Defence: Finance

(asked on 31st March 2025) - View Source

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what steps he plans to take to use the increase in defence spending to boost British supply chains; and what steps he is taking with Cabinet colleagues to ensure strategic alignment and capitalise on economies of scale in key sectors.


Answered by
Maria Eagle Portrait
Maria Eagle
Minister of State (Ministry of Defence)
This question was answered on 7th April 2025

The additional investment in defence announced by the Prime Minister on 25 February 2025 and by the Chancellor in the 2025 Spring Statement will both protect UK citizens from threats and create a secure and stable environment in which businesses can thrive, supporting the Government’s number one mission to deliver economic growth. This includes maximising jobs, growth, skills and innovation in the UK.

This Government is bringing forward a Defence Industrial Strategy that will ensure a strong Defence sector and resilient supply chains across the whole of the UK. The Statement of Intent for the Defence Industrial Strategy, published in December 2024, set out a commitment to prioritising UK businesses for investment and boosting sovereign capacity.

The Ministry of Defence (MOD) is working closely with other Government Departments to align strategic objectives in key sectors, for example through the wider cross-Government Industrial Strategy. The Strategic Defence Review will also determine the roles and capabilities required by UK Defence to meet the challenges and threats of the twenty-first century.

The MOD is already actively improving the capabilities of the UK’s Defence sector and supply chains through initiatives such as the Defence Supplier Capability Development Programme and the new support hub for small and medium enterprises that the Prime Minister announced on 3 March 2025.

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