UK to require economic benefits from award of major foreign defence contracts

LONDON, Oct 30 (Reuters) - Britain will require overseas defence suppliers winning selected military contracts worth more than £50 million ($67 million) to deliver jobs, investment, skills or other economic benefits in the UK, under a new policy announced on Friday.

• The government said the policy would apply on a case-by-case basis from April 2027, with a new Offset Authority overseeing agreements and delivery

• Contractors could be required to generate economic benefits in Britain worth up to the value of a contract, meaning a 100 million-pound contract could result in up to £100 million of investment, jobs or skills programmes

• The government said more than £35 billion had been spent on defence contracts with overseas suppliers since 2016, representing about 11% of direct Ministry of Defence spending with industry

• Britain sees higher defence spending as a way to strengthen both its military and its industrial base

($1 = 0.7503 pounds)

(Reporting by Sam TabahritiEditing by Keith Weir)