UK MoD announces new relationship with industry and the finance community

The UK’s industry, innovators and investors will benefit from a new partnership with the UK Ministry of Defence (UK MoD), making it easier and more attractive to do business with the Department than ever before, says the UK MoD.

This new partnership with business is designed to unlock innovation, create skilled jobs and boost investment. As part of this, the UK Secretary of State for Defence, John Healey MP, announced the new Defence ‘Tech Scaler’ initiative to drive innovations from idea to frontline.

The DASA Impact Report 2025 shows that Small and Medium Enterprises (SMEs) funded by the UK MoD have attracted nearly £600 million ($1.25 billion)  in private equity investment, supporting over 1,000 new jobs across the UK.

Speaking to business leaders, military personnel and private financiers, Healey called for an end to prejudice against defence investment and outlined how defence is driving economic growth, boosting British jobs and national security.

“The war in Ukraine confronts us with the truth that a military is only as strong as the industry which stands behind it,” said Healey. “I’m here today – at this most crucial time – to help forge a new partnership between industry, innovators and investors. National security is at the heart of our Plan for Change, and is essential for economic security, investor confidence and social stability.”

The UK Defence Secretary set out a package of measures to foster easier access to the defence market, including:

• Defence Tech Scaler: A new UK MoD Marketplace to drive innovations from idea to front line, with Enterprise Agreements for software, data and AI suppliers, to make it easier for innovative businesses, of all sizes, to do business with defence. As part of this, the Ministry of Defence has signed four Enterprise Agreements with firms including Adarga, Hadean, Oxford Dynamics and WhiteSpace – to a total value of up to £50 million ($104 million).
• Procurement Reform: A new segmented approach and radically faster targets for procurement in three areas: 1) major equipment – planes, tanks, ships – will go from an average of six to two years to get on contract; 2) upgrades to communications and weapons systems will go from an average of three to one year to get on contract, and 3) purchases of off-the-shelf kit – such as drones and software – will run in three-month cycles. For Armed Forces, this will mean they will get what they need when they need it, and for investors, it will mean a timelier return on investment.
• Defence Innovation: A new innovation organisation, UK Defence Innovation, will help deliver cutting-edge technology to the Armed Forces and will be up and running by July this year, with a ring-fenced budget of £400 million ($837 million) this financial year.
• Defence Industrial Joint Council, led by the Defence Secretary, will host its first meeting next month, and help co-ordinate public-private investment strategies – boosting investment into UK defence and delivering new jobs across Britain.

These measures come as a new report shows the value of the defence industry to the wider UK economy. The report found that funding from the MoD’s Defence and Security Accelerator (DASA) to 461 SMEs resulted in nearly £600 million ($1.25 billion) in private investment and created 1,842 new jobs across the UK. DASA continues to fund and support SMEs developing defence technology innovations, particularly dual-use technologies serving both civilian and military needs.

Last month, the British Government launched a new UK Defence and Economic Growth Task Force jointly chaired by the Chancellor of the Exchequer and the Secretary of State for Defence. The Task Force was due to meet for the first time this month to unlock the potential of the UK’s defence sector to drive long-term national growth, innovation, and economic resilience.