Defence: Procurement
The question
To ask the Secretary of State for Defence, what steps he is taking to increase defence spending with SMEs by 50% by 2028.
Answered by Luke Pollard
The Ministry of Defence (MOD) has committed to increasing direct and indirect spending with small and medium-sized enterprises (SMEs) by 50% from the 2023-24 baseline, taking total SME spend to £7.5 billion by May 2028.
To achieve this ambition, the Department is simplifying procurement processes, introducing a dedicated SME commercial pathway, and providing tailored support to smaller businesses through the Office for Small Business Growth. The MOD is also promoting fair and open competition through the Defence Sourcing Portal and working with prime contractors to improve SME access to defence supply chains.
In addition, the Government is supporting the growth and innovation of UK defence SMEs through targeted initiatives, including investment in defence technology and innovation, a £250 million package of regional defence growth deals, and a protected £1.6 billion defence innovation budget set out in the Defence Investment Plan. Together, these measures are intended to help SMEs across the UK access defence opportunities and benefit from increased defence investment.
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