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HM GovernmentDefence

Raise defence spending with small firms by 50%

“We also committed to spend an additional £2.5bn with SMEs by summer 2028, a significant and ambitious increase of 50% in spend.”

In planMinistry of Defence SME action plan (GOV.UK), 21 Jul 2026
  2. In plan

Where it stands

The Ministry of Defence's SME action plan (21 July 2026) sets the target in yearly steps against a baseline of about £5bn a year: direct spend with SMEs of £1.48bn in 2026-27 and £2bn in 2027-28 (£1.24bn in 2024-25), and spend through the supply chain of £4.5bn and £5.5bn. The plan says the commitment was made with the Defence Industrial Strategy (September 2025). "Summer 2028" is read as by 31 August 2028. The card moves when the Ministry publishes its SME spend for 2026-27 and 2027-28.

What has happened

  1. Jul 2026The Ministry of Defence's SME action plan commits to spend an additional £2.5bn with SMEs by summer 2028, a 50% increase, Promised
  2. Jul 2026The same plan sets yearly targets: direct spend with SMEs of £1.48bn in 2026-27 and £2bn in 2027-28, and £4.5bn and £5.5bn through the supply chain, In plan evidence
  3. Aug 2028An extra £2.5bn a year with SMEs due by summer 2028, Deadline

More detail

Sources (2)
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