David Reed

As part of the Budget, this Government announced an over £100 billion increase in departmental capital investment over the next five years compared to plans the government inherited.

The government has committed £640 million in Bus Service Improvement Plan funding to improve bus services; £650 million of funding for local transport beyond our city-regions to improve connectivity in towns, villages and rural areas; and support for the first round of electrolytic hydrogen production projects, including a first of its kind project in Devon. This government has confirmed the establishment of a County Combined Authority in Devon and Torbay, giving local leaders the power to make decisions that benefit their communities, boosting economic growth and driving reform. We are encouraging local leaders in Devon and Torbay to deepen and widen their existing devolution agreements and take strides towards mayoral devolution as a gold standard

Alongside this, the government set out plans for the 10-year infrastructure strategy. This will boost investment and growth in the South West and across the country, providing certainty and stability for the supply chain, and helping to unlock private investment. To give businesses the certainty and stability to invest, the Government is developing a modern industrial strategy and creating the National Wealth Fund to support its delivery and mobilise billions of pounds of investment in the UK’s growth industries. The Government owned British Business Bank is also investing over £1billion through their regional Investment Fund programmes, supporting growing businesses across Devon.

The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms, and further explanatory information at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief. Around 500 estates across the UK are expected to be affected each year from 2026-27.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

At Budget, Government protected record levels of investment with £20.4bn for R&D in 2025/26, on top of support provided through the tax system. The government is supporting commercialisation of our world-class university research by providing at least £40 million over 5 years for proof-of-concept funding and improvements to support for researchers spinning out the UK’s cutting-edge research into firms of the future.

We also announced that we are extending Made Smarter Innovation with up to £37m funding, and funding for the Made Smarter Adoption programme will double to £16 million in 2025-26, supporting more small manufacturing businesses to adopt advanced digital technologies and enabling the programme to be expanded to all nine English regions.

Furthermore, the SME Digital Adoption Taskforce will be extended and will produce an interim report early in 2025 with practical steps and recommendations to enhance SME adoption of digital technology using insights from local and international experiences. To further support small businesses, DBT will shortly be announcing details on a £4m pilots package to encourage tech adoption for SMEs.

The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms, and further explanatory information at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief. Around 500 estates across the UK are expected to be affected each year from 2026-27.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms, and further explanatory information at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief. Around 500 estates across the UK are expected to be affected each year from 2026-27.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

The Army is currently undergoing a combined programme of work to ensure that our manoeuvre forces will have the lethality, protection and mobility to fight and win against any adversary. Whilst the Army’s modernisation will continue over the next decade with a programme of investment worth billions of pounds, the future capability development priorities will be guided by the Strategic Defence Review.

As part of this modernisation, Brigade Combat Teams are set to receive ground capabilities, such as the combination of AJAX, BOXER and Challenger 3, and air capabilities, such as the wider Joint Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) capability and the Boeing AH-64E. In the longer term, the Army will experiment with multiplying crewed aviation mass and lethality whilst enhancing its survivability through Launched Effects.

The strength of the British Army comes not just from its platforms and capabilities, but from its people, and the new Government is working to address challenges in recruitment we inherited. We have made some announcements on this area and plan to make further announcements in due course.

NATO is the cornerstone of UK and Euro-Atlantic security. Our commitment to NATO is unshakeable. This Government is pursuing a ‘NATO First’ defence strategy. In response to growing threats, the Prime Minister has underlined the UK’s cast-iron commitment to spending 2.5% of GDP on defence. Our commitment to NATO includes our nuclear deterrent and world class carriers with 5th generation combat aircraft.

European security will be our foreign and defence priority. Britain must also restore trust with our closest neighbours. This includes new security and defence agreements with close allies and partners in Europe, such as Germany, our plan for an ambitious and broad-ranging UK-EU Security Pact and reinvigorating the Lancaster House Agreement with France. This work enhances cooperation between the UK and key allies that complements the wider NATO alliance.

This Government is committed to bringing forward a Defence Industrial Strategy which ensures the imperatives of national security and a high-growth economy are aligned. The strategy will deliver a better, more innovative and more resilient defence sector to support military readiness. It will enable the UK to innovate at speed and better support its Armed Forces, deter its adversaries and seize opportunities presented by the technologies of the future.

The British Army has two deployable divisions: 1 (UK) Division and 3 (UK) Division.

The F-35B Lightning is a 5th Generation, swing-role combat aircraft equipped with advanced sensors, mission systems and stealth technology. Whether operating from land or onboard the Queen Elizabeth Class aircraft carriers it is a central component of the UK's Combat Air for decades to come. The unrivalled sensor, avionics and weapon employment capabilities of the platform will also undergo continual modernisation to ensure we stay ahead of emerging and proliferating threats.

UK international influence is delivered through the cutting-edge expeditionary capability of the Lightning, able to rapidly deploy and integrate seamlessly with NATO, the Joint Expeditionary Force, and Allies and Partners across the globe.

Through Lockheed Martin and the Joint Program Office approximately 15% of every F-35 aircraft delivered globally is manufactured by UK companies. The UK is the design authority for a range of significant Lightning aircraft components, securing highly skilled jobs within the UK and providing significant economic benefit. For example, the rear fuselage, batteries, ejector seats and actuators are manufactured in the UK for the entire F-35 global fleet. This manufacturing and equipment support for the global fleet of F-35 includes over 100 UK-based Tier 1 suppliers and has created over 20,000 jobs in the UK.