Dockyard adds £1.3bn to regional economy

DEVONPORT dockyard operator Babcock International Group Plc is pumping £1.3bn into the South West economy, new figures show.

- WILLIAM TELFORD

Independent research by global business advisory firm Oxford Economics reveals how the defence company drives growth across the economy through jobs, investment in the supply chain, and tax contributions.

The research shows that more than 12,000 staff are directly employed by Babcock in the South West, most of them in Plymouth. Babcock paid £540m in staff costs in the region, and spent £290m with suppliers contributing an estimated total contribution of £1.3bn to the South West's GDP in the same year.

Whilst Babcock supports economic activity across the UK, its impact is most concentrated in the South West, centred on Plymouth, and Scotland. The Oxford Economics report also shows the company, recently reinstated into the FTSE 100, made a total contribution of £4.3bn to UK GDP in 2024, a significant increase of £1bn since 2022. For every £1 spent with Babcock on UK defence, £3 goes back into the UK economy.