Nuclear Weapons
The question
To ask the Secretary of State for Defence, with reference to recommendation 33 of the 2025 Strategic Defence Review, what progress has he made in making amendments to the Single Source Contract Regulations to incentivise industry investment in infrastructure and asset management.
Answered by Ministry of Defence
The Government is reforming the broken procurement system we inherited from the last administration. The Department has been working at pace on a review of the Single Source Contract Regulations, which governs some of the nation’s largest and most strategically important defence procurements and accounts for around half of defence spending on equipment. In May, we changed the law to increase the amount of profit available to suppliers delivering priority outcomes, such as faster delivery or greater productivity.
We will be introducing further legislative changes this year to incentivise innovation, reduce the regulatory burden on Small and Medium Enterprise and encourage our suppliers to take on more risk bearing contracts, a Defence Industrial Strategy commitment.
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