Defence Secretary sets out plan to foster easier access to the defence market

Homeland May 29, 2025

The UK government has announced the largest sustained increase in defence spending since the Cold War, with a commitment to raise spending to 2.5% of GDP from April 2027

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.

The Defence Secretary has 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, Hadean, 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 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, LSEG Markets 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.”

In April, 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.

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