Small defence firms to get easier access to MoD contracts under new growth unit

"Small British defence companies are set to gain easier access to Ministry of Defence contracts after the government launched a dedicated unit to simplify procurement and boost spending with smaller suppliers. The Ministry of Defence has unveiled the Defence Office for Small Business Growth, a new service designed to cut through what ministers describe as labyrinthine procurement processes that have historically shut small and medium-sized enterprises (SMEs) out of the defence market."

"Announcing the initiative, Luke Pollard, minister for defence readiness and industry, said the government wanted to redirect more defence spending towards British firms and trusted allies. "In more difficult times, being able to bring more of our supply chain to Britain, or to friendly NATO partners, is absolutely vital to building our war-fighting readiness and deterrence," Pollard said. "Any military is only as strong as the industry behind it.""

"The initiative forms part of a wider push to reverse a long-term decline in SME participation in defence procurement. The MoD currently spends around £5 billion a year with roughly 12,000 SMEs operating in the UK defence sector. Ministers now want to increase that figure by 50 per cent, equivalent to an additional £2.5 billion a year, by May 2028."

The Ministry of Defence established the Defence Office for Small Business Growth to simplify procurement and increase defence spending with smaller British suppliers. The new service will provide tailored guidance from commercial experts and a confidential channel for firms to raise concerns about treatment by government buyers or large prime contractors. The office aims to cut through labyrinthine procurement processes that have historically excluded SMEs and address previous tendencies to favour large overseas suppliers with insufficient UK content. Ministers aim to raise MoD spending with UK SMEs by 50 percent, adding £2.5 billion annually by May 2028 to strengthen supply chains and readiness.

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