New Defence Office Aims to Transform Small Business Access to Government Contracts
The UK Government has launched a dedicated new team designed to help small and medium-sized enterprises (SMEs) win a greater share of defence contracts. The newly established Defence Office for Small Business Growth (OfSBG) represents a strategic move to make defence procurement an engine for economic growth across the nation.
Boosting Defence Spending with SMEs
Luke Pollard, the Minister for Defence Readiness and Industry, announced the initiative, describing small businesses as the backbone of UK defence. The OfSBG will be staffed by policy and commercial experts who will provide targeted support to UK firms bidding for defence contracts. This effort aims to reverse the recent decline in Ministry of Defence (MOD) spending with SMEs and deliver on the government's pledge to increase such expenditure by 50% by 2028.
Currently, the MOD spends approximately £5 billion annually with small businesses. The ambitious target is to raise this figure to £7.5 billion within the next few years. That's a huge increase that will create lots of jobs, lots of growth, and make Britain stronger, Mr Pollard stated.
Simplifying Processes and Building Resilience
The core mission of the OfSBG is to simplify and accelerate procurement processes, making it easier for SMEs to interact with the defence sector. The office will act as a central hub, offering advice, encouraging private investment, and helping firms bring their products to market more swiftly.
Mr Pollard emphasised the initiative's importance in the current global security climate. We know we live in a new era of threat, he said, highlighting the need for greater resilience in the UK's industrial supply chain. An army, a military, is only as strong as the industry that sits behind it. By directing more of the increasing defence budget towards British companies, both large and small, the government aims to strengthen national security while fostering domestic economic growth.
National Impact and Scottish Opportunities
The benefits are expected to be felt across the entire United Kingdom. Ahead of the official announcement, Mr Pollard visited the National Manufacturing Institute Scotland in Renfrewshire and Viper::Blast in Aberdour, Fife, showcasing innovative Scottish technology firms.
Scottish Secretary Douglas Alexander welcomed the move, noting it is great news for Scottish businesses, workers and the economy. Defence is already a significant sector in Scotland, with MOD spending exceeding £2 billion a year and supporting nearly 12,000 industry jobs. The new office, coupled with the pledged £2.5 billion increase in SME spending by 2028, is poised to further transform the sector and leverage Scotland's world-class industrial expertise.
Initial Rollout and Future Vision
The OfSBG will initially support 30 SMEs from carefully selected sectors through a public-facing web portal and contact centre. These sectors will range from aeronautical engineering to cybersecurity, with participating firms located across the UK, from the south of England to Scotland, Wales, and Northern Ireland.
This initiative marks the start of a concerted effort to make the UK defence sector more accessible and supportive of small businesses, ultimately driving job creation, innovation, and national strength for years to come.
