UK MOD Targets £2.5B Increase in Spending with British Firms and SMEs

At the 4 November 2026 JOSCAR Live conference in Oxford, UK Ministry of Defence officials and industry leaders discussed how supplier access and supply-chain capability contribute to defence readiness. The priorities highlighted included improving opportunities for small and medium-sized enterprises (SMEs), strengthening supplier assurance and building resilience across the defence supply chain. The discussion places SME participation within a wider readiness and industrial-capability context: a diverse and capable supplier base can support the skills, products and services needed for future defence requirements.

The UK Ministry of Defence (MOD) aims to increase spending with British firms and SMEs by £2.5 billion by summer 2028, in addition to a £5 billion baseline. This is a spending target, not an announced contract, solicitation, funding award or guarantee that any particular supplier will receive work. The target nevertheless signals potential growth in demand reaching British businesses across the defence supply chain. For contractors, the distinction matters: it is an indication of policy and purchasing direction, rather than a defined procurement opportunity with a published scope, timetable or evaluation criteria.

The MOD plans procurement simplification and support measures, and suppliers were directed toward the MOD’s SME Action Plan and Business Growth Service as resources relevant to the measures discussed. SMEs can use these channels to understand available support and prepare for engagement with defence buyers. The source also identifies JOSCAR pre-qualification as an option for presenting supplier information to buyers. Pre-qualification can help suppliers make their capabilities and assurance information visible, but it should not be treated as a substitute for a specific tender response or evidence of a procurement commitment.

The announcement has practical implications for both smaller suppliers and primes. SMEs may wish to review their positioning, capability information and assurance documentation against the requirements of the buyers and supply chains they seek to serve. Prime contractors and procurement teams should account for SME access and supplier assurance as they plan supply chains in light of the MOD’s stated spending ambition. At the conference, Dillon Padraig Harmon, Chief Operations Officer of Needles & Pins Aerospace, emphasized the connection between collaboration and long-term capability: “By working closely with industry, education providers and government, we can help develop the skills and services needed to support future defence capability and long-term economic growth.” The statement reflects the event’s broader focus on developing supplier capacity, while the spending target remains the clearest quantified signal for industry.

• The MOD aims to increase spending with British firms and SMEs by £2.5 billion by summer 2028, in addition to a £5 billion baseline.
• The figure is a spending target; it does not identify a specific procurement, contract award or guaranteed supplier revenue.
• Conference priorities included SME access, supplier assurance and supply-chain resilience as elements of defence readiness.
• The MOD plans procurement simplification and support measures, but the source does not specify individual procurements or their schedules.
• SMEs can consult the MOD’s SME Action Plan and Business Growth Service for the support measures referenced at the event.
• Suppliers may consider JOSCAR pre-qualification to present supplier information to defence buyers; it does not guarantee selection or award.
• Prime contractors and procurement teams should consider SME participation and assurance requirements in supply-chain planning.
• Dillon Padraig Harmon of Needles & Pins Aerospace called for collaboration among industry, education providers and government to develop skills and services for future defence capability and economic growth.