Defence: Finance
The question
To ask the Secretary of State for Defence, with reference to page 65 of the Defence investment Plan, published on 30 June 2026, how much and what proportion of additional spending in SMEs will be (a) direct contract sourcing and (b) through defence primes.
Answered by Ministry of Defence
The Defence Investment Plan commits Defence to spending an additional £2.5 billion with small and medium-sized enterprises (SMEs) by 2028. The SME Action Plan published in July 2026 table sets out a clear growth trajectory from 2026-27 onwards, the largest share of spend continuing to flow through the supply chain while direct awards to SMEs also increase.
Direct SME spend is targeted to rise to £1.48 billion and indirect SME spend to £4.5 billion in 2026-27, increasing further to targets of £2 billion direct and £5.5 billion indirect in 2027-28.
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