Defence

The 2025 Defence Industrial Strategy, the sector plan for Defence of the UK’s Modern Industrial Strategy, is designed to make Defence an engine for growth for the UK, by backing jobs, industry and innovation.

The UK has one of the most advanced and innovative defence industrial bases the world over, and the UK Government is committing to the largest sustained increase in defence spending since the end of the Cold War. The Defence Industrial Strategy outlines the ways in which we will ensure that this investment is unlocking the untapped growth potential in the defence sector, by boosting thriving industrial ecosystems in places in all four nations of the UK, resolving skill gaps, prioritising dual-use technology and removing barriers to growth for UK businesses.

Frontier industries include:

  • Combat air
  • Complex weapons
  • Directed energy weapons
  • Next generation land and maritime capabilities
  • Quantum technologies
  • Drones and autonomous systems
  • Space
  • AI
  • Cyber
  • Engineering biology
  • Advanced connectivity technologies
  • Semiconductors

Why the UK for Defence?​

An innovation hub

The UK is turbocharging innovation with a new £400 million ringfenced budget for UK Defence Innovation, alongside a commitment to spend at least 10% of the Ministry of Defence equipment budget on novel technologies.

A national priority

The Industrial Strategy will build on the UK Government’s largest sustained increase in defence spending since the Cold War – to 2.6% of GDP by April 2027 and an ambition to hit 3% in the next Parliament as economic and fiscal conditions allow – coupled with reforms to procurement and planning, to support investment.

Regional opportunities

Our defence capability is spread throughout the country.  Ministry of Defence spending with industry supports over 200,000 jobs across the UK, with nearly 70% of spending outside London and the South East. For example, Plymouth is home to a cluster of world-class marine businesses and leading research institutions, and Barrow-in-Furness plays a critical role in maintaining the UK’s nuclear deterrent.

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This free online service provides businesses with immediate access to tailored information and support, including:

  • • Step-by-step guidance through the practical steps to setting up a UK company
  • • Overview of funding, grants and financial incentives available to overseas businesses
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  • • Information on events and networks relevant to the business sector and industry
  • • Guidance on how to globally scale your business from the UK and access export advice once established in the UK

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