UK defence spending with British industry and commerce reached a record £34.1 billion in 2025/26, according to new Ministry of Defence figures.
The total represents a 3.2% increase in real terms and is the highest level recorded since the current statistical series began in 2013/14.
Northern Ireland records 63% increase
Northern Ireland recorded the largest percentage increase in defence spending, rising by 63% and worth an additional £190 million.
Spending in the East of England increased by 24.7%, equivalent to almost £400 million, while the East Midlands recorded a 21% rise worth almost £350 million.
£1.3bn spent directly with SMEs
Direct Ministry of Defence spending with small and medium-sized businesses increased by £100 million to £1.3 billion during the year.
Spending in the electronics sector also increased by 33%.
Defence spending estimated to support 274,000 jobs
The Ministry of Defence's latest estimate is that its spending with UK industry supported 274,000 jobs in 2024/25, 26,000 more than the previous year's estimate.
The jobs figure relates to 2024/25 rather than the latest 2025/26 expenditure total and should therefore be treated separately from the new £34.1 billion spending figure.
Government links defence budget to UK industry
The Government is presenting the figures as evidence that increased defence expenditure can support British manufacturing, businesses and employment as well as military capability.
Defence Secretary Wes Streeting said the Government wanted defence spending to deliver benefits for communities and businesses across the country.
That assessment represents the Government's interpretation of its defence and industrial policies. The underlying Ministry of Defence statistics show expenditure with UK industry reached £34.1 billion in 2025/26, an increase of 3.2% in real terms and the highest level since the statistical series began.