Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to page 53 of his department's Strategic Defence Review, published 2 June 2025, what new funding models have been identified to make defence innovators a more attractive proposition for private capital.

Delivering on commitments set out in the SDR, DIS, and the DIP, we will publish a Defence Finance and Investment Strategy later this year to set a clear framework for how Government and responsible private capital can work together in support of security, resilience and growth.

To inform the Strategy, the MOD announced a sprint to explore how private investment can be leveraged to drive innovation and growth across the defence sector. Supported by HM Treasury, the Office for Investment, UK Government Investments, public financial institutions and private investors, the MOD has identified a pipeline of investable opportunities and funding models through which private capital could accelerate priority capabilities.

This work will help establish a long-term framework with clearer priorities, improved routes for investor engagement, and more modern delivery models, which will attract private capital at scale, support defence innovators and supply chains, and strengthen resilience across the UK.

Working with the Defence Investors’ Advisory Group (DIAG) and wider stakeholders, we will ensure that investment opportunities are presented in a detailed form and are suitable for risk, investment and compliance committees for each type of private capital with individual opportunities being taken forward where there is clear value for money for the taxpayer, operational need, and deliverability. This will ensure the DFIS reflects market realities and is capable of unlocking investment at scale.