Lords Committee Calls for Evidence on Defence Procurement Reform - Supply Chain Businesses Urged to Respond

Lords Committee Calls for Evidence on Defence Procurement Reform – Supply Chain Businesses Urged to Respond

Homeland June 19, 2026

The UK government is preparing to enter formal negotiations to join the European Union's €90 billion (£78 billion) loan facility for Ukraine - a move that would open up significant defence contract opportunities for British industry while deepening the UK's post-Brexit security alignment with Europe. Negotiations are expected to begin in May 2026, with Downing Street explicitly citing the economic opportunity for UK defence companies as a core rationale alongside the broader security imperative. What the Scheme Involves The EU loan facility is designed to channel large-scale financing into Ukraine's defence and reconstruction needs. Participation in the scheme would allow UK-based defence companies to bid for contracts funded through the loan - contracts that would otherwise be restricted to EU member state suppliers. The access comes at a cost. The UK is expected to contribute to a portion of the interest payments on the loan as a condition of participation - a

The House of Lords Industry and Regulators Committee has launched a formal call for evidence on the relationship between government and the defence industry, with a submission deadline of 21 July 2026. This is a direct opportunity for supply chain businesses to put their experience on the parliamentary record.

The inquiry follows the 2025 Strategic Defence Review’s call for a new government-industry partnership, and the Committee’s questions are squarely focused on the issues that matter most to businesses working in or trying to enter the defence market. The areas under examination include how procurement processes and contracts need to change to keep pace with fast-moving technologies such as drones and counter-drone systems; what barriers smaller businesses face when engaging with MoD procurement and how these should be addressed; how the government and regional and local authorities can better support local defence industries; and what cultural changes are needed to make the new partnership model work in practice.

Baroness Hayter, Chair of the Committee, set out the ambition clearly: “The Strategic Defence Review set a vision that by 2035 the UK would be a leading tech-enabled defence power, delivered by a new partnership with industry. The Committee wants to hear from industry representatives and experts how defence planning and procurement, as well as regulatory processes, need to change to deliver this vision.”

For SMEs in particular, the question on procurement barriers is a rare formal channel to communicate the realities of working with the MoD directly to parliamentarians with the power to recommend change. If late payment, access to frameworks, contract structuring, security clearance processes, or cash flow are issues affecting your business, this inquiry is the place to say so.

Evidence can be submitted via the Committee’s website at committees.parliament.uk/call-for-evidence/3929. The deadline is 21 July 2026.

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