Creation of UK jobs to be prerequisite for overseas defence contractors, welcomed by Prospect

Government plans to require foreign firms to invest benefits back into the UK if they successfully bid for defence contracts, have been welcomed by Prospect.

The new ‘Offsets’ policy will see overseas defence contractors needing to provide UK benefits in the form of jobs, skills, apprenticeships, technology and innovation.

Contractors will be required to deliver such benefits to the UK that could reach the same value as the contract. For example a £100m contract could see new jobs, facilities, or skills training up to the same £100m value in the UK, says the government.

Prospect General Secretary, Mike Clancy said, “Plans for the creation of UK jobs and skills to be a prerequisite for foreign defence contracts are welcome. The best way to ensure public support for increased defence spending is to visibly create good quality jobs and drive economic benefit in communities across the UK.

“We need to see tangible new investments as a result of this approach, and it must generate good quality unionised jobs. The forthcoming Defence Jobs Plan must double down on this approach, with a focus on ensuring that new defence jobs are good quality and accessible to all.”

The government adds that it will continue to prioritise buying UK defence contracts wherever possible.