Defence contracts to prioritise British jobs and skills

Press release published by Ministry of Defence, HM Treasury on Friday, 30 October 2026 at 00:01 UK time · 2026 Burnham Labour government.

What was announced

Overseas firms winning UK defence contracts to be required to invest benefits back into the UK under new Offsets policy.
Ministry of Defence, gov.uk

British workers, businesses and apprentices will benefit from major changes which will see more defence work carried out in the UK thanks to the launch of a world-leading Offsets policy.
Under the new rules, overseas companies that win significant UK defence contracts will be required to invest back into Britain, through new British jobs and apprenticeships, opening UK factories, investing in domestic suppliers, transferring technology and innovation know-how.
This means contracts worth over £50 million will be considered for offsets. The contractors will be required to deliver such benefits to the UK that could reach the same value as the contract, for example a £100m contract could see new jobs, facilities, or skills training up to the same £100m value in the UK.

Each line is quoted from the original. Figures are as the publisher stated them on the day.

“Comes after the government set a target of 3% GDP spend on defence in 2030, on the path to the NATO commitment of 3.5% in 2035.”
“This means contracts worth over £50 million will be considered for offsets.”
“The contractors will be required to deliver such benefits to the UK that could reach the same value as the contract, for example a £100m contract could see new jobs, facilities, or skills training up to the same £100m value in the UK.”
“Announced today by the Chancellor and Defence Secretary on a visit to BAE Systems Scotstoun, Glasgow, the policy applies to overseas defence contracts worth £50 million or more, delivered through the government’s Back British approach set out in the Budget.”
“When a big contract goes overseas, these changes will ensure 100% of the value creates new opportunities for workers and businesses here at home, strengthening our industrial base and supporting growth across Britain.”
“The defence economy in Scotland is worth £2.5 billion and directly supports 12,200 jobs, backed by the recent £10 billion Norway export deal for Type 26 Frigates supporting 2,000 local jobs and the £453 million Typhoon radar system supporting 300 roles in Edinburgh.”

Topics, as GOV.UK files them: Defence and armed forces, Trade and investment.

Original: https://www.gov.uk/government/news/defence-contracts-to-prioritise-british-jobs-and-skills
Published 2026-10-30 00:01:00 UTC
Read by this site 2026-10-30 00:15:16 UTC from GOV.UK
Saved copy: receipt 4678, with its SHA-256 fingerprint

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