Defence: Finance
The question
To ask the Secretary of State for Defence, with reference to page 7 of his department’s Defence Industrial Strategy, published 8 September 2025, what progress has been made on introducing an offset policy.
Answered by Ministry of Defence
Building on the Defence Industrial Strategy, the Defence Investment Plan commits to a package of ‘Back British’ measures to ensure increased defence spending strengthens UK industrial capability, resilience and growth.
Delivery is already underway through DIS initiatives to back UK-based businesses, including work on a potential UK offset policy, social value reform, and measures to help SMEs start, scale and succeed. This includes the Defence Office for Small Business Growth and SME Action Plan, supporting our commitment to increase SME spend by £2.5 billion by 2028. Taken together, these measures will help make the UK a defence industrial leader by 2035, ensuring every pound spent on defence strengthens the capabilities, resilience and readiness of the Armed Forces.
The Department has completed its consultation on a potential UK offset policy and is currently considering the evidence.
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