The UK government has begun work on a new defence industrial strategy which it says will define steps to increase national resilience, prioritise investment in domestic companies, and boost exports.
Outlined by defence secretary John Healey on 2 December, the activity will see a consultation period run until late February, with the strategy document to be published in “late spring 2025”.
“The UK faces acute and growing threats to our national security: [Russian President Vladimir] Putin’s full-scale invasion of Ukraine and the threat of escalation against NATO allies; conflict in the Middle East; tensions in the Indo-Pacific region; and rising geopolitical instability,” Healey says.
“The deteriorating security environment means we need a new era for defence: to restock our armed forces for today and the future; enact a deep reform of Ministry of Defence [MoD] procurement; [and] add urgency and co-ordination to our efforts to support Ukraine,” he adds.
“Our aim is to produce a better, more integrated, more innovative and more resilient defence sector.” This will enable the UK to “keep our armed forces equipped, innovating at a wartime pace, and ahead of our adversaries”.
“National security is the foundation for national stability and growth. We are sending a signal to the market and to our adversaries: with a strong UK defence sector we will make Britain secure at home and strong abroad,” he says.
Other objectives include to “seize the opportunity presented by the technologies of the future, while growing our share of today’s market through a new focus on exports”.
The MoD says that under the new model, “UK-based defence firms will be prioritised for government investment”.
“The strategy will help make the defence sector an engine for UK growth and will strengthen domestic supply chains in critical areas, such as semi-conductors and steel,” it notes. “The new government is seeking to address some of the problems of the past which have held back growth in the defence sector, including inefficient spending, skills shortages, a lack of focus on exports and long-term partnerships,” it adds.
As part of a planned process to overhaul defence procurement activities, the MoD also will establish the new role of national armaments director.
According to government analysis, the defence sector employs 434,000 people in the UK. It has been included among eight “priority growth sectors” within a broader industrial strategy process.
“To deliver the right capability to support the UK’s ability to deter, it is pivotal that we continue to contribute to military planning activities,” says Kevin Craven, chief executive of industry body ADS Group.
Near-term decisions facing the government include choices in the fighter sector, where BAE Systems is seeking a continued strong commitment to the Global Combat Air Programme being advanced with Italy and Japan, and Lockheed Martin is pushing London to sign for its next production tranche of stealthy F-35s.
The UK also is currently conducting a Strategic Defence Review activity, the results of which will be published during the first half of next year. The government has already pledged to boost defence spending to 2.5% of gross domestic product, “and will set a clear path in the spring” to reach this benchmark.
