UK releases Strategic Defence Review

The UK has released the results of its long-awaited Strategic Defence Review which was begun last year. The UK Government has committed itself to spending 2.5% of Gross Domestic Product (GDP) by 2027, rising to 3% ‘in the next parliament’. In 2024/25 it will spend about £56.4 billion ($117.5 billion).

The results of the Review for the Navy, Army, Air Force, Space Domain and Nuclear deterrent have been covered widely. Not so much coverage has been given to the Review’s focus also on an Innovation-led force.

Today, says the Review, “much of the best innovation is found in the private sector, while the increasing prevalence of dual-use technologies has widened the net of potential suppliers that can contribute to Defence outcomes. Defence must embrace its role in seeding innovation and growth, rapidly adopting new technology to keep the Integrated Force at the forefront of warfare. In particular, Defence should build relationships with should be systematically accessed through a new Defence Investors’ Advisory Group whose membership includes venture capital and private equity investors, while private finance should be crowded in under new funding models. To set itself up for success internally, Defence should reorganise existing structures to create two distinct organisations under the National Armaments Director:

• A Defence Research and Evaluation organisation (potentially retaining the existing and well known Dstl brand), focused on enabling external early-stage research and providing a gateway to academia
• The new UK Defence Innovation (UKDI) organisation, announced in March 2025, and focused on harnessing commercial innovation, including dual-use technologies. UKDI will have a ringfenced annual budget of at least £400m ($833 million)”

The Strategic Defence Review can be downloaded here.