The UK government has reaffirmed its commitment to the Defence and Industrial Strategy, showcasing significant contract milestones and outlining future investment opportunities for the defence supply chain.
In a speech at the Sea Power Conference, Luke Pollard MP, Minister for Defence Readiness and Industry, detailed how the strategy is already delivering a more capable Royal Navy and reinvigorating the UK’s industrial base. He emphasised the government’s ongoing mission to “overhaul procurement, cutting contracting times, speeding up the ability to spiral develop, [and] increasing support for SME’s and exporters.”
A key development highlighted was the new “Atlantic Bastion” programme, which aims to create a hybrid Royal Navy using AI and autonomous systems. The Minister confirmed that 20 “Phase One” contracts, worth a total of £4 million, have just been awarded to a mix of prime contractors, SMEs, and tech firms. A further £35 million investment in the most promising innovations is set to follow within the next 12 months.
Pollard underscored the substantial financial commitments backing the strategy, including:
- An additional £5 billion in this year’s defence budget.
- A commitment to raise defence spending to 2.5% of GDP by 2027.
- £6.9 billion already being invested in the UK’s surface and submarine fleets.
- A £250 million fund for five designated “defence growth zones” to stimulate regional investment and skills.
The Minister pointed to a series of major contracts as proof of the strategy’s success in creating an “always on ship building pipeline.” These include a £316 million contract for the DragonFire laser weapon system, a £10 billion Type 26 frigate deal supporting 2,000 supply chain jobs, and new solid support ships being built in British yards for the first time in many years.
The speech sent a clear message to the supply chain: the government is actively executing its long-term industrial strategy. With 86% of over 1,000 major defence contracts signed since the last election going to British-based businesses, the focus remains firmly on leveraging domestic innovation and industry partnerships to build the next-generation Royal Navy.
