Government launches new support for SMEs benefitting from defence investment

Thousands of small businesses will receive new support to ensure they benefit from the decision to increase defence spending to 2.5% of GDP, the Government has confirmed.

This investment aims to protect UK citizens from threats at home, but also create a secure and stable environment in which businesses can thrive.

The Government has also announced plans to launch a new hub to provide small and medium enterprises (SMEs) with better access to the defence supply chain and committed to set direct SME spending targets for the Ministry of Defence by June this year.

This aims to help create new jobs and boost the economy of small towns and suburbs in the UK.

It follows the Government’s ongoing uplift in defence spending to 2.5% of GDP by April 2027, with a commitment to hit 3% in the next Parliament.

The move is designed to boost the resilience of the UK’s defence industrial base and to seize the full power of rapid technological change as part of the Government’s forthcoming Defence Industrial Strategy.

Prime Minister, Keir Starmer, said: “The UK’s defence industry is a source of national pride. It supports hundreds of thousands of good jobs up and down the country and represents British manufacturing at its best.

“Increasing our investment in defence is not only bolstering our national security, it is an opportunity to put more money into working people’s pockets and boost economic growth.