Hundreds of jobs to be created by £50m defence sector deal, officials say

Patrick FeeBBC News NI business correspondent
News imageReuters Defence Minister Luke Pollard, with short grey hair, wearing a white shirt, red tie and black suit. Reuters
Defence Minister Luke Pollard will be in Northern Ireland for the launch

Northern Ireland's defence sector is to receive a boost which will lead to hundreds of jobs locally, officials have said.

The Northern Ireland Defence Growth Deal, launched by the UK government, will see £50m invested in tech companies and start ups.

It is a collaboration between the Ministry of Defence, local companies and Queen's University Belfast and is also aimed at helping students develop skills in engineering and technology.

As part of the launch on Wednesday, Defence Minister Luke Pollard is visiting Belfast along with Northern Ireland Office Minister Matthew Patrick.

'Vote of confidence'

They met local industry representatives and academics.

Speaking at the event, Pollard said it was "a really good news day*.

"With our objective to open the defence industry and the MoD order book to more small businesses, Northern Ireland has this incredible opportunity now, because the talent, the expertise, the innovation, the ingenuity is present here," he added.

"So now with the defence growth deal, with the other policies we're pursuing to expand defence spending, there's an opportunity to sell more of Northern Ireland's expertise and kit into our own armed forces and to our allies as well."

The NIO's Patrick, said: "It is a vote of confidence, not just in the businesses of Northern Ireland - there's lots of talent here - but in the people.

"It's £50m investment into the economy of Northern Ireland, helping young people get good jobs, better jobs, helping small businesses expand that supply chain.

"Everyone that I speak to is thrilled with this deal, so I think we're working positively across the executive, across businesses, to make this a real success."

News imagePA Media A head shot of Emma Little-Pengelly, a woman with black hair wearing a pearl necklace and a black top, is standing in front of a brick wall.PA Media
Deputy First Minister Emma Little-Pengelly said peace and stability comes from a strong defence

Northern Ireland is the region of the UK with the second lowest defence procurement spending according to MoD figures.

In 2024, £271m was spent, only ahead of the north east of England.

That compared to almost £8bn in the south east of England and almost £7bn in the south west.

However defence procurement has been rising in Northern Ireland in recent years, up from less than £100m in 2020.

This is almost entirely due to purchases of NLAW missile systems for Ukraine.

These are made by the French firm Thales at its factory in east Belfast.

The NLAW, which is a shoulder-fired anti-tank weapon, has been widely used by the Ukrainian Army in the war with Russia.

Defence spending in Northern Ireland is already expected to increase when work starts on a Royal Navy contract at the Harland and Wolff shipyard.

'Game changer'

The Deputy First Minister Emma Little-Pengelly said the new deal would build on Northern Ireland's aerospace and defence heritage.

"This could be a real game changer," she told Good Morning Ulster.

"Northern Ireland has really strong track record in relation to aerospace and defence and security.

"Today is a positive day to highlight the excellence within those sectors.

"Peace and stability comes through strong defence, that's the reality. The citizens of Northern Ireland and the UK and beyond need that strong defence."

Sinn Féin, the largest party on the NI Executive, has been critical of increased defence spending.

Last month the economy minister, Archibald, issued new guidance to the economic development agency Invest NI in respect of arms manufacturing.

The body was instructed by her department to "eliminate any risk of public funds being used to support the manufacture of arms or their components that are used for genocide".

Reacting to the news of the £50m investment, Sinn Féin MP Chris Hazzard said: "This is yet another slap in the face to struggling families who will be incredulous and outraged at this decision."