Understanding the Defence Industrial Strategy’s Statement of Intent

Understanding the Defence Industrial Strategy’s Statement of Intent: Defence capabilities to drive economic and regional growth

• UK Government releases Statement of Intent for Defence Industrial Strategy with request for feedback from wider industry needed by Friday 28th February 2025.
• Narrative underpinned by volatile geopolitical landscape which focusses on Government-Business partnerships, promotion of innovation, and resilience within supply chains.
• The primary objective is to allocate 2.5% of GDP to defence.

HM Government continues with its collegiate approach through the invitation to respond to the Defence Industrial Strategy’s Statement of Intent (SoI). Defence has been highlighted as one of the eight economic growth areas within the Industrial Strategy, with an emphasis on buying British. Furthermore, National Security and Skills are being designated as deeply connected further to the recent announcement from Secretary of State for Defence, John Healey MP.

He commented: “Our defence sector should be an engine for jobs and growth, strengthening our security and economy. That requires a defence industry that is better and more integrated – one that can keep our Armed Forces equipped, innovating at a wartime pace, and ahead of our adversaries.

We will develop this new Defence Industrial Strategy with industry, with innovators and with workers. We will mobilise the private sector to help face down global threats, direct more public investment to British businesses and create jobs and growth in every nation and region of the UK.

National security is the foundation for national stability and growth. We are sending a signal to the market and to our adversaries: with a strong UK defence sector we will make Britain secure at home and strong abroad.”

The Defence Industrial Strategy will draw on insights from the Strategic Defence Review; however, it will maintain its own distinct focus. The strategy will be published in spring 2025 with a vision that extends to 2035. The paper noted deterrence against adversaries will be achieved through onshore UK capabilities.

Its strategic aims focus on:

• Doing Better – whether that is related to skills or delivery of products and services as this will meet the demands driven by the current political climate and provide value for the taxpayer.
• Effective Integration – this will be through government, allies, trade unions, and commercial partnerships enhancing the Armed Forces’ capabilities.
• Prioritising Innovation means progressing sustainable technologies that contribute to the evolving battlespace through data that is driven by R&D and science.
• Heightened Resilience throughout the sector, including the supply chain, will also reinforce the British Armed Forces’ capabilities.

These aims connect with the main priorities of the Defence Industrial Strategy which seeks to prioritise UK business, partnerships, certainty and stability, prosperity, and deterrence. The final priority is ‘seize the future,’ this is of particular importance to the supply chain. The SoI comments how HM Government will accelerate procurement, defence research, and the acquisition of new clean technologies by promoting a diverse supplier community, including ‘non-traditional’ SMEs. Furthermore, the government seeks to leverage mature civil technologies innovatively, encourage dual-use systems that move into the civil sector, and expedite the integration of early-stage technology.

Of note, the UK MoD will replace the Defence Suppliers Forum with a new Defence Industrial Joint Council.

What does the SoI (Statement of Intent) say about the regions?

The SoI recognises that to grow the economy, benefits must be felt throughout the UK. This can be tackled through opportunities focussed on skills, innovation, and production capabilities that deliver on UK exports.

Through advancing onshore defence capabilities and enhancing the UK’s procurement, innovation, and R&D ecosystem, this will ensure an increased contribution to overall GDP growth by elevating productivity, developing key technologies, boosting UK exports, and tackling regional inequality.

Colin Turner, CEO of WEAF, commented: “WEAF welcomes the integration of the Defence Industrial Strategy with the broader UK Industrial Strategy. The emphasis on regional growth is crucial for driving the UK’s economic development. Many of our members are actively involved in the defence sector, making their contributions vital in shaping the strategy and showcasing the significant role our region plays in supporting the capabilities of the UK’s Armed Forces”.

WEAF encourages members to respond to the statement of intent and is available to support responses to help shape the defence landscape and its benefits to the South West.

Sources:
“National security is the foundation for growth” – Defence Secretary launches new strategy to boost UK jobs and growth. – GOV.UK
Defence Industrial Strategy – Statement of Intent – GOV.UK