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Defence: Small Businesses

Asked by Callum AndersonLabourMinistry of DefenceTabled Answered 8 July 2026UIN 14636

The question

To ask the Secretary of State for Defence, what steps he is taking with Cabinet colleagues to reduce the cost of capital for early-stage defence firms.

Answered by Luke Pollard

The Ministry of Defence works closely with HM Treasury, the Department for Business and Trade, and the British Business Bank to improve access to finance and reduce the cost of capital for early-stage defence firms. This includes strengthening investor confidence through clear long-term demand signals, co-funding innovation with UK Research and Innovation and UK Defence Innovation, supporting venture and growth finance schemes, and providing export support. The Defence Office for Small Business Growth also helps businesses better understand Defence, attract investment, and grow within the sector.

The Defence Finance and Investment Strategy, due to be published later this year following collaboration with the Financial Conduct Authority, will further support the sector by addressing barriers to finance and investment, helping defence businesses access funding through stronger partnerships with public financial institutions and private capital.

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