From the regions to resilience - five priorities for the UK’s defence sector.

The objective of defence and security remains to protect and deter, but in a country needing economic growth and improved prosperity, it has also become a lever for driving industrial strategy too. 

Despite most government departments facing cuts or slowdowns, defence has a guaranteed increase in spending at least for the next decade. With mounting pressure from NATO, not to forget the President across the pond, the Chancellor has set a course for spending 2.5 per cent of GDP on defence by 2027. 

The recent DSEI conference in London was a showcase of the UK’s present and future strength in defence – but it was also an indication of the areas that should be prioritised to make the most effective use of the increased funding. 

Boosting regional growth 

The recently published Defence Industrial Strategy set aside £250 million for investment across the UK, helping drive regional economic growth in areas of industrial significance. 

The strategy will undoubtedly boost existing defence hubs in Bristol and Barrow-in-Furness, but the Defence Growth Deals include a £4bn investment in Plymouth as a naval hub and funds for South Yorkshire to further its status as a primary developer of submarines. 

By combining industrial heritage with future ambitions for advanced manufacturing, the sector has an opportunity to provide sustained and stable regional growth for years to come, becoming a local economic focus point for those working directly in the industry and its wider local supply chains. 

Advancing technology 

One theme from DSEI is the need for speed to keep up with the increasing demands on the UK’s industry. Global instability has pushed the government into acting faster to upgrade technological resilience. 

The £31 billion ‘Tech Prosperity Deal’ with the United States will enhance AI capabilities, helping the operation of drones and quantum sensors to support the AUKUS partnership – an agreement between Australia, the UK and the US – which is leading to a larger and more advanced fleet of nuclear submarines. 

Adaptability of manufacturing 

Underpinning the nation’s ambition to become a global leader in advanced manufacturing is an opportunity to connect growing domestic manufacturing to the defence industry, allowing for flexibility to respond to demands. 

As a country, we don’t have the need or capacity for inactive arms factories, but industrial growth in parallel sectors with readily adaptable facilities can help to facilitate a quick shift to being ready for conflict. Defence already relies on the support of the automotive sector, and the continuation of using modular parts that can be used for both cars and carrier jets is both more cost effective and sustainable. 

Reforming procurement, supporting SMEs 

The Ministry of Defence is no stranger to projects that have massively overrun, bust budgets or fallen short of promised benefits. 

Procurement is viewed by some as labour-intensive and unresponsive to the modern defence challenge. 

At the heart of the problem is connecting SMEs to sector growth. Over 700 SMEs attended DSEI this year, marking the highest presence in the event’s history, and the call for a more integrated, less demanding procurement model was clear. 

Communicating a clear growth narrative 

There is now greater scrutiny on the industry following the rise in defence spending within this parliament. For the government and the industry there remains a need to communicate the defence industry’s importance to national security but also its role as a catalyst for growth across the UK’s former industrial heartlands.