A Growing Defence Budget & Opportunities for SMEs
The UK is entering a pivotal phase in its defence strategy, with a significant investment boost aimed at enhancing national security. Prime Minister Sir Keir Starmer has committed to increasing defence spending to 2.5% of GDP by 2027, adding £6 billion annually to address evolving global challenges. This represents the biggest sustained increase in defence investment since the Cold War, reflecting a renewed focus on strengthening national security, and reinforcing the UK’s role within the broader European defence alliance.
This investment supports the development of key defence capabilities and presents opportunities for UK manufacturers to contribute to a more resilient and innovative supply chain. As the government looks to improve procurement processes and expand access for SMEs, there is a growing role for specialist technology providers to support the industry with reliable, high-performance solutions.