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 a ‘Tech Scaler’ pilot initiative which will see the government leverage enterprise agreements to host and better facilitate a marketplace of innovations. 

Ongoing procurement reforms, born into the package, are intended to “radically” reduce procurement timescales. Aiming to cut times for major equipment orders by two thirds, and purchase off-the-shelf equipment in three-month cycles, the notice indicates. 

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. 

These initiatives will be supported by the Ministry of Defence’s (MoD) Defence Innovation organisation, which the notice says will be operational from July.  

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 MoD. 

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