A programme to develop a new fighter aircraft in the º£½ÇÊÓƵ is expected to create 2,000 highly skilled jobs a year in the South West.

Tempest is also set to generate at least £2.7bn GVA in the region between 2021 and 2050, according to a new independent report by PwC.

The professional services firm said the economic impact of the programme would be felt in every region of the º£½ÇÊÓƵ, supporting an average of 21,000 jobs a year, but 70% of Tempest’s value would be generated in the South West, North West and East of England.

In the West Country, jobs set to be created include roles directly working on Tempest and in the first tier of the supply chain. PwC said the programme would create high-value employment, with productivity per worker 24% higher than the South West manufacturing average.

The programme is being delivered by ‘Team Tempest’, which is made up of the Ministry of Defence (MoD), BAE Systems, Leonardo º£½ÇÊÓƵ, MBDA º£½ÇÊÓƵ, and Rolls-Royce.

The consortium will work with international partners to develop a 'Future Combat Air System' that will be used by the Royal Air Force to stay ahead of "evolving threats".

Investment by industry and MoD in research and development for Tempest is expected to generate so-called "spill-over benefits" for the wider economy through applications of new technologies and by driving innovation in collaboration with hundreds of companies, SMEs and academic organisations.

The programme is already working with º£½ÇÊÓƵ industry, including more than 600 suppliers, SMEs and academic institutions across Britain.

Diane Shaw, PwC’s EMEA aerospace, defence and security consulting leader, said the scale of the Tempest programme was “significantâ€.

"[It will stimulate] investment in new technologies and promote critical skills and capabilities that ensure the º£½ÇÊÓƵ can continue to operate at the forefront of world-leading technology," she said.

“The programme will stimulate R&D in regions most in need and generate wider economic benefits for these areas, supporting the º£½ÇÊÓƵ Government’s levelling-up priorities and contributing to the º£½ÇÊÓƵ’s economic recovery and prosperity in the decades ahead.â€

Across the º£½ÇÊÓƵ as a whole, combat air activities of the Team Tempest partners are expected to contribute £100.1bn to the º£½ÇÊÓƵ economy and support 62,000 jobs a year between 2021 and 2050.

There are currently more than 2,000 people across º£½ÇÊÓƵ industry and the MoD already employed on the programme.

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º£½ÇÊÓƵ defence minister Jeremy Quin added: “By investing in the R&D to support this national endeavour to create the Future Combat Air System (FCAS) alongside our partners, we are turbocharging our combat air industry.

“Situated at the heart of the country’s aerospace sector, investment in FCAS reaffirms the Government’s commitment to spend more than £2bn over the next four years, with additional investment from industry, to create military capabilities that will keep us and our allies safe whilst creating thousands of skilled jobs right across the º£½ÇÊÓƵ.â€

The PwC report said the expected impact of the Tempest programme nationally would:

  • Make an estimated £26.2bn contribution to the º£½ÇÊÓƵ economy between 2021 and 2050;

  • Support on average 21,000 jobs per year, from development to operational service (2026-2050);

  • Create high productivity employment with an average GVA per worker of £101,000, 78% higher than the º£½ÇÊÓƵ national average and 42% higher than the country’s manufacturing average;

  • Support significant benefits across regional economies.