The report sets the stage for the upcoming Defence Industrial Strategy. 

The Defence & Economic Growth Taskforce, set up in May, released its report detailing 33 recommendations to the UK Government on 8 July. 

Its headline recommendations include strengthening demand signals to industry, embedding a multi-sector ‘Team UK’ mindset and establishing regional defence growth deals. 

It also recommends using advanced analytics to identify dual-use opportunities by reviewing patents and intellectual property used in other sectors, a key priority outlined in the Strategic Defence Review (SDR). 

The Defence & Economic Growth Taskforce aims to identify opportunities to drive UK growth and productivity through investments in UK defence capability and production. The taskforce brought together experts, producing the aforementioned report. 

This follows the announcement of an ‘engine for growth’ package by Secretary of State for Defence, John Healey, on 13 May, where he emphasised the importance of defence to the UK economy. 

Using defence spending as “an economic force multiplier”, improving the attractiveness of defence companies, mobilising private sector investment, and attracting finance to build supply chain resilience, were outlined as primary aims of the report. 

The UK Government has already started work on three of the recommendations: establishing an SME Hub to support new market entrants, moving defence exports within the Ministry of Defence, and supporting new regional defence growth deals.  

Regarding the latter, German company Helsing has just announced it is establishing a new manufacturing site in Plymouth. 

Aside from these, big themes among the recommendations include procurement reform, increasing industry’s access to international markets, improved information sharing, and fostering innovation and skills, plus more targeted support for smaller firms. 

Notably, the report calls for increased collaboration with small Ukrainian firms “to capture learnings from rapid innovation cycles”. 

The report’s authors say it builds upon the SDR and the Spending Review recently published by HM Treasury.  

In addition, they argue that it lays the groundwork for “the forthcoming Defence Industrial Strategy, in which [the UK] Government is expected to set out further details on plans to strengthen the defence industrial base”.  

Published by the Confederation of British Industry (CBI) and the Oliver Wyman consultancy, the report was supported by ADS Group – the defence and aerospace trade association – and PA Consulting.  

The taskforce is co-chaired by the Chancellor of the Exchequer, Rachel Reeves, and John Healey; however, the report is not an explicit statement of UK Government policy. 

DSEI Gateway News is part of DSEI UK and the broader Clarion Defence portfolio. 
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