The Government has announced new support to help small businesses access defence investment and ensure they benefit from the increased defence budget. A new SME support hub will guide entering the defence supply chain, creating jobs and driving economic growth in small towns and suburbs nationwide.
As part of the Government’s Defence Industrial Strategy, direct SME spending targets for the Ministry of Defence will be set by June 2024. This will give smaller firms greater opportunities to contribute their expertise, agility, and innovation to UK defence. Currently, only 4% of defence spending goes to SMEs, despite nearly 70% of overall defence investment being made outside London and the South East.
With defence spending set to rise to 2.5% of GDP by April 2027 – and a target of 3% in the next Parliament – this investment will strengthen the UK’s industrial base while creating a stable environment for business growth. The hub will support up to 12,000 SMEs, helping them secure finance, train workers, and win contracts.
Defence spending already supports over 430,000 jobs across the UK, with significant increases in regions like the East Midlands, Northern Ireland, and Yorkshire. The Government’s commitment to boosting SME participation will enhance procurement choice, speed up innovation, and strengthen UK defence technology, benefitting businesses and national security.
Talk to us about your small business.