The Confederation of Shipbuilding and Engineering Unions (CSEU) has called on the UK government to urgently bring forward its planned increase in defence spending to provide immediate stability and growth for the nation’s manufacturing sector.
In a statement released at the end of March, the CSEU – which represents members from GMB, Community, Prospect, and Unite – endorsed a strategic report titled ‘Defending the Nation, Growing the Economy.’ The report, published by the Alex Ferry Foundation, argues that the current fiscal rules should be adjusted if necessary to front-load investment into the defence budget, ensuring that the domestic industrial base remains resilient in a period of heightened global instability.
For businesses operating within the UK defence supply chain, the core proposal of the report is the establishment of a dedicated Defence Commission. This body would be comprised of defence contractors, trade unions, and industry experts, tasked with ensuring that government procurement directly supports the growth of the domestic engineering and shipbuilding sectors. For prime contractors and sub-contractors, such a commission would offer a structured platform to align government spending with industrial capacity, potentially leading to more predictable procurement cycles and the prioritisation of sovereign manufacturing capabilities.
Matt Roberts, GMB National Officer and CSEU President, emphasised that the proposed Commission would act as a vital link between trade unions, skills policy, and government procurement. By integrating these elements, the government could better meet its dual objectives of strengthening national security and stimulating economic growth through high-quality employment. The unions argue that a clear-sighted approach to procurement is essential for maintaining the technical expertise required for complex naval and aerospace projects, which are often at risk during periods of fiscal uncertainty.
The urgency of the CSEU’s demand reflects a broader concern within the industry that delayed investment could lead to a loss of critical skills and manufacturing capacity. The report suggests that bringing forward the planned increase to the defence budget is necessary to provide the long-term security required for firms to invest in new facilities and workforce development. This approach is designed to mitigate the risks associated with traditional “boom-and-bust” procurement cycles, which historically have hampered the efficiency of the UK supply chain. As the government continues to assess its fiscal priorities, the endorsement of this report by major industrial unions signals a growing consensus that the pace of defence investment must accelerate to ensure the UK remains a global leader in defence manufacturing and innovation.
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