Foreign defence contractors will need to invest in UK under new rules

Foreign firms awarded large defence contracts will need to invest an equal value back into the UK to create "bang for the British buck", Defence Secretary Wes Streeting has announced.

Under the new rules, companies receiving more than £50m will need to spend an equivalent amount on British factories, jobs and training.

It comes as the government continues to face pressure to hit its target of spending 3% of GDP on defence by 2030, an objective some opposition MPs and defence analysts have questioned its ability to deliver.

Streeting told BBC Breakfast the new rules would help achieve this target given it "does come at a cost to the country and other things we'd like to spend money on".