South Yorkshire secures GBP50m in defence investment funding

The UK Ministry of Defence (MoD) has announced that South Yorkshire, UK will receive GBP50 million in funding to boost skills and R&D in the local defence supply chain.  

The investment – announced on 13 April – follows several Defence Growth Deals from the government this year, with Plymouth receiving funding in early April. 

“This GBP50 million investment will mean South Yorkshire’s superb defence companies can develop innovative new technology, helping strengthen our armed forces and keep Britain safe in this new era of threat,” Minister for Defence Readiness and Industry, Luke Pollard said. 

Currently, the MoD spends approximately GBP1 billion annually with companies based in the wider Yorkshire and the Humber region. Overall, Yorkshire and the Humber received a 30% increase in investment spending in 2024-2025. 

The UK Government seeks to maximise its return on investment from the defence supply chain – both regionally and nationally – as part of its ambition to make defence an engine of growth. 

South Yorkshire has been the site of high-profile defence industrial efforts in recent years, including the MoD’s acquisition of the Sheffield Forgemasters heavy engineering firm in 2021. 

It is also home to BAE Systems’ advanced artillery factory, opened in June 2025 with GBP25 million investment by the company, intended to bring gun barrel manufacturing back to the UK.  

The MoD states that these facilities complement local SMEs that supply defence materiel, with this new funding set to develop this further; however, the announcement does not go into detail on how.