Chancellor Rachel Reeves will today pledge to cut bureaucratic delays in military procurement as the Government seeks to “fire up” Britain’s defence industry in response to growing security threats.
Speaking at a manufacturing industry conference in London, Ms Reeves is expected to call for a major overhaul of defence procurement rules, emphasising the urgency of strengthening the UK’s military capabilities in the face of Russia’s continued aggression.
Her intervention follows the Government’s commitment to increasing defence spending to 2.5% of GDP by 2027, with a longer-term pledge to reach 3% in the next parliament. The Chancellor will stress the importance of the defence sector to economic growth and outline plans to open up procurement contracts to more small and medium-sized businesses.
She is also set to criticise past administrations for failing to act decisively on military investment.
“For too long, politicians of all stripes have ducked and dodged the decisions needed to fire up Britain’s industrial base and unleash its potential to keep the country safe,” she is expected to say.
“We’re changing that by increasing defence spending and making defence a cornerstone of our industrial strategy to create jobs, drive growth and meet emerging global threats head-on.”
Urgency Amid US Policy Shift
The push to accelerate the UK’s arms procurement comes at a time of heightened concern across Europe, following former US President Donald Trump’s decision to withdraw military support for Ukraine. His call for European nations to take greater responsibility for their own security has intensified pressure on the UK and its allies to strengthen their defence capabilities independently.
In response, Prime Minister Sir Keir Starmer last week confirmed the increase in military spending, framing it as essential for national and regional security.
Defence Procurement Shake-Up
As part of the proposed reforms, ministers will review the existing “single source” contract rules that currently govern most defence deals. These contracts, which are often awarded without competition for national security reasons or due to limited suppliers, are now under scrutiny to ensure faster and more efficient delivery.
The Government is also looking to learn from the rapid procurement of arms for Ukraine, with plans to streamline processes and reduce delays in acquiring essential equipment, from warships to munitions.
Additionally, Ms Reeves aims to expand access to defence contracts for a broader range of companies, particularly small and medium-sized enterprises, to harness innovation within the UK’s industrial base.
The reforms are expected to provide a boost to the UK’s defence manufacturing sector, creating jobs and reinforcing supply chains at a critical time for global security.
