PwC comments on the publication of the UK Government's Strategic Defence Review

Cara Haffey, Leader of Industry for Industrials and Services at PwC UK said:

“The Government’s response to the Strategic Defence Review recognises the importance of a strong industrial base to the UK’s military readiness, with six new munitions factories to ensure our domestic manufacturing sector can respond in times of conflict.

“The response underlines the role of the defence industry, with its far-reaching supply chains, as a driver for economic growth in the wider manufacturing sector. In light of this morning’s PMI, which acknowledged concerns around trade conditions, weakened economic outlooks and rising cost burdens, the commitment to support UK industry will give the sector reason for cautious optimism.

“With defence hubs spread across the UK, the Government will also hope that increases in spending, and the creation of high-skilled jobs, deliver much-needed regional economic growth, to support the forthcoming Industrial Strategy. Skills development in the defence sector is good news for manufacturers more broadly, with 30% of respondents to the Make UK Executive Survey citing access to domestic labour and skills as a key business risk in the year ahead.”