the art’ test facilities, enabling companies to move faster from concept to deployment. A new Plymouth Marine Autonomy Trials Authority will be created to provide dedicated support to start‑ups and established firms as they test and commercialise emerging maritime technologies.

Skills development is a central part of the package. Investment will reinforce Plymouth City College’s growing role as a technical training hub, adding capacity at regional colleges and universities to deliver around 60 new defence‑related courses in advanced manufacturing, engineering and technology. Combined with Babcock’s 2,000‑job capability centre, the initiatives are expected to help reshape Plymouth’s city centre into a dynamic place to live, work and develop high‑value engineering careers.

Defence Minister Lord Vernon Coaker said: “We pledged a Defence Growth Deal for Plymouth and I’m delighted to be here today to deliver on that promise. This £50 million investment will see Plymouth stay a world leader in maritime autonomy by making it easier for its defence businesses, creating hundreds of good jobs and boosting the defence industry across the South West.”

Vital for UK defence
He added: “Plymouth is already vital for the UK’s defence, with the largest naval base in Western Europe at HMNB Devonport providing the backbone of the UK’s submarine fleet. Defence investment in Plymouth isn’t just good for the city, it directly strengthens the UK’s ability to keep our seas safe and our country secure.”

According to the minister, the package supports the Strategic Defence Review’s pledge to enhance the UK’s autonomous maritime capabilities, while helping defence act as an engine for economic growth across the region. The commitment comes against a backdrop of the UK delivering the largest sustained rise in defence spending since the Cold War, set to reach 2.6% of GDP from 2027.

The South West remains one of the UK’s most capable defence manufacturing regions, home to major industry names including Thales, Babcock, Leonardo, Airbus and BAE Systems, alongside a strong cluster of fast‑growing firms such as Rowden Technologies and Oshen pushing advancements in underwater systems, submarine support and rotary‑wing engineering. In 2024/25, the MoD spent more than £6.6 billion in the region, supporting 37,300 industry jobs and channelling nearly £400 million to SMEs.

With £4 billion already committed to modernising Devonport and defence programmes running into the 2070s, Plymouth’s role as a cornerstone of the Royal Navy’s operations looks secure for decades to come.