Foreign firms that win UK defence contracts worth over £50m must invest an equal sum in British jobs and factories

Wes Streeting, pictured in July, as the government cited Poland, Norway and the Netherlands as models for its new defence-contracting rules.

Defence Secretary Wes Streeting and Chancellor John Healey unveiled the 'offset strategy' at BAE Systems' Scotstoun shipbuilding site in Glasgow on Friday, targeting foreign firms that win contracts worth £50 million or more. The rules, taking effect from April 2027, will require contractors to reinvest benefits — jobs, apprenticeships, factory openings and technology transfers — up to the full contract value on UK soil. Streeting said the pressure to hit 3% of GDP on defence by 2030 "does come at a cost to the country" and the policy is designed to maximise 'bang for the British buck'.

A £100m overseas contract could trigger up to £100m in new UK jobs, facilities or skills training.

Healey said the changes will ensure '100% of the value' of any overseas contract 'creates new opportunities for workers and businesses here at home'.

Labour defence chairman Tan Dhesi warned the government's timetable for defence funding was too slow, saying adversaries are 'not bound by fiscal years and spending cycles'.

BBC News - ScotlandForeign defence contractors will need to invest in UK under new rules LBCDefence contracts to prioritise British jobs and skills: Defence Secretary Wes Streeting joins Nick Ferrari Evening StandardNew policy to apply to large overseas defence contracts in bid to secure UK jobs The HeraldNew rules on major defence contracts to prioritise UK jobs and skills GOV.UKDefence contracts to prioritise British jobs and skills - GOV.UK www.the-independent.comNew policy to apply to large overseas defence contracts in bid to secure UK jobs - www.the-independent.com

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