Industry, innovators and investors will benefit from a new
partnership with UK Defence, making it easier and more
attractive to do business than ever before.
Launching this new partnership with a package of measures
including a new 'Tech Scaler' pilot , MP will today (13 May)
become the first Defence Secretary to close the day's market at
the London Stock Exchange, underlining the government's backing
for the defence industry as an engine for national renewal and
economic growth.
Speaking to business leaders, military personnel and private
financiers, he called for an end to prejudice against defence
investment and outlined how defence is driving economic growth,
boosting British jobs and national security, underpinning the
Government's Plan for Change.
Defence Secretary MP will say:
“The war in Ukraine confronts us with the truth that a military
is only as strong as the industry which stands behind it.
“I'm here today – at this most crucial time – to help forge a new
partnership between industry, innovators and investors.
“UK Defence is open for business and together we can make Britain
secure at home and strong abroad.
“National security is at the heart of our Plan for Change, and is
essential for economic security, investor confidence and social
stability.”
The Defence Secretary set out a package of measures to foster
easier access to the defence market, including:
-
Defence Tech Scaler: A new Ministry of Defence
Marketplace to drive innovations from idea to front line, with
Enterprise Agreements for software, data and AI suppliers, to
make it easier for innovative businesses, of all sizes, to do
business with defence. As part of this, the Ministry of Defence
has signed four Enterprise Agreements with firms including
Adarga, Haedean, Oxford Dynamics and WhiteSpace – to a total
value of up to £50 million.
-
Procurement Reform: A new segmented approach
and radically faster targets for procurement in three areas: 1)
major equipment – planes, tanks, ships – will go from an
average of six to two years to get on contract; 2) upgrades to
communications and weapons systems will go from an average of
three to one year to get on contract, and 3) purchases of
off-the-shelf kit – such as drones and software – will run in
three-month cycles. For Armed Forces, this will mean they will
get what they need when they need it, and for investors, it
will mean a timelier return on investment.
-
Defence Innovation: A new innovation
organisation, UK Defence Innovation, will help deliver
cutting-edge technology to the Armed Forces and will be up and
running by July this year, with a ring-fenced budget of £400
million this financial year.
-
Defence Industrial Joint Council, led by the
Defence Secretary, will host its first meeting next month, and
help co-ordinate public-private investment strategies -
boosting investment into UK defence and delivering new jobs
across Britain.
These measures come as a new report shows the value of the
defence industry to the wider UK economy. The report, published
today, found that funding from the MoD's Defence and Security
Accelerator (DASA) to 461 small and medium enterprises (SMEs)
resulted in nearly £600m in private investment and created 1,842
new jobs across the UK. £174 million was raised in 2024 alone,
demonstrating defence as an engine for UK economic growth and
delivering on the government's Plan for Change. DASA continues to
fund and support SMEs developing defence technology innovations,
particularly dual-use technologies serving both civilian and
military needs.
Daniel Maguire, Group Head, London Stock Exchange Group
said:
“The defence industry plays a vital role in the wider UK economy,
supporting jobs and creating long-term value alongside ensuring
our national security. We welcome the Government's new measures
and hope that LSEG can support in initiatives designed to help
unlock capital for companies, boost growth, and promote
innovation.”
Last month, the Government welcomed the launch of a new UK
Defence and Economic Growth Task Force - led by the Confederation
of British Industry (CBI) CEO and consulting firm Oliver Wyman,
and jointly chaired by the Chancellor and Secretary of State for
Defence. The Task Force will meet for the first time this month
to unlock the potential of the UK's defence sector to drive
long-term national growth, innovation, and economic resilience.
