South Yorkshire's economy is set to receive a 'boost' as a pioneering defence programme has been launched – backed as part of a £250 million UK-wide investment – to improve collaboration, foster innovation and create jobs in the region.

The South Yorkshire Defence Growth Deal was announced by Defence Secretary, John Healey, MP. The programme will build on being a key region for the research, development and engineering of high-grade components and materials critical to the next generation of maritime, land and air capabilities. 

The Defence Secretary said: "Defence Growth Deals are a game-changer for South Yorkshire. By investing in local talent and infrastructure, we’re not only strengthening our defence capabilities, but also driving economic growth through the Plan for Change and creating opportunities for the region.   

"South Yorkshire plays a fundamental role in securing the UK’s defence and security and we know the region holds incredible talent in industry, academia and research institutions. With this landmark initiative we will light a fire under South Yorkshire’s innovation growth potential to help keep us all safe for decades to come."  

Utilising a share of a £250 million of money for UK Defence Growth Deals, South Yorkshire’s Growth Deal will forge a long-term partnership between the national and local government, uniting business and research institutions in the region to harness local expertise and resources in support of the UK Armed Forces.

Close working will take place with the South Yorkshire Mayoral Strategic Authority, local industry, research hubs and government departments to bolster the defence collaboration around the University of Sheffield’s Advanced Manufacturing Research Centre and ensure the necessary skills, housing and infrastructure provision required to sustain long-term regional growth.

Oliver Coppard, South Yorkshire's Mayor said: "The Defence Growth Deal is a huge vote of confidence in the work we do here in South Yorkshire and our contribution to the security of this country. 

"With this Deal, we can get on with what we do best: making things, creating secure, well-paid jobs, developing the skills of the future, and boosting growth to make people in South Yorkshire better off."

Latest statistics show that more than 3,000 people in Yorkshire and The Humber are already employed due to MOD industry spending, and this work will ensure every ounce of the sector’s potential is realised, driving economic growth and delivering on the Government’s Plan for Change.

Defence Growth Deals mark a transformative shift in defence strategy, emphasising the innovation, job creation, and regional economic development needed to ensure a resilient future-fit defence supply chain, delivering on the Strategic Defence Reviews drive for innovation at wartime pace.

The Defence Industrial Strategy is a long-term investment in both security and high-growth economy – by strengthening the industrial base and preparing for future challenges, it will unlock defence’s potential as an engine for growth under the Government’s Plan for Change. Further details on the specific funding allocation and interventions under the Deal will be announced in due course.