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Thursday 15 May 2025

UK unveils ‘engine for growth’ package for defence

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UK unveils ‘engine for growth’ package for defence
London Stock Exchange Group building, City of London. (William Barton/Shutterstock.com)

It follows the launch of the UK Defence and Economic Growth Task Force in April. 

 

A new ‘engine for growth’ package was unveiled by Secretary of State for Defence, John Healey, on 13 May. 

In a ceremony to mark a closer relationship between defence companies and investors, Healey became the first post-holder to close the London Stock Exchange (LSE). 

Aptly named, the ‘engine for growth’ package represents the government’s ambitions to increase the size and scale of the UK’s defence industrial base to catalyse economic growth. 

“I am here today – at this most crucial time – to help forge a new partnership between industry, innovators and investors”, Healey stated. 

The package is intended to “foster easier access to the defence market”, according to the 13 May press statement

Notably the package includes a new ‘Tech Scaler’ pilot initiative to drive innovations from idea to frontline. This will see the government leverage enterprise agreements for software, data and AI suppliers to facilitate a marketplace of innovations. 

The package also details a new procurement reform approach to radically reduce timeframes. This includes reducing contract timeframes for major equipment programmes from three to two years. Additionally, the acquisition of off-the-shelf technology will be conducted within three-month cycles, and upgrades to weapon systems will be completed in just one year, down from three.

Further supporting the UK defence industry, the package details the upcoming launch of the new UK Defence Innovation organisation, with a ringfenced GBP400 million budget. The organisation was first announced in March

In addition, starting in June, Healey will lead a new Defence Industrial Joint Council designed to coordinate public and private sector capital investment in defence. 

Overall, Healey outlined a holistic vision, acknowledging the defence industry’s contribution to “economic security, investor confidence and social stability”. 

The package follows the launch of the UK Defence and Economic Growth Task Force – led by the Confederation of British Industry – on 23 April. The task force aims to deliver recommendations to the government from industry and banks within the next two months. 

The ADS trade association is also contributing to the task force, which has received backing from UK Chancellor of the Exchequer Rachel Reeves as well as the Ministry of Defence. 

 

This article has been updated to better detail the Tech Scaler and UK procurement reforms. 


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Author Details
Benjamin Howe Defence Journalist Clarion Defence and Security
Benjamin is a UK-based Journalist working for Clarion Defence and Security, having previously worked as a Content and Community Manager on Clarion's digital products.

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