UK defence firms to be prioritised in new strategy as war game tests supply chain resilience and military readiness

2 December 2024, 07:55

UK defence firms will be prioritised for Government money under a new strategy
UK defence firms will be prioritised for Government money under a new strategy. Picture: Alamy
EJ Ward

By EJ Ward

The Ministry of Defence (MoD) will prioritise British defence firms for government investment under a new industrial strategy aimed at bolstering the UK’s security and economy.

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Defence Secretary John Healey is set to unveil the initiative on Monday, pledging to create jobs and enhance resilience across the sector.

The strategy, the first of its kind since Russia's invasion of Ukraine, will undergo consultation until the end of February 2025, with a final version expected in the first half of the year.

It is designed to ensure the Armed Forces remain well-equipped and ready to innovate “at a wartime pace,” while boosting UK economic growth and strengthening critical domestic supply chains in sectors such as semiconductors and steel.

Model airplanes on display at the BOEING stand  on day three of the Defence and Security Equipment International (DSEI)
Model airplanes on display at the BOEING stand on day three of the Defence and Security Equipment International (DSEI). Picture: Alamy

To support this effort, investors, trade unions, and other stakeholders will be invited to contribute to shaping the strategy. A statement of intent will be published on later today, outlining key goals and priorities.

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War Game Simulation to Test Supply Chain Resilience

As part of this push, a “first of its kind” war game will take place on Monday. The exercise will simulate how the defence industry and MoD could sustain front-line operations amidst intense fighting and supply chain disruptions.

Officials will aim to assess the resilience of the UK’s supply chains and identify vulnerabilities.

A STRIX Uncrewed Air System (UAS) from BAE Systems on day three of the Defence and Security Equipment International (DSEI)
A STRIX Uncrewed Air System (UAS) from BAE Systems on day three of the Defence and Security Equipment International (DSEI). Picture: Alamy

Speaking at the London Defence Conference, Mr Healey is expected to explain the sector’s potential as a driver of economic growth, saying:

“Our defence sector should be an engine for jobs and growth, strengthening our security and economy.

“That requires a defence industry that is better and more integrated – one that can keep our Armed Forces equipped, innovating at a wartime pace, and ahead of our adversaries.

“We will develop this new defence industrial strategy with industry, with innovators and with workers. We will mobilise the private sector to help face down global threats, direct more public investment to British businesses and create jobs and growth in every nation and region of the UK.

“National security is the foundation for national stability and growth. We are sending a signal to the market and to our adversaries: with a strong UK defence sector we will make Britain secure at home and strong abroad.”

A government spokesman said: “In a sign of the Government’s commitment to develop a faster, more resilient supply chain, a first-of-its-kind war game will begin [on Monday] with the UK defence industry.

“The war game will explore how industry and the MoD could sustain personnel on the frontline when faced with constant supply chain disruption and intense fighting.”

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Kevin Craven, chief executive of ADS Group, the trade association representing the defence and aerospace sectors, welcomed the Government’s commitment:

“The Government underlining the importance of the defence sector to the UK economy is hugely welcomed, particularly the sector’s inclusion as a high priority area for growth. ADS has consistently convened meaningful engagement between our members, MoD and wider stakeholders, and we look forward to continuing this in the latest phase.

“Industry greatly appreciates the opportunity for deep involvement with these processes. To deliver the right capability to support the UK’s ability to deter, it is pivotal that we continue to contribute to military planning activities.”

The last defence industrial strategy was published in 2021, but the conflict in Ukraine has since highlighted the need for more robust planning and supply chain security.

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