Sheffield Star Northern Lights Column

There used to be a saying when I was a child that “it’s an ill wind that blows no good”. I was thinking of this when I learnt of the opening of the half-constructed building at Tinsley, which will house BAE Systems.

Following the announcement by the Secretary of State for Defence, local MP John Healey, of a £426 million investment in Forge Masters, securing 700 jobs and hundreds more in the further expansion plans, we now have the opening of this new site for the large British armaments company.

There is a £25 million investment in the construction alone, creating 94,000 ft² and the capacity to produce substantial weaponry.

The primary production here in South Yorkshire will likely be for old-fashioned (or not quite so old-fashioned) artillery. Artillery, until the invasion of Ukraine by Russia, that appeared to be on its way out. But the M777 is a very different weapon from those of the past. Light, transportable and with a range of 25 miles, this is a weapon that is now being deployed by Ukraine in protecting itself against the superior manpower, numbers and resources of the Russian Federation.

This is set against the backcloth of the decision – given the international insecurity and instability we’re facing – to raise defence spending substantially. Initially to 2.5% of GDP, and in 10 years’ time (counting cyber security and other resilience) to a staggering 5%.

This can only be achieved if there is either a “defence bond" or the establishment of a European-wide Rearmament Bank, which has already been floated as an idea. Access by the UK to such funding at low interest rates would enable us to raise capital without destroying investment in infrastructure and public services.

That, at least, is the hope. As, if we don't have an alternative form of funding, then the trade-off between international security and defence on the one hand, and maintaining support at home for the diversion of such funding, would be beyond tricky.

For those of us who, in our younger life, were deeply sceptical over the reassignment of key public spending to defence, this is a seminal moment. There is no doubt in my mind that, given what's going on in the world, we have little choice but to increase our defence spending as part of the commitment by NATO countries agreed in the Netherlands two weeks ago. How it is done will determine whether this is a political plus or a disaster.

That is why the private investment from BAE Systems in Tinsley and public investment into Forge Masters, along with the wider efforts to get defence spending extended, really matters.

If the investment in defence is to have some other beneficial outcome than our ability to see off threats from opponents, then the money has to go into the right place, with the right outcome.

In other words, right across the country, there needs to be a material gain for men and women gaining skilled jobs, spending in communities that desperately need an uplift and contributing to both growth and productivity.

This is possible. Much of the potential defence spending will be outside London and the south-east, where the economic activity levels are on a different scale to the rest of Britain. Were we – in South Yorkshire and elsewhere (those coping with the aftermath of the collapse of traditional industries) – to gain from this investment then we must make the defence spending a beneficial contributor to substantial improvements in prosperity, to the kind of growth which will allow for investment in key public services and therefore to offer a win-win to future voters.

There's nothing new about Sheffield's contribution to defence and the former war effort. Both in the First and Second World Wars, Sheffield played an essential part in producing the materials, weaponry and ammunition, so was vital to winning the conflict. My mother, who had been working at what was then Stanley Tools, was diverted onto the tricky job of spraying tracer bullets. Tricky, because if you got it wrong, they didn't fire, or they misfired. In those days, there was no computerisation and numerical control. It was literally down to technique and close observation.

There is another major challenge. Whilst investment of this sort can create jobs, it doesn't necessarily mean that the skills are available to take up those jobs. Whilst supplies to Barrow in Furness for the development of submarines is an obvious gain for Sheffield, BAE Systems are already having real problems in recruitment across on the north-west coast.

Therefore, alongside the very welcome uplift in potential manufacturing employment, there must be a skills strategy – for the country but also for Sheffield and South Yorkshire.

It is time to get our act together locally on a comprehensive programme for training and the contribution of higher education. If we’re to take advantage of any of the welcome new investment, then we will need people with the right training, the right equipment and, for those returning to jobs they vacated in the past, the upskilling necessary to ensure that they can take on the challenge.

For so long, Sheffield has had to rely on service jobs, civil service transfers from London, health and education.

Now is the moment when high quality, well-paid jobs can once again be seen as part of our future, rather than just our manufacturing past.