The government has confirmed a series of reforms under the forthcoming Defence Industrial Strategy, aimed at strengthening the competitiveness of UK defence businesses in international markets and expanding opportunities for the supply chain.
A central measure will allow companies to apply for export licences while bidding for contracts overseas, removing the requirement to wait until deals are finalised. This change is intended to shorten procurement timescales, provide greater certainty to prospective buyers, and give British suppliers a stronger platform when competing for major international defence work.
The reforms will also see an expansion of financial backing through UK Export Finance (UKEF). New legislation will increase the maximum size of UKEF’s portfolio, with the government also considering a strategic approach to financing multi-billion-pound defence programmes. The move reflects the growing demand for state-backed financing in international defence competitions and is designed to ensure the UK remains a credible and competitive partner of choice.
Defence Secretary John Healey said the reforms were about ensuring British businesses can secure more overseas orders while sustaining jobs and economic growth across the country. Industry leaders have welcomed the announcement, with ADS noting that exports from the UK defence and security sector have doubled over the past decade. The trade body highlighted that the ability to secure licences earlier in the process will enable suppliers of all sizes to accelerate production and maintain their workforce while strengthening the UK’s overall competitiveness.
The measures follow a period of notable export success, including the recent £10 billion deal to supply at least five Type 26 frigates to Norway, which will support more than 4,000 jobs across the UK supply chain. Defence exports currently contribute more than £14.5 billion annually to the economy, positioning Britain as the second-largest defence exporter globally, behind only the United States.
By easing regulatory barriers and expanding financial support, the Defence Industrial Strategy seeks to reinforce the UK’s position as a leading defence exporter while underpinning the government’s wider ambition to make defence a key driver of national industrial growth.
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