Luke Pollard, Minister for Defence Readiness and Industry, used the ADS Annual Dinner in London on 27 January to confirm delivery against key defence pledges and to set out next steps. He referenced the Strategic Defence Review, the Defence Industrial Strategy and the appointment of Rupert Pearce as National Armaments Director as the framework now guiding procurement, innovation and industry partnership. (gov.uk)
On funding, ministers restated the rise to at least 2.5% of GDP for defence from April 2027, with an ambition to reach 3% in the next Parliament. In parallel, the National Security Strategy sets a 5% of GDP objective for national security by 2035, combining core defence with wider resilience spending. (gov.uk)
The SDR, published on 2 June 2025, focuses on warfighting readiness, expanded munitions output and faster adoption of drones, autonomy and AI. Announcements alongside the review include new long‑range weapons procurement, investment in energetics plants and a multi‑year technology package for autonomous and directed‑energy systems. (gov.uk)
Pollard acknowledged frustration over the timing of the Defence Investment Plan, describing it as a line‑by‑line review of programmes worth hundreds of billions over the next decade and the department’s highest priority. The Defence Industrial Strategy separately commits the MOD to publish a five‑year forecast of planned procurements to improve demand signalling. (gov.uk)
Access for smaller firms is being reworked. On 27 January the ministry stood up a ‘single front door’-the Defence Office for Small Business Growth-intended to simplify bidding, reduce delays and coordinate support. The government has paired this with a pledge to lift cumulative SME spend to £7.5bn by May 2028. (gov.uk)
To widen the supplier base, a new £20m fund will offer accelerated contracts to early‑stage UK companies, with a ‘Dragon’s Den’ style event to seed ideas at pre‑procurement stage. The initiative runs alongside UK Defence Innovation’s programme work and is designed to bring non‑traditional vendors into defence faster. (gov.uk)
Innovation budgets and rules are being formalised. From 2026 the MOD will spend at least 10% of the equipment procurement budget on novel technologies, managed through UK Defence Innovation’s portfolio and Rapid Innovation Unit. UKDI’s ring‑fenced annual budget is set at a minimum of £400m. (assets.publishing.service.gov.uk)
The policy direction for primes is clear: move away from cost‑plus, deliver to schedule and design platforms with exportability in scope from day one. Alongside this, the government has created an Office of Defence Exports and reports 2025 as a record year for defence exports, signalling an expectation that UK designs compete internationally. (gov.uk)
Delivery is anchored by a refreshed leadership structure. Air Chief Marshal Sir Richard Knighton became Chief of the Defence Staff in September 2025. Service chiefs are General Sir Roly Walker (Army), General Sir Gwyn Jenkins (Royal Navy) and Air Chief Marshal Harv Smyth (RAF). (gov.uk)
What this means for programme teams and suppliers now is practical. Prepare for the five‑year procurement forecast, engage the SME Office as it scales, align proposals to UKDI priorities and the 10% novel‑tech ringfence, and track the Defence Investment Plan, which ministers say will put defence on a sustainable footing. (assets.publishing.service.gov.uk)