WELSH defence and aerospace firms could be in line for a share of billions of pounds in new military spending after the UK Government published its long-delayed Defence Investment Plan.

The plan, announced on Tuesday, sets out how the Ministry of Defence will spend almost £300bn over the next four years, including an extra £15bn above the previous settlement.

Prime Minister Sir Keir Starmer said the investment would transform the Armed Forces, strengthen national security and support more than half a million defence-related jobs across the UK by the end of the decade.

But for Wales, the key question is whether the new money will translate into real contracts, skilled jobs and apprenticeships for Welsh companies, or whether the bulk of the spending will be concentrated elsewhere.

At the centre of the plan is a major shift towards drones, artificial intelligence, autonomous weapons and faster battlefield technology.

The Ministry of Defence says more than £5bn will be spent over the next four years on a “drone transformation” for the Armed Forces.

That includes £650m for inexpensive expendable autonomous systems, including drones and uncrewed ground vehicles, to increase the lethality of the Army, Commando Force and Special Forces.

The plan also includes nearly £2bn for a new Digital Targeting Web, designed to connect the Armed Forces more effectively and allow faster decisions on the battlefield.

A further £790m will be spent on protecting the UK and overseas bases from air, drone and missile threats, including new radars, sensors, directed energy weapons and expanded counter-drone systems.

The Government has also committed £11bn to munitions and weapons, including long-range strike weapons, low-cost cruise missiles and one-way effectors. Ministers say at least six new energetics factories will be built by 2030 to increase the UK’s capacity to produce munitions.

For Wales, those commitments are significant because the country already has a sizeable aerospace and defence sector, as well as a specific UK Government-backed plan to grow its role in autonomous systems.

Earlier this year, the UK Government announced a £50m Wales Defence Growth Deal, designed to make Wales a launchpad for next-generation autonomous technology.

That deal was presented as an opportunity to support high-skilled roles and strengthen Wales’ position in areas such as surveillance drones, autonomous systems, cyber security, advanced manufacturing and defence research.

The Defence Investment Plan now becomes the first major test of whether those ambitions are backed by procurement decisions.

Wales already has a substantial defence and aerospace footprint, with major employers including BAE Systems, General Dynamics UK, Airbus, Thales, GE Aerospace, Rolls-Royce and Safran.

The combined aerospace and defence sector in Wales directly employs around 16,000 people, with turnover of £3.7bn and a contribution of approximately £1.5bn in gross value added to the Welsh economy.

Wales is also home to a wider supply chain of engineering, electronics, software, cyber security and manufacturing firms that could potentially benefit from the move towards drones, AI and autonomous warfare.

But industry figures, unions and politicians are likely to ask how much of the promised spending will actually reach Wales.

Welsh Government has previously said Wales receives around 3% of total Ministry of Defence expenditure, with an ambition to increase that to 5% or more as overall defence spending rises.

The new plan will therefore be watched closely by ministers, unions, defence firms, universities and local authorities across Wales.

GMB Union said the Defence Investment Plan provided some stability after months of uncertainty, but warned that workers would judge it by whether it delivered secure jobs and investment.

Matt Roberts, GMB National Officer, said: “Today’s Defence Investment Plan provides some stability for a sector besieged by insecurity.

“The challenge now is delivery. Workers will judge this plan on real jobs, real investment, and real outcomes.

“We must rebuild our own sovereign capability, and strong defence depends on a strong workforce.

“Procurement must prioritise social value and public money must come with the right strings attached, fair pay, decent conditions, and trade union recognition.

“GMB welcomes renewed focus on defence investment, but the real test is whether this delivers jobs, skills, and secure work here in the UK.”

The Government has also announced a new £50bn defence export facility through UK Export Finance, aimed at helping British defence companies win contracts overseas.

That could be important for Welsh firms looking to scale up and compete internationally, particularly if smaller businesses can access support rather than being locked out by larger prime contractors.

The Wales Regional Defence and Security Cluster, launched earlier this year, was designed to bring together small businesses, larger contractors, universities and colleges to strengthen Welsh supply chains and improve access to Ministry of Defence work.

Its role is likely to become more important if the UK’s defence economy shifts further towards dual-use technology, cyber security, artificial intelligence and autonomous systems.

BAE Systems’ Glascoed site in Monmouthshire is one of the best-known defence manufacturing sites in Wales, employing hundreds of people in munitions work.

General Dynamics UK also has operations in south Wales, including work linked to armoured vehicles, tactical communications and systems integration.

Airbus has a major presence in north-east Wales, while Thales, Safran, GE Aerospace and other firms are part of a broader high-value manufacturing and technology base.

The Government says the new plan will also support the Global Combat Air Programme, with more than £8bn over the next four years for the next-generation stealth fighter jet being developed with Japan and Italy.

More than £63bn will be spent over the next four years on the UK’s nuclear deterrent, including Dreadnought and SSN-AUKUS submarines, a new warhead and the purchase of 12 F-35A aircraft.

Those programmes are not Wales-specific, but ministers argue that the wider increase in defence spending should support jobs and supply chains across the UK.

There are also potential implications for west Wales.

Pembrokeshire is home to important military training infrastructure, including Castlemartin Range, while Manorbier has long been associated with air defence training.

Cawdor Barracks near Brawdy has also been the focus of separate Ministry of Defence plans for the proposed Deep Space Advanced Radar Capability project, known as DARC.

Any increase in spending on drones, surveillance, radar, electronic warfare or autonomous systems could raise questions about whether Welsh military sites will receive further investment or new roles.

There may also be interest in whether Welsh ports, marine engineering firms and coastal infrastructure could play any part in the development of uncrewed naval vessels and high-speed military craft.

The Defence Investment Plan includes a shift towards what ministers call a “hybrid Navy”, combining traditional ships with autonomous vessels, AI and uncrewed systems.

Plans include at least six new Common Combat Vessels to act as control hubs for uncrewed systems in the 2030s, alongside high-speed boats for Royal Marine Commandos.

For coastal areas such as Pembrokeshire, that raises a natural question: will maritime defence investment create opportunities for Welsh ports, marine services and engineering businesses?

The plan has been delayed for months amid arguments in Whitehall over money.

Former Defence Secretary John Healey resigned after warning that the funding package fell short of what was needed to protect the UK and meet existing commitments.

Armed Forces Minister Al Carns also quit, saying the plan was not transformative enough in the face of rapidly changing warfare.

New Defence Secretary Dan Jarvis has said the character of warfare is changing rapidly, with uncrewed systems now defining conflicts in Ukraine and the Middle East.

He said the UK had to embrace new technology to give British forces the edge.

Sir Keir said the world was becoming more dangerous and volatile, and that the UK had to rebuild ammunition stockpiles, invest in cutting-edge technology and strengthen the Armed Forces.

The Conservatives have criticised the plan as “too little, too late”, while the Liberal Democrats said the Government had dangerously short-changed the Armed Forces.

Critics have also questioned whether the plan goes far enough to meet NATO expectations and whether the funding will be sufficient to deliver all the ambitions set out in the Strategic Defence Review.

The Government says defence spending will rise from £54bn a year under the previous government to almost £80bn a year by 2029, taking UK defence spending to 2.7% of GDP.

Ministers say the country remains on track to meet NATO defence spending targets by 2035.

There will also be political questions over how the plan is funded, with the Prime Minister saying some capital projects in areas such as roads and energy will no longer go ahead as previously planned.

For Wales, that raises a further issue: whether any Welsh infrastructure schemes could be affected by the wider reprioritisation of public spending.

The Government insists the plan will not take resources away from day-to-day frontline services.

For Welsh industry, however, the immediate question is more practical.

Will the £5bn drone programme include Welsh firms?

Will the new munitions spending benefit existing Welsh sites?

Will smaller companies get a route into defence contracts?

Will universities and colleges in Wales be given funding to train the workforce needed for the new defence economy?

And will west Wales, with its existing military estate and strategic coastal position, see any direct benefit?

The move towards drones and autonomous systems is no longer theoretical. It is already changing warfare.

The question now is whether Wales will be a serious part of that new defence economy, or whether it will once again be left fighting for a small share of UK military investment.

Lloyds survey shows optimism improving in Wales despite UK-wide dip

BUSINESS confidence in Wales rose sharply in June, according to the latest Lloyds Business Barometer.

The monthly survey found confidence among Welsh firms increased by nine points to 32%, up from 23% in May.

Companies reported a stronger outlook for their own trading prospects, which rose 13 points to 48%, while optimism in the wider economy climbed five points to 16%.

Lloyds said strong customer demand was the main driver, with 89% of Welsh businesses citing it as a key factor behind their confidence.

Hiring intentions also improved, with a net balance of 20% of firms expecting to increase staff levels over the next year.

However, confidence in Wales remains below the 12-month average of 42%, and well below the peak of 76% recorded in July last year.

Looking ahead, Welsh businesses said their main priorities for growth over the next six months were adopting new technology such as AI or automation, entering new markets, and investing in staff training.

Nathan Morgan, Area Director for Wales at Lloyds, said: “It’s encouraging to see confidence among Welsh businesses rise this month, with firms feeling more positive about their own trading outlook and the wider economy.

“That optimism is being backed by clear plans for growth, with businesses looking to embrace new technology, enter new markets and invest in their teams.

“With hiring intentions also edging up, there are positive signs of momentum across Wales. We’ll continue to support Welsh businesses as they adapt and pursue new opportunities.”

Across the UK, overall business confidence fell three points to 44%. The East Midlands was the most confident region, at 56%, while the South West saw the biggest monthly increase, rising 22 points to 44%.

The Lloyds Business Barometer surveys 1,200 businesses each month, including 68 in Wales. The latest survey was carried out between June 1 and June 15.

A CALL to allow a Pembrokeshire farm to keep welfare facilities to care for rare breed breeding Tamworth pigs has been given the go-ahead.

In an application to Pembrokeshire County Council, Sharron Nicolas, through agent Hayston Developments & Planning Ltd, sought a certificate of lawfulness permission for the creation of a welfare flat within a previously-approved agricultural building, plus a rear lean-to extension and the erection of two further sheds at Fairybank Fields Farm, Bethesda, near Clynderwen.

An application for a certificate of lawfulness allows an applicant to keep a development if they can provide proof of occupancy or use, without any enforcement taking place, over a prolonged period.

The previous agricultural building application was granted back in 2003.

A supporting statement accompanying the application said the two-level welfare unit in the 2003-granted shed “contains the necessary elements to allow overnight stays which are essential when the pigs are farrowing.”

It added: “Mr Allan and Mrs Sharron Nicholas have been owners of Fairybank Fields since 1998. Unfortunately, Mr Nicolas died in February 2025. Although managing the farm at Bethesda, they lived at Pleasant View, Cold Blow, Narberth meaning a round trip of some 12 miles per visit – a visit which was required on a daily basis because of the need to feed and generally care for their animals – which were and still are rare breed pigs together with a number of beef cattle.

“It is essential that the pigs require continuous care when farrowing or when there are other pressures on animal health. When such occasions occurred, it was the practice of Mr Nicholas to spend the night at the farm and to use the welfare provision.”

It said Mr Nicholas would have spent approximately three months’ worth of nights (circa 90 nights) staying over at Fairybank Fields – a period of some 12 years when the bedroom above had been created to late 2024 when his brother assisted Mrs Nicholas in caring for the pigs as Mr Nicholas was too ill.

It went on to say: “Whilst the principal activity at the Farm is the breeding of the rare breed, the Tamworth Pig of which there are only currently 290 breeding sows in the UK, Mr and Mrs Nicholas also have had beef cattle on their farm and Mrs Nicholas intends to re-start that element in 2026.”

An officer report recommending approval said a site visit had been undertaken finding no evidence of the unit being occupied as a separate residential dwelling, nor as a primary residence.

It said a range of evidence was submitted in support of the application, including a detailed timeline, aerial imagery and multiple witness statements “which consistently indicate that the rear extension to Building 1 was constructed circa 2008, Shed 2 was completed in September 2012 and Shed 3 was erected in 2015”.

It said historic aerial photographs and witness statements demonstrated “on the balance of probability, that the operational development was substantially completed well in excess of four years prior to the submission of the application and has not been subject to any material interruption,” considered to be lawful by virtue of immunity from enforcement action.

It was granted approval on that basis.