Plymouth City Council has hailed Babcock International Group’s Defence Dividend Blueprint as a game-changing investment that will supercharge the city’s economy, skills base, and regeneration ambitions.
The 2025 Strategic Defence Review defined a new Defence Dividend as an engine for growth and a partnership with industry that will create jobs, wealth and opportunity in every corner of the UK. Detailed in Babcock's Delivering the Defence Dividend Report, they announce that they are:
- Investing in regeneration and prosperity through local partner initiatives, with £550 million invested in 3,800 UK Small to Medium sized Enterprises and a key supporter of regional investment zones
- Securing critical skills across defence and nuclear through our largest annual early careers intake of c.900 this year, developing vital nuclear skills through regional hubs, engaging 82,000 pupils through STEM activity (1 in 130 UK pupils) and plans to recruit 1,000 new Production Support Operatives – an award-winning employment initiative
- Delivering for people and communities through 105 full time equivalent Babcock volunteers, £1m + charitable donations, the UK’s joint largest defence employer of veterans and the largest defence employer of military reservists (500 +) and the introduction of a free employee share scheme
Councillor Tudor Evans, Leader of Plymouth City Council, said:
“This is a really significant moment for Plymouth and I’m absolutely thrilled. Babcock’s plans to bring over 2,000 people into the heart of our city centre will have a huge ripple effect—not just in terms of jobs, but in how people live, eat, shop, and enjoy the city. It means more people living locally, supporting our cafés, restaurants, shops, and cultural venues, and helping to create a vibrant city centre economy. Alongside the new Capability Centre, the dedicated Centre for Engineering and Nuclear Skills, and the facilities within the Freeport, this is a real show of confidence in Plymouth’s future.”
The Blueprint outlines a proposed Capability Centre for over 2,000 Babcock personnel relocated to a new site in Plymouth’s city centre. This move is designed to bring high-value employment into the heart of the city, supporting local businesses and services, and contributing to the vibrancy and long-term prosperity of the area.
Councillor Evans added: “This fits perfectly with our ambitions to transform Plymouth’s city centre into a thriving economic and cultural hub. We’re not just talking about retail anymore—we’re creating a modern, mixed-use city centre where people can live, work, learn and enjoy. Babcock’s investment will be a powerful driver of that transformation.”
In addition, Babcock’s blueprint includes the creation of a dedicated Centre for Engineering and Nuclear Skills. This new facility will significantly boost the city’s STEM capacity, helping to meet growing demand for skilled engineers and technicians in both the defence and civil nuclear sectors.
Within the Plymouth and South Devon Freeport, Babcock also plans to establish an Integrated Logistics Hub and an Advanced Manufacturing Facility. These developments will:
- Create new, high-skilled jobs
- Support supply chain resilience and innovation
- Maximise the benefits of Freeport status for the local economy
- Free up critical space at the Devonport dockyard for operational excellence
“The Freeport is already proving to be a game-changer for Plymouth. Babcock’s commitment to expanding within the Freeport zone shows how we’re attracting major investment and unlocking new opportunities for growth.
“This is the defence dividend in action,” Councillor Evans concluded. “It’s about securing our national and economic future—right here in Plymouth. We’re proud to be working with Babcock to deliver a brighter, more prosperous future for our city.”
David Lockwood, CEO Babcock said:
“The Defence Dividend is far reaching, strengthening the UK’s defence industrial base and fostering prosperity, collaboration and innovation in the communities we work in. Our ambitious blueprint for Plymouth is a model for regional regeneration and one we are committed to delivering.
“As a strategic partner to Government, for every pound spent on defence, our community of passionate people are delivering back, and we value the things that matter to our customers, colleagues and communities.”