Government launches 'Back British' industry call to action to boost UK jobs, businesses, and skills

UK businesses, workers and communities are set to benefit under new Government plans to ‘Back British' and ensure defence investment boosts jobs, skills and innovation.

The Government is launching a significant consultation with industry on a ‘Back British' offset approach to ensure that defence import contracts benefit British businesses, jobs and skills.  

The proposals mean that when the UK buys from international partners, the winning contractor would be required to create jobs, know-how and investment opportunities here in the UK – strengthening the UK economy.  

This could mean an international partner is required to base some manufacturing in the UK, use UK small firms in its supply chain or invest in UK skills as a condition of any deal.  

Minister for Defence Readiness and Industry, Luke Pollard, announced the consultation today (23 October), speaking to an audience of over 500 small and medium-sized business (SMEs) at the inaugural Defence Procurement Research, Technology and Exportability (DPRTE) Summit in Manchester.   

The 12-week consultation with the sector will shape any final offset framework, ensuring it works effectively for British based businesses, while maintaining strong relationships with international partners and allies. This delivers on the Strategic Defence Review's ambition to drive a new partnership with industry and a radical reform of procurement, creating jobs, wealth, and opportunity in every corner of the UK.   

SMEs, which form the backbone of the defence industry, will benefit from the new approach. The government has already committed to increase spending with SMEs by £2.5 billion by May 2028, recognising their crucial role in supporting innovation, creating highly skilled jobs and driving economic growth as part of the Plan for Change. This follows the launch of the government's new Small Business Plan, setting out a long-term support for smaller firms and improving the operating environment to start and run a business. 

Minister for Defence Readiness and Industry, Luke Pollard MP said:

Small businesses are the backbone of our economy. We are increasing defence spending and directing more of that at UK based firms.   

Where we have to buy from foreign firms a new offset approach means UK SMEs will benefit from offset agreements.   

By helping open up global supply chains to UK firms of all sizes, a new offset approach will strengthen our Armed Forces while making defence an engine for growth across Britain.

Delivering on the new Defence Industrial Strategy, the offset consultation forms part of a comprehensive package of reforms to strengthen Britain's industrial base, including the establishment of a new Defence Office for Small Business Growth from early next year to provide tailored support. This also follows the appointment of a new National Armaments Director, Rupert Pearce, to work with industry to grow the UK's industrial base and ensure Armed Forces readiness.   

The Minister also announced a new programme for technology start-ups in the North West. Led by the National Cyber Force, the programme will provide participants with expert mentorship, tailored product development support, resilience training, access to co-working spaces and operational scaling guidance. Four startups have been selected to join the North West Cyber Accelerate programme, with activities to be delivered across Lancaster, Manchester and Preston.  

National Armaments Director, Rupert Pearce said:   

It's been excellent to join the Minister at the DPRTE Summit in Manchester and meet with so many businesses, including SMEs, who are vital to strengthening our industrial base and the readiness of our armed forces

The ‘Back British' consultation demonstrates our commitment to ensuring defence investment creates opportunities for UK businesses across all regions, and I look forward to working with industry to deliver on this ambition.

Following today's Summit, Minister Pollard and the new National Armaments Director, Rupert Pearce, visited BAE Samlesbury to see the build of F-35 fighter jets and the Typhoon final production facility at BAE Systems' Warton site. They also visited Altitude, the University of Lancashire's innovation hub for air and space technologies, to meet students, tour the university and take part in a roundtable discussion with SMEs, BAE and supply chain partners organised by the North West Regional Defence and Security Cluster. The Cluster is a collaboration between industry, academia, and government in the UK's North West to boost the region's defence and security sector.  

Kevin Craven, ADS CEO said:

Offset agreements have the potential to be a powerful tool, not only ensuring our Armed Forces get the right equipment, but also unlocking opportunities for all UK businesses from the very smallest to scale, export, and invest.

We warmly welcome the government's recognition that industry must be at the heart of shaping this policy. For these agreements to succeed, they must be built on a foundation of supply chain resilience, ensuring our defence workforce remains secure, our industrial base stays strong, and our national capability delivers maximum value for the taxpayer.

Andrew Kinniburgh, Make UK Defence Director-General said:

We strongly welcome today's launch of the industry consultation for a UK Defence Offset policy. Offset has the potential to boost UK economic growth, create high-quality UK jobs, and support SMEs by driving inward investment into the UK.

With dozens of developed nations operating offset policies with great success, Make UK Defence has long campaigned for the UK to draw inspiration from some of our closest allies and launch a similar scheme to boost our UK economy and our industrial capacity for our Armed Forces.

This is therefore a major win for UK industry and demonstrates that the UK Government is serious about backing UK based businesses. We look forward to continuing to work closely with the MOD to ensure the UK Defence Offset policy maximises the potential to benefits for our economy and our Armed Forces.

Julian Moore, Managing Director Boeing UK & Ireland says:

Boeing is already delivering industrial growth, skills and technological advances through offset policies across the globe. We are pleased to see the UK moving towards this model and welcome the chance to continue contributing to the development of this policy.