Government Unveils Major Support for Small and Medium Defence Enterprises
The UK Government has announced a significant "engine for growth" initiative aimed at empowering small and medium enterprises (SMEs) within the defence sector. This move is set to boost innovation, drive economic growth, and strengthen national security across the country[1][5].
Key Highlights of the Growth Package
- Funding from the Ministry of Defence’s Defence and Security Accelerator (DASA) to 461 SMEs has led to nearly £600 million in private investment.
- 1,842 new jobs have been created across the UK, demonstrating the industry’s positive impact on employment.
- In 2024 alone, SMEs attracted £174 million in private equity investment, underlining the sector’s role as a driver of economic growth.
- The initiative supports the government’s wider Plan for Change, which emphasizes innovation and dual-use technologies benefiting both civilian and military markets.
Backing Regional Growth and Economic Resilience
The government’s report highlights the critical value of the defence industry beyond London, with nearly 70% of defence spending now directed to businesses and workers outside London and the South East[2]. These measures aim to ensure that regional SMEs benefit directly from the UK’s expanded defence investment.
Industry Reactions
Daniel Maguire, Group Head of the London Stock Exchange Group, commented, "The defence industry plays a vital role in the wider UK economy, supporting jobs and creating long-term value alongside ensuring our national security. We welcome the Government’s new measures and hope that LSEG can support in initiatives designed to help unlock capital for companies, boost growth, and promote innovation."[1][5]
Strategic Initiatives and Future Plans
- The Defence Industrial Joint Council, led by the Defence Secretary, is set to host its first meeting next month to coordinate public-private investment strategies.
- A newly formed UK Defence and Economic Growth Task Force, jointly chaired by the Chancellor and Secretary of State for Defence, will focus on unlocking the potential of the UK’s defence sector to drive long-term national growth and innovation[1].
Continued Commitment
The Ministry of Defence’s ongoing support for SMEs, particularly those developing innovative dual-use technologies, is positioned as a cornerstone of the UK’s commitment to bolstering both national security and economic advancement. By amplifying access to defence contracts and encouraging private investment, the government aims to solidify the UK’s role as a global leader in defence innovation and technology[2][5].
For more information about the Ministry of Defence and its initiatives, visit the
Ministry of Defence website[1].
