Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what steps his Department is taking to support the growth of UK-base defence (a) start-ups and (b) small businesses.

Small and Medium Enterprises (SMEs), including start-ups, make a vital contribution to economic growth and are a valuable source of technical innovation in defence. This is recognised in the Defence Industrial Strategy Statement of Intent, as well as the Department’s Social Value policies. We work with our largest suppliers through a network of their SME Champions, trade associations and SME representatives to ensure that SMEs have fair access to opportunities in our supply chain and that our prime contractors are adopting policies, such as fair payment practices, that support small businesses working in defence.

We have announced the launch of a new hub to provide SMEs with better access to the defence supply chain and have committed to set direct SME spending targets for the Ministry of Defence by June this year, ensuring that thousands of small businesses in the UK will benefit from the decision to increase defence spending to 2.5% of GDP. This is a chance for small, often family-owned, firms to bring their innovations, agility and their expert workforce to the task of strengthening Britain’s defences.