Sign in Subscribe
Stock exchanges

UK Government Launches New Partnership with Defence Industry to Boost Innovation and Investment

Strategic Insights

— 2 min read

The UK Government has launched a new partnership with the defence industry to unlock innovation, create skilled jobs, and boost investment. Defence Secretary John Healey MP announced the partnership, which includes a new "Tech Scaler" initiative to drive innovations from idea to frontline, and a new procurement reform approach to make it easier for businesses to do business with defence. The partnership aims to make the UK a more attractive place for businesses to invest in defence, supporting the Government's Plan for Change.

Key Takeaways:

  • The new partnership between UK Defence and industry aims to make it easier and more attractive to do business than ever before, unlocking innovation, creating skilled jobs, and boosting investment.
  • The Defence Secretary announced a new package of measures, including a new "Tech Scaler" initiative to drive innovations from idea to frontline, and a new procurement reform approach to make it easier for businesses to do business with defence.
  • 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.
  • The Defence Secretary has called for an end to prejudice against defence investment and outlined how defence is driving economic growth, boosting British jobs and national security.
  • A new report shows small and medium enterprises funded by the Ministry of Defence have attracted nearly £600 million private equity investment, supporting over 1,000 new jobs across the UK.
  • The Defence Secretary has set out a package of measures to foster easier access to the defence market, including Defence Tech Scaler, Procurement Reform, and Defence Innovation.
  • The new "Tech Scaler" initiative will drive innovations from idea to frontline, with Enterprise Agreements for software, data, and AI suppliers to make it easier for innovative businesses to do business with defence.
  • The Ministry of Defence has a new innovation organization, UK Defence Innovation, which 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.
  • A new report shows the value of the defence industry to the wider UK economy, with funding from the MoD's Defence and Security Accelerator (DASA) resulting in nearly £600m in private investment and creating 1,842 new jobs across the UK.

Statistics:

  • £600m private equity investment attracted by small and medium enterprises funded by the Ministry of Defence, supporting over 1,000 new jobs across the UK.
  • £174m private investment raised in 2024 alone, demonstrating defence as an engine for UK economic growth and delivering on the government's Plan for Change.
  • 461 small and medium enterprises (SMEs) funded by the Ministry of Defence's Defence and Security Accelerator (DASA) resulting in nearly £600m in private investment and creating 1,842 new jobs across the UK.
  • £400 million ring-fenced budget for UK Defence Innovation this financial year.
  • Four Enterprise Agreements signed with firms including Adarga, Hadean, Oxford Dynamics, and WhiteSpace, to a total value of up to £50 million.

Sources:

  • Defence Secretary John Healey MP's speech, as published on the UK Government's website.
  • A new report, published today, showing the value of the defence industry to the wider UK economy.
  • Daniel Maguire, Group Head, LSEG Markets' statement, as published on the LSEG website.
  • Last month's 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.

Read more