The contribution of the defence industry to UK regions and countries
The defence industry is estimated to contribute around £10 billion to £15 billion a year to the UK economy, mostly in South East and South West England.
This briefing paper gives figures on public spending in England, Scotland, Wales and Northern Ireland. It also gives figures for the English regions.
Public spending by country and region (570KB PDF)
In 2024/25, public spending per person in the UK as a whole was £13,504. In England, it was £13,134 (3% below the UK average). This compares with:

Source: HM Treasury, Country and regional analysis: 2025, 19 November 2025, table A.1b
Among the English regions, public spending per person was lowest in the South East at £12,031 (11% below the UK average) and highest in London at £15,217 (13% higher than the UK average).
Across the UK, more money is spent on social protection than on any other function, followed by health. The breakdown is reasonably consistent across all countries and regions.
Almost all of the data in this briefing comes from HM Treasury’s Country and regional analysis: 2025, which also contains a detailed functional breakdown and a database that can be used for further analysis.
Public spending by country and region (570KB PDF)
The defence industry is estimated to contribute around £10 billion to £15 billion a year to the UK economy, mostly in South East and South West England.
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