What we’re doing
Making it easier to work with the Ministry of Defence
We’re improving how UK companies can work with the Ministry of Defence by:
- Reducing electricity costs – From 2027, a new British Industrial Competitiveness Scheme will cut electricity costs by around £35-40 per megawatt hour until 2030, helping thousands of businesses compete more effectively
- Streamlining regulations – We’re working to reduce red tape and make it simpler for companies to supply equipment and services to the MOD
- Better support for businesses – By April 2026, we’ll have a comprehensive package of measures to help our industrial partners work with us more effectively
Supporting small and medium-sized businesses
Small businesses are vital to our defence sector. We’re helping them through:
- The Defence Office for Small Business Growth – This new office will help small defence companies access government funding and private investment
- Setting spending targets – We’re establishing clear targets for how much the MOD spends with small and medium-sized enterprises
- A bold SME Action Plan – This will include a new commercial pathway specifically designed for smaller businesses
Investing in UK manufacturing
We’re building up our domestic defence manufacturing capability:
- £6 billion investment in munitions – Including building at least six new factories for energetics and munitions production
- Protecting critical skills – We’ve safeguarded facilities like the semiconductor foundry in County Durham, the only secure UK facility capable of manufacturing specialist semiconductors for military use
- Regional growth – Major investments like the Plan for Barrow are revitalising defence communities with over £200 million of government investment
Why this matters
A strong UK defence industry means:
Better security
Our Armed Forces get world-class equipment designed and built in Britain
More jobs – Defence already supports over 460,000 jobs across the UK, with nearly 70% outside the South-East
Economic growth
Defence spending of £28.8 billion with UK-based businesses drives innovation and prosperity
Stronger alliances
Helping our allies with British-made equipment strengthens our partnerships and global influence