Defence Secretary, Chancellor and Lincoln MP speak about impact of increase in defence spending on Lincolnshire in visit to RAF Waddington

A leading Government figure described the decision to increase defence spending to 2.5% of GDP as a "vote of confidence" in Lincolnshire's economy.

During a visit to RAF Waddington, near Lincoln, on Friday to commemorate the launch of a Defence Innovation Hub, Secretary of State for Defence John Healey argued that the Prime Minister's decision to increase defence spending will bring a boost to the county.

He was joined by Chancellor Rachel Reeves and Lincoln MP Hamish Falconer and said the new hub would "help unblock a system" and help to unlock the potential of pioneering research.

The funding announcement, made possible by cutting the foreign aid budget, was made on Tuesday (February 25) and came as leaders across Europe considered overhauling defence policies amid concerns the US could strike a deal with Russia to end the Ukraine war, leaving the continent vulnerable.

"We have made this commitment to the biggest increase in defence spending since the end of the Cold War," Mr Healey told reporters.

"We will now make sure that it also has a big impact on growing jobs, businesses, British technology, as well as reinforcing our security, and that's the way we can make ourselves strong at home but also strong abroad."

When asked what the implications could be for people in Waddington and Lincolnshire as a whole, he responded: "Being here at Waddington underlines the point, the point that defence is not something separate. It is a part of our communities, it is a part of the economy right across the country.

"There are 3,500 people here at Waddington – people in uniform, civilians, contractors. This is a part of Lincolnshire life, and the commitment that we have made now as a government is a vote of confidence in their future.

"But our job in government is to make sure we get the best value for the taxpayer for this increased investment and that we get the best value for our troops as well.

"So, one of the announcements we made today is that we are going to introduce a Defence Innovation Hub, and that will help unblock a system that means, too often, research and good state-of-the-art technology stay in the labs. We want to see that innovation become production, and that production bring jobs to this country and better kit for our troops to make them stronger."

Following on from that, Hamish Falconer MP, who also acts as the Parliamentary Under-Secretary of State for the Middle East, Afghanistan, and Pakistan, added: "That has a huge economic impact for Lincoln, which obviously is the home to not only this incredibly advanced RAF base we're in at the moment, but Lincoln University, which is home to a whole bunch of innovative companies. And I've been talking to Home Office ministers just this week about the investment we will see in Scampton as well.

"There is a huge economic dividend for Lincoln and Lincolnshire, which has always played its part in the defence industry."

Chancellor Rachel Reeves continued: "The world has changed, and we can see that before our eyes, and that's why, this week, the Prime Minister uplifted what we spend on defence to 2.5% of GDP – that is fully costed and fully funded by reducing the international aid budget.

"With the threats that we see within Europe, it means we need to up what we spend on defence. That's what the PM did this week. It is the right decision in our country's national interest."

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