UK unveils growth package for defence SMEs to boost innovation

By Sam Tabahriti

LONDON (Reuters) -British defence minister John Healey on Tuesday announced new measures aimed at boosting small and medium-sized enterprises in the defence sector, including reforms to speed up procurement and encourage investment in emerging technologies.

Prime Minister Keir Starmer’s government is looking to distribute the economic benefits of an increase in defence spending triggered by U.S. President Donald Trump’s demand that European countries spend more to ensure their own security.

“The war in Ukraine confronts us with the truth that a military is only as strong as the industry which stands behind it,” Healey said.

The government has previously said it wants to turn Britain into a “defence industrial superpower”, including awarding more contracts to smaller companies and creating a “defence dividend” of skilled and well-paid jobs for voters.

On Tuesday Healey said procurement times for major equipment such as planes, tanks and ships would be cut to two years from six, systems upgrades would be contracted within one year instead of three, and off-the-shelf purchases would run in three-month cycles.

A new pilot scheme would serve as a defence marketplace to help innovations reach the armed forces more quickly, the government said. It also plans to establish a dedicated innovation body by July, with a 400 million pounds ($528.32 million) budget for this financial year.

A Defence Industrial Joint Council, chaired by Healey, will also be launched next month to help coordinate public and private investment in the sector.

($1 = 0.7571 pounds)

(Reporting by Sam Tabahriti; editing by William James)

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