On a Wednesday morning in April, Ashley Holloyd had a steady but slow flow of customers at a coffee shop in Barrow-in-Furness, an industrial city in the northwest of England. The cafe, Coffee Dash, was open for only six months, and barely filled the spongy space.
Despite the empty storefront on the same street, Holroid is sure he has the best place. BAE Systems, the UK's largest defense company, is planning to open a training facility for hundreds of workers right next door.
Holloyd, 33, jumped at the opportunity to expand his coffee business from trailers to brick and mortar stores, after hearing about Beh's plans to move to town centre, even without a cafeteria for his employees.
“If I didn't, someone else would,” he said. “Don't do that was a huge risk.”
Bae is Barreow's main employer, building Royal Navy nuclear submarines at a shipyard at the edge of town. Like many other defense companies, BAE is in the midst of rapid expansion due to an increase in military spending in the UK.
Governments across Europe have pledged to spend more on defense. They are reassessing their military capabilities and reliance on American defense after worrying about President Trump's commitment to supporting the Ukrainian president in the war with Russia.
The UK government increased military spending to 2.5% of gross domestic product by 2027, and by the end of the decade it had risen to 3%. This year, the Treasury will spend another £2.2 billion ($2.9 billion). But officials want to ensure that money will feed them to create jobs in the country and create local prosperity.
Prime Minister Kiel Starmer hopes Barrow will be the blueprint for this strategy. Over the next decade, the town will receive £200 million in government funding. For many residents, money can be transformative.
The BAE has been washed away by orders from new classes of ballistic missile submarines capable of firing nuclear weapons and other people attacking land targets, working with local and central governments to rejuvenate Barrow.
It's not an altruistic move. A 2023 government report found that without intervention, the town could not support expected growth in BAE and other economic opportunities. Something had to be done to stop the decline in the working-age population, fix infrastructure issues, and attract and maintain workers.
“We are pleased to announce that we are a global leader in our community,” said Phil Drane, program director for Team Barrow, a public-private partnership.
Arnab Bhattacharjee, an economist at the National Institute for Economic and Social Studies, a London think tank, said the model could circumvent the UK. Government ambitions for higher military spending should reach the poorer parts of the country and not concentrate in wealthy areas of London and the southeast, he said.
But he said that to rejuvenate a town where money is struggling, he must do more than increase household consumption. “All that needs is business coming.”
Barrow has long been a central role in British military capabilities, building British Navy vessels since the 1870s. Today, BAE Systems, which owns a shipyard, employs around 14,500 people there. For many locals, high-paying jobs at BAE are the most traditional and highly sought after career paths.
Still, the town is suffering in many ways. A lower score than the national average for health and education outcomes. Over the past few years, town centres have become representative of decline for many onboard retailers. Coffee D'Ash's new home was once a popular clothing store that had been empty for over four years.
Bae's training facility, which simulates some of the work the company does, including design and engineering and office tasks, will move to former Debenhams, a department store chain that closed in 2021 after more than 240 years of business. In Barrow, the closure of Debenham and Marks & Spencer department stores took life from the town centre, causing a domino effect, and more shops were closed.
The facility will not be open until the end of next year, but some business owners say they have already encouraged more businesses to open nearby.
“This is a catalyst for more confidence,” said Jenny Fazacker, who owns a nearby fabric and sewing supplies store.
The gift shop opened a year and a half ago near the old Debenhams. More shops will continue, including dessert restaurants coming next month. Independent stores are beginning to “recover the high streets” from the chains that have been covering the country, Fazacker said, but “it doesn't happen overnight.”
One of the major hurdles facing Team Barrow is how Bae will make the town an attractive place to live as it grows.
Barrow is a short distance from untouched beaches and the mountains and lakes of the UK's Lake District, a national park. However, it is at the bottom of the peninsula and only one way in and out, so it cannot pass tourist traffic.
It's also less picturesque than nearby towns with stone walls and cobblestone streets like Ulverston. It rapidly expanded in the second half of the 19th century, and was planned by Victorian industrialists and was not appealing as a place to live for BAE employees moving to the area.
The new submarine contract will keep Barrow Shipyards busy for years to come. BAE expects to increase Barreow's staff by about 20%, or 2,500, over the next decade or so.
While town centres are one of their top priorities, Drain said public investment also focuses on improving healthcare and education delivery, attracting families and developing a home-made, skilled workforce. This fall, the university's campus opened in a town of land donated by the BAE, and is using money from previous government grants to fund it.
“We are ambitious about the level of change we may be seeing,” he said.
For some, the pace of change was too slow. £200 million was first promised by the previous government more than a year ago. The town has also received other funds over the past few years.
“We are home to defense. What are they doing to ensure that future?” said Jenna Strickland, who works at a local hotel. It feels like money is leaving town on Friday afternoon when the garden closes, she added.
Drain stresses that government investment is a decade's commitment, but he also knows that towns are prone to impatience over change. Despite long-term housing, education and healthcare plans, many residents and business owners are seeking smaller, more urgent interventions to improve town centres, including cheaper parking and lower taxes on commercial property.
Jackie Maguire, who runs the town's Hive restaurant, hopes that more businesses will open nearby. She said people don't know where to go after leaving the restaurant. For now, she plans to open a cocktail bar downstairs, where the home decor and gift shop is currently located.
“There's a lot going on in town, but we're in the very early stages,” Maguire said. “I'm looking forward to it.”
