Increased defence spending will boost UK economic growth, Streeting says

Wes Streeting has said higher defence spending could give a substantial lift to the UK economy, describing it as a major contribution to growth while signalling that the military will be treated as a spending priority under Andy Burnham’s government.

Speaking at the Farnborough airshow, the new defence secretary did not announce any new funding commitments. Instead, he focused on giving the arms industry what he described as “clarity and confidence”, framing that certainty as part of a broader push to support both military readiness and economic activity.

The comments suggest a shift in tone from recent political rows over defence funding. Streeting’s remarks were presented as an effort to reassure industry after a period of uncertainty that, according to the report, played a part in the collapse of Keir Starmer’s government.

Burnham’s administration is now being positioned as one in which defence spending will receive priority over other departmental budgets. That emphasis is likely to be watched closely by the industry, which has long argued that predictable government backing is essential for investment, production planning and employment.

No additional financial details were set out in the speech, and the defence secretary did not specify how any increased spending would be divided between personnel, equipment or industrial support. Even so, his comments indicate that the new government sees defence not only as a security issue but also as a potential economic driver.

The report is based on a monitored public feed from The Guardian Business, which said Streeting linked defence investment to wider growth prospects while stopping short of making new fiscal promises. Source: The Guardian Business - https://www.theguardian.com/politics/2026/jul/22/increased-defence-spending-uk-economic-growth-wes-streeting-military-andy-burnham