# 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.”
>
> — HM Government; Ministry of Defence SME action plan (GOV.UK), 21 July 2026

- **Status:** In plan
- **Status ladder:** Promised → In plan → Legislated → Funded → Delivering → Delivered
- **Policy area:** [Defence](https://ledgergov.uk/promises/area/defence)
- **Speaker:** [HM Government](https://ledgergov.uk/actor/hm-government)
- **Made on:** 21 July 2026
- **Where:** Ministry of Defence SME action plan (GOV.UK)
- **Deadline:** 31 August 2028
- **Cost a year:** No costing published
- **Who it affects:** SMEs (small and medium-sized enterprises), through direct contracts and the supply chain
- **When:** By summer 2028
- **Paid for by:** Not stated when it was announced
- **Quote source:** https://www.gov.uk/government/publications/mod-small-and-medium-sized-enterprise-sme-action-plan/ministry-of-defences-small-and-medium-sized-enterprise-sme-action-plan (checked word for word on 12 October 2026; Open Government Licence v3.0)
- **Last updated:** 12 October 2026
- **Card:** https://ledgergov.uk/promise/uk-mod-sme-spend-2028

## 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.

## Timeline

- 21 July 2026, Promised: The Ministry of Defence's SME action plan commits to spend an additional £2.5bn with SMEs by summer 2028, a 50% increase
- 21 July 2026, In plan: The 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 ([evidence](https://www.gov.uk/government/publications/mod-small-and-medium-sized-enterprise-sme-action-plan/ministry-of-defences-small-and-medium-sized-enterprise-sme-action-plan))
- 31 August 2028, Deadline (to come): An extra £2.5bn a year with SMEs due by summer 2028

## Sources

- [Ministry of Defence: SME action plan, 21 Jul 2026](https://www.gov.uk/government/publications/mod-small-and-medium-sized-enterprise-sme-action-plan/ministry-of-defences-small-and-medium-sized-enterprise-sme-action-plan)
- [Ministry of Defence press release, 10 Oct 2026: Faster front-line delivery with new Testing and Evaluation programme](https://www.gov.uk/government/news/faster-front-line-delivery-with-new-testing-and-evaluation-programme)

## Checks

- Checked by Pavel Guzhikov and 1 independent editor on 12 October 2026.

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