News
Labour’s defence spending boost: Welsh SMEs to benefit, but questions remain
THE UK Labour Government has announced a significant increase in defence spending, pledging to raise investment to 2.5% of GDP by April 2027, with a further commitment to reach 3% in the next Parliament. The move aims to support national security and drive economic growth, with Welsh small and medium-sized enterprises (SMEs) set to benefit from new spending targets. However, concerns remain over the effectiveness of the strategy in delivering long-term economic prosperity.

More opportunities for Welsh firms
Under Labour’s Defence Industrial Strategy, more money will be directed to SMEs, with the government setting new spending targets to ensure smaller firms gain better access to defence contracts. A new SME hub will also be launched to help businesses enter the supply chain more easily.
Currently, Welsh defence SMEs support an estimated 5,940 jobs. The government hopes to grow this number by increasing procurement from small businesses. Last year, £914 million was spent on defence contracts in Wales, but only 4% of direct Ministry of Defence (MOD) spending went to SMEs. Labour’s plan aims to reverse a decline in SME participation under previous governments.
Doubts over economic impact
Labour has positioned defence as an “engine for economic growth,” but some experts are not convinced. Critics argue that military spending often benefits large corporations more than small firms. Economic analysts suggest that investment in public services, infrastructure, and green energy could deliver greater returns for regional economies.
A report by the Institute for Fiscal Studies warns that increasing defence spending while adhering to Labour’s fiscal rules could divert funding from public services. With concerns growing over NHS waiting times and education funding, some question whether prioritising military investment is the best way to deliver economic stability.
Funding shift sparks criticism
The government has also faced backlash for reducing Overseas Development Assistance (ODA) from 0.5% to 0.3% of Gross National Income (GNI) to help finance the defence budget increase. Aid organisations argue that cutting foreign aid to boost military spending harms the UK’s global reputation and influence.
Challenges within the defence sector
Despite the optimism surrounding the new measures, structural issues in the UK defence industry could limit the impact on SMEs. The sector has struggled with budget overruns, delays, and supply chain inefficiencies, raising concerns about whether smaller firms will see meaningful benefits.
Some businesses have also paused hiring and investment plans due to uncertainty surrounding the Strategic Defence Review, which is ongoing. Industry leaders warn that without clear long-term procurement plans, SMEs may find it difficult to plan ahead.
Fiscal balancing act
Labour’s defence spending plans align with previous government targets, but how they will balance this increase with other spending commitments remains unclear. Chancellor Rachel Reeves has pledged to maintain fiscal discipline, but experts warn that significant defence increases could lead to cuts elsewhere.
The Office for Budget Responsibility has said that meeting both defence spending targets and public service commitments will be challenging without new revenue sources. This raises concerns about potential tax hikes or cuts in other departments.
Reaction from politicians and business leaders
Prime Minister Keir Starmer defended the policy, saying:
“Wales’s defence industry supports thousands of good jobs and represents British manufacturing at its best. Increasing our investment in defence is not only bolstering our national security but also putting more money into working people’s pockets and boosting economic growth as part of our Plan for Change.”
However, critics have raised doubts about whether the strategy will work. Former Conservative Defence Secretary Ben Wallace warned:
“Throwing money at the defence sector without fixing procurement inefficiencies will not deliver the promised benefits. SMEs need long-term stability, not short-term spending targets that may shift after the next election.”
A long road ahead
Labour’s defence spending plans present both opportunities and challenges for Welsh SMEs. While new funding targets and the SME hub could open doors, concerns remain over economic priorities, industry inefficiencies, and fiscal sustainability.
With the Strategic Defence Review ongoing, businesses will be watching closely to see whether the promised benefits materialise—or whether this initiative will fall short of expectations.
Health
Resident doctors in Wales vote to accept new contract
RESIDENT doctors across Wales have voted to accept a new contract, with 83% of those who took part in a referendum backing the agreement, according to BMA Cymru Wales.
The contract includes a four per cent additional investment in the resident doctor workforce and introduces a range of reforms aimed at improving training conditions, wellbeing and long-term workforce sustainability within NHS Wales. The BMA says the deal also supports progress towards pay restoration, which remains a central issue for doctors.
Key changes include new safeguards to limit the most fatiguing working patterns, measures intended to address medical unemployment and career progression concerns, and reforms to study budgets and study leave to improve access to training opportunities.
Negotiations between the BMA’s Welsh Resident Doctors Committee, NHS Wales Employers and the Welsh Government concluded earlier this year. Following a consultation period, a referendum of resident doctors and final-year medical students in Wales was held, resulting in a clear majority in favour of the proposals.
Welsh Resident Doctors Committee chair Dr Oba Babs Osibodu said the agreement marked a significant step forward for doctors working in Wales.
He said: “We’re proud to have negotiated this contract, which offers our colleagues and the future generation of doctors safer terms of service, fairer pay, and better prospects so that they can grow and develop their careers in Wales.
“This contract will help to retain the doctors already in training, and also attract more doctors to work in Wales, where they can offer their expertise and benefit patients.”
Dr Osibodu added that the BMA remains committed to achieving full pay restoration and acknowledged that challenges remain for some doctors.
“Whilst this contract sets the foundations for a brighter future for resident doctors in Wales, we recognise that there are still doctors who are struggling to develop their careers and secure permanent work,” he said. “We need to work with the Welsh Government and NHS employers to address training bottlenecks and underemployment.”
The Welsh Government has previously said it recognises the pressures facing resident doctors and the importance of improving recruitment and retention across NHS Wales, while also highlighting the need to balance pay agreements with wider NHS funding pressures and patient demand.
The new contract is expected to be phased in from August 2026. It will initially apply to doctors in foundation programmes, those in specialty training with unbanded rotas, and new starters, before being rolled out to all resident doctors across Wales.
Crime
Swansea man jailed for online child sex offence dies in prison
A SWANSEA man who was jailed earlier this year for attempting to engage in sexual communication with a child has died while in custody.
Gareth Davies, aged 59, of the Maritime Quarter, was serving an 18-month prison sentence after being convicted in May of sending sexually explicit messages to what he believed was a 14-year-old girl. The account was in fact a decoy used as part of an online safeguarding operation.
The court heard that Davies began communicating with the decoy between November and December 2024 and persistently pursued the individual, later attempting to arrange a face-to-face meeting. He was arrested after being confronted by the decoy operators.
Davies had pleaded not guilty but was convicted following a trial. At the time of sentencing, police described the messages as extremely concerning and said his imprisonment was necessary to protect children.
It has now been confirmed that Davies died at HMP Parc on Wednesday (Nov 27) while serving his sentence.
The Prisons and Probation Ombudsman has launched an independent investigation into the death, which is standard procedure in all cases where someone dies in custody. No cause of death has been released at this stage.
A coroner will determine the circumstances in due course.
Farming
Welsh Conservatives warn climate plans could mean fewer livestock on Welsh farms
THE WELSH CONSERVATIVES have challenged the Welsh Government over climate change policies they say could lead to reductions in livestock numbers across Wales, raising concerns about the future of Welsh farming.
The row follows the Welsh Government’s decision, alongside Plaid Cymru and the Welsh Liberal Democrats, to support the UK Climate Change Committee’s Fourth Carbon Budget, which sets out the pathway towards Net Zero greenhouse gas emissions by 2050.
The Carbon Budget, produced by the independent Climate Change Committee (CCC), states that meeting Net Zero targets will require a reduction in agricultural emissions, including changes to land use and, in some scenarios, a reduction in livestock numbers.
During questioning in the Senedd, the Welsh Conservatives pressed the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs on whether the Welsh Government supports reducing livestock numbers as part of its climate strategy.
Speaking after the exchange, Welsh Conservative Shadow Cabinet Secretary for Rural Affairs, Samuel Kurtz MS, said the Welsh Government could not distance itself from the implications of the policy it had backed.
Mr Kurtz said: “By voting in favour of these climate change regulations, Labour, Plaid Cymru and the Liberal Democrats have signed up to the UK Climate Change Committee’s call to cut livestock numbers in Wales, and they cannot dodge that reality.
“The Deputy First Minister’s smoke-and-mirrors answers only confirm what farmers already fear: that Labour, along with their budget bedfellows in Plaid and the Lib Dems, are prepared to sacrifice Welsh agriculture in pursuit of climate targets.”
He added that the issue came at a time of growing pressure on the farming sector, pointing to uncertainty over the proposed Sustainable Farming Scheme, the ongoing failure to eradicate bovine TB, nitrogen pollution regulations under the Nitrate Vulnerable Zones (NVZs), and proposed changes to inheritance tax rules affecting family farms.
The Welsh Government has repeatedly said it does not have a target to forcibly reduce livestock numbers and has argued that future emissions reductions will come through a combination of improved farming practices, environmental land management, and changes in land use agreed with farmers.
Ministers have also said the Sustainable Farming Scheme, which is due to replace the Basic Payment Scheme, is intended to reward farmers for food production alongside environmental outcomes, rather than remove land from agriculture.
The UK Climate Change Committee, which advises governments across the UK, has stressed that its pathways are based on modelling rather than fixed quotas, and that devolved governments have flexibility in how targets are met.
However, farming unions and rural groups in Wales have warned that policies focused on emissions reduction risk undermining the viability of livestock farming, particularly in upland and marginal areas where alternatives to grazing are limited.
The debate highlights the growing tension between climate targets and food production in Wales, with livestock farming remaining a central part of the rural economy and Welsh cultural identity.
As discussions continue over the final shape of the Sustainable Farming Scheme and Wales’ long-term climate plans, pressure is mounting on the Welsh Government to reassure farmers that climate policy will not come at the expense of the sector’s survival.
-
Crime1 day agoMilford Haven man jailed after drunken attack on partner and police officers
-
News4 days agoDyfed-Powys Police launch major investigation after triple fatal crash
-
Crime1 day agoTeenager charged following rape allegation at Saundersfoot nightclub
-
Crime2 days agoMan charged with months of coercive control and assaults
-
Crime3 days agoMan sent to Crown Court over historic indecent assault allegations
-
Crime5 days agoMan spared jail after baseball bat incident in Milford Haven
-
Crime3 days agoMilford Haven man admits multiple offences after A477 incident
-
Crime2 days agoWoman ‘terrified in own home’ after ex breaches court order









