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Construction industry to benefit from more than £3bn ringfenced for defence infrastructure contracts

Danielle Kenneally
journalist

The UK Government has confirmed it will provide £1.5 billion of funds for the creation of new homes, as well as maintenance of existing homes for the armed forces, plus a further £1.5 billion to build munitions and energetics factories, creating new jobs across the country.

Credit: Ministry of Defence

In the Strategic Defence Review (SDR), due to be published in the next few days, the UK’s defence and deterrence strategy will detail how the country will bolster its security levels, while improving the lives of its military personnel.

Details on service family accommodation, guided by the forthcoming Defence Housing Strategy, will feature within it, with urgent repairs and maintenance, alongside the development of new forces housing confirmed.

Thousands of long-range weapons and government investment in at least six munitions and energetics factories will also back around 1,800 skilled jobs across the UK.

The additional funding for accommodation means more than £7 billion will be spent across this parliament on service family accommodation and new build single-living accommodation and follows the government’s landmark deal to bring back 36,000 military homes into public ownership.

While, the additional funding for new munitions factories and long-range weapons, will see UK munitions spend hit £6 billion this parliament.

Regarding the weapons and munitions factories spend, defence secretary, John Healey said: “We are strengthening the UK’s industrial base to better deter our adversaries and make the UK secure at home and strong abroad.

We will embrace the Strategic Defence Review; making defence an engine for economic growth and boosting skilled jobs in every nation and region as part of our government’s Plan for Change.”

Tom Forsyth, general Manager at SIKA UK, a construction chemicals company, said the announcement was welcomed.

In this pivotal moment, we pledge our unwavering support in building resilient infrastructure and delivering sustainable, cutting-edge solutions that underpin security and stability,” said Forsyth.

Working hand-in-hand with our partners and stakeholders, we shall contribute to forging a future defined by strength, resilience, and opportunity.”

Recent contracts to be awarded include a Single Living Accommodation (SLA) project at RAF Digby in Lincolnshire, won by Galliford Try Building and valued at £63 million. Plus, new-build working, living and training facilities at the Imjin Barracks near Gloucester, alongside two other projects, won by Lendlease and valued at an estimated £450 million.

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