IOM3 seeks views on Defence Industrial Strategy
The UK government has published a Statement of Intent inviting views on its plan to develop a new Defence Industrial Strategy.
The Ministry of Defence (MOD) has set out its approach to developing a new Defence Industrial Strategy that aims to align the imperatives of national security with the goal of a high-growth economy. It will be a sector plan as part of the broader modern Industrial Strategy and aim to boost industrial innovation and grow onshore production capability. As part of its development, the MOD will examine how to best prioritise UK based businesses without losing the benefits of the competitive market.
Some key areas of focus will include job creation, driving technological innovation, training and upskilling workers, encouraging UK-based production and supporting UK exports. The overarching goal of the strategy will be to grow the sovereign capacity of the defence industry in a way that boosts GDP growth. Some existing barriers the new strategy will seek to overcome include falling defence exports, a skills shortage, a slow pace of innovation and investment bottlenecks.
The new Defence Industrial Strategy will be based around six key priorities. These are as follows:
- Prioritise and promote UK based businesses for defence investment, particularly in areas with high potential for UK economic growth and comparative advantage.
- Create partnerships with new research and industrial ventures between government and business.
- Build certainty and stability for investors by sending clear market signals through MOD policies, thus mobilising private sector investment alongside public money.
- Dramatically increase the pace in procurement, defence research, innovation, and acquisition for new, clean and emerging technology.
- Spread prosperity by using defence investment to actively generate wealth, boost exports and create high quality jobs.
- Ensure that the Defence Industrial Strategy enhances the credibility of deterrence against aggression.
As a first step in building partnerships towards these goals, the MOD will replace the Defence Suppliers Forum, with a new Defence Industrial Joint Council (DIJC). This will continue to involve the largest defence companies whilst also bringing in participation from the tech sector, small and medium enterprises, universities, further education and relevant trade unions. The DIJC will improve decision making and productivity by sharing information between market participants and government.
The new Defence Industrial Strategy will be structured around the six priorities and will be published in late Spring 2025.
To contribute to the IOM3 response to the Statement of Intent, please contact [email protected] by 10th February 2025.
