Babcock Delivering Defence Dividend Blueprint for Regional Regeneration

Babcock International has announced transformative plans to relocate more than 2,000 members of its workforce from the Devonport Royal Dockyard facility to the heart of Plymouth City Centre. This move forms part of a trailblazing approach to support regional regeneration across the UK.

The announcement coincides with the publication of Babcock’s Delivering the Defence Dividend report, which outlines the organisation’s growing influence across society and highlights its impact beyond the balance sheet.

To further unlock potential and transform thousands of lives and businesses, Babcock is planning to relocate employees from a number of Devonport-based support functions into a new centrally located capability centre in Plymouth. This strategic move is designed to boost collaboration, foster wider prosperity, and enhance defence delivery outcomes.

The 2025 Strategic Defence Review introduced the concept of a new Defence Dividend—positioning defence as an engine for growth and a vital partnership with industry to generate jobs, wealth, and opportunity across the UK. In line with this vision, Babcock’s report details a series of initiatives demonstrating the company's social and economic contribution:

• Investing in regeneration and prosperity with £550 million invested in 3,800 UK Small to Medium-sized Enterprises and support for regional investment zones

• Securing critical defence and nuclear skills, including its largest annual early careers intake of approximately 900 individuals, the development of regional hubs for vital nuclear skills, engagement with 82,000 pupils through STEM activity (equating to 1 in every 130 UK pupils), and plans to recruit 1,000 new Production Support Operatives through 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

The announcement follows the release of an independent economic report revealing that Babcock contributed £4.3 billion to UK GDP in FY2024 - supporting one in every 550 UK jobs, while the social value report complements the economic figures, capturing the powerful impact, often in areas of deprivation, that increased defence investment is having.

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.”