(Commonwealth_Europe) The UK government is taking a fresh approach to defense spending, one that’s designed not just to keep the country safe but to make sure the money it spends also creates jobs, builds skills, and strengthens communities at home.
Under a new “Back British” plan, announced by Defence Minister Luke Pollard, foreign companies that win UK defense contracts will have to invest in Britain in return. That could mean setting up production facilities here, hiring British workers, working with local suppliers, or helping train and upskill people across the country. The goal is simple: when the UK spends on defense, Britain should benefit.
Speaking to hundreds of small and medium-sized business owners at a defense summit in Manchester, Pollard said it was time to make defense spending a real driver of national growth. “Small businesses are the backbone of our economy,” he said. “We’re increasing defense spending and making sure more of that goes to UK-based firms. And if we do buy from foreign companies, we’ll make sure British businesses still see the benefits through jobs, skills, and investment. This is about strengthening our Armed Forces while turning defense into an engine for growth.”
To shape the new policy, the government is launching a 12-week consultation with the defense sector. It will work closely with industry leaders, defense experts, and small firms to design a system that supports British companies but still allows the UK to collaborate effectively with its international partners.
Small businesses are expected to gain the most from this shift. The government has already pledged to increase spending with SMEs by £2.5 billion by 2028, acknowledging how vital they are for innovation, technology development, and job creation. A new Defense Office for Small Business Growth will open next year to give smaller firms more opportunities and customized support.
The UK’s new National Armaments Director, Rupert Pearce, said the initiative shows a strong commitment to helping British industry thrive. “The ‘Back British’ consultation is about making sure defense investment creates opportunities for UK businesses everywhere,” he said. “It’s about ensuring our industrial base is strong and our Armed Forces stay ready.”
After the summit, Pollard and Pearce toured several key defense and technology hubs in the Northwest, including BAE Systems’ factories in Samlesbury and Warton, where F-35 fighter jets and Typhoon aircraft are built. They also stopped by the University of Central Lancashire’s Innovation Centre to meet students, entrepreneurs, and defense suppliers working on next-generation air and space technologies.
Pollard also announced a new program to support tech start-ups in the Northwest, led by the National Cyber Force. The initiative will help young cyber and defense companies grow by giving them mentorship, workspace, and expert training. Four start-ups have already been selected for the “North West Cyber Accelerate” program, which will be based in Manchester, Lancaster, and Preston.
Industry leaders across the board have praised the new plan. Kevin Craven, the Chief Executive of ADS, referred to offset agreements as a “powerful tool” that can assist the Armed Forces in acquiring necessary equipment, while also creating opportunities for UK businesses. “These kinds of policies can keep our industrial base strong, our workforce secure, and deliver real value for taxpayers,” he said.
Andrew Kinniburgh, Director-General of Make UK Defence, said the consultation was a “major win for UK industry.” He pointed out that many other countries already have similar policies and have seen great results. “Offset can boost economic growth, create high-quality jobs, and attract new investment,” he said. “It’s proof the government is serious about backing British business.”
Even big global defense companies are welcoming the change. Julian Moore, Managing Director of Boeing UK & Ireland, said his company already runs successful offset programs around the world and looks forward to working with the UK government on this one. “We’re pleased to see the UK moving in this direction,” he said. “It’s a great opportunity to grow skills, technology, and industry here in Britain.”
The message from government and industry couldn’t be clearer: Britain’s defense spending should do more than buy equipment. It should build opportunity, create jobs, nurture innovation, and keep the country strong in every sense of the word.
