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UK Defence Secretary John Healey has announced an overhaul of defence industry reform with a package of measures to foster easier access to the defence market.
The new “engine for growth” package is envisioned to provide government backing for the defence industry to become an engine for national renewal and economic growth.
Speaking to business leaders, military personnel and private financiers, Healey called for an end to prejudice against defence investment and outlined how defence is driving economic growth, boosting British jobs and national security, underpinning the government’s Plan for Change.
“The war in Ukraine confronts us with the truth that a military is only as strong as the industry which stands behind it,” Defence Secretary Healey said during a speech.
“I’m here today – at this most crucial time – to help forge a new partnership between industry, innovators and investors.
“UK Defence is open for business and together we can make Britain secure at home and strong abroad.
“National security is at the heart of our Plan for Change, and is essential for economic security, investor confidence and social stability.”
The Defence Secretary set out a package of measures to foster easier access to the defence market.
These include a Defence Tech Scaler initiative to make it easier for innovative businesses of all sizes to do business with defence, including the signing of four enterprise agreements with firms, including Adarga, Hadean, Oxford Dynamics and WhiteSpace to a total value of up to £50 million.
Also a new segmented approach and faster targets for procurement in major equipment (planes, tanks, ships) with two years to get on contract; upgrades to communications and weapons systems will go to one year to get on contract, and purchases of off-the-shelf kit (drones and software) will run in three-month cycles.
He also announced a UK Defence Innovation organisation to help deliver technology to the Armed Forces by July this year, with a budget of £400 million this financial year.
Defence Industrial Joint Council, led by the Defence Secretary, will host its first meeting next month, and help coordinate public-private investment strategies.
“The defence industry plays a vital role in the wider UK economy, supporting jobs and creating long-term value alongside ensuring our national security,” LSEG markets group head Daniel Maguire said.
“We welcome the government’s new measures and hope that LSEG can support in initiatives designed to help unlock capital for companies, boost growth and promote innovation.”
