Backing British business: reforms to champion UK defence companies on the world stage
Source: gov.uk (2025-09-07)

Defence Industrial Strategy will unveil reforms to champion British defence businesses to increase export sales through cutting red tape and expanded financial backing.

- Red tape cut to shorten the time it takes for British businesses to complete international export deals.
- Work to expand financial backing for UK defence firms seek international exports.
- New Defence Industrial Strategy will make the UK the best place in the world to start and grow a defence firm.
British businesses will be championed on the global stage to increase export sales, under reforms taking place in the Defence Industrial Strategy, due for launch later today.

In a significant change to boost exports, UK firms will be able to apply for export licences whilst they are bidding for international work, rather than having to wait for the process to conclude.

This move will help UK companies win significant work on the international stage, shortening order timescales and giving greater confidence to overseas customers that UK companies are a reliable choice.

The Government is also taking steps to expand UK Export Finance (UKEF)’s ability to back major defence contracts, legislating to increase the maximum size of UKEF’s financial portfolio.

International defence contracts are increasingly demanding state-backed financing to be fulfilled. To ensure the UK remains a highly competitive partner of choice for international defence contracts, the government will bring forward legislation to expand UKEF’s financial capacity and will consider a new strategic approach to defence financing for larger, multi-billion-pound deals.

Defence Secretary John Healey MP said:

We’re backing British businesses to win on the international stage by cutting red tape for major export campaigns.

Ensuring our firms can bid for international work with greater confidence is an important change that will make defence an engine for growth and good jobs for people across the nation.

Kevin Craven, CEO of ADS, representing 1600 businesses in aerospace, defence, security and space, said:

Exports from the UK’s defence and security sectors have doubled in the last decade. UK-made capability is in demand, and any way that government and industry can work together to speed up this process is welcomed. The ability for businesses large and small to be able to secure licenses during the tender process means that production can begin sooner, workers can be retained, and ultimately, the UK’s competitive advantage can be secured.

On behalf of our over 1,000 industry members operating in this space, we look forward to partnering with the government to ensure that the UK’s rigorous export licensing systems are maintained while business thrives within that system.

The UK’s defence industry is a global powerhouse showcasing hundreds of thousands of highly skilled workers and the very latest cutting-edge technologies. The reforms come after the UK recently announced a deal to export at least five Type 26 frigates to Norway in a £10 billion boost to the economy, supporting over 4,000 British jobs for years to come.

UKEF support has already been a critical enabler for UK defence exports and the work to expand their financial capacity will help boost further opportunities for British companies to secure international orders.

Defence exports are now worth over £14.5 billion annually and growing – making Britain the world’s second-largest arms exporter after the United States, supporting work to make defence an engine for economic growth and delivering on the Plan for Change.

The Defence Industrial Strategy is the final sector plan of the eight growth driving sectors identified in the Government’s Modern Industrial Strategy to be published, and the full collection of sector plans can be found here (https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fpublications%2Findustrial-strategy-sector-plans%2Fsector-plans&data=05%7C02%7CSimon.Goodwin111%40mod.gov.uk%7C18c522d553864a76134c08ddeedddc5b%7Cbe7760ed5953484bae95d0a16dfa09e5%7C0%7C0%7C638929358944580708%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=hLohCQssjW8xA3NSFZie46Y5oMOBzo2KXaW9rd%2FNGAU%3D&reserved=0).