Government plans to crank up spending on defence could bring an unexpected jobs bonanza for the South Hams.

The Prime Minister has committed to spend 2.5 per cent of the UK’s gross domestic product (GDP) on defence by 2027. This is three years earlier than the commitment made under the previous Conservative government.

As a member of NATO, the UK is committed to spending 2 per cent of GDP on defence expenditure that meets NATO’s definition. The latest NATO estimates show that the UK spent 2.3 per cent of GDP on defence in 2024.

When defence spending targets are discussed as a percentage of GDP, this usually relates to spending that meets the NATO definition of defence expenditure, rather than total departmental expenditure by the Ministry of Defence (MOD).

Defence companies such as Babcock are major players in the Devon economy, and key factors in the Plymouth Freeport project. Tax breaks and other incentives allow freeports to attract new businesses, investment and economic growth.

Babcock operates Devonport Dockyard among its other work.

Cllr John Birch (Lib Dem, Totnes) told members of the South Hams Council executive committee that the increase in defence spending would mean a ‘huge boost’ for jobs, not only at Babcock but also among its local suppliers.

He said: “There is every possibility that companies in this area who may not regard themselves as defence companies at the moment will have the opportunity to benefit from the increase in the defence budget.

“It will not only create jobs but it will also create economic growth across the district. We are in a strong position to reap the possible rewards coming from the defence review.”

Cllr Birch was asked if the council was still confident that the freeport project would provide the 3,500 new jobs which had been quoted previously. “The numbers that were previously quoted may well be exceeded,” he said.