MOD Must Find £10.7bn in Efficiencies Over Four Years
The MOD must deliver £10.7 billion in efficiencies by 2028-29, with the annual target rising from £1.4 billion this year to £3.5 billion in the final year. For SMEs, this cuts both ways. Programmes that cannot demonstrate value for money are at risk of delay or cancellation, while pressure on primes to reduce costs tends to push work down the supply chain to cheaper, more agile suppliers. Watch for where MOD announces programme restructures or scope reductions, and consider how your offering positions on cost-effectiveness, not just capability.
Source →RFI Open: Modular Close Quarter Combat Training Systems
The MOD has issued a Request for Information and Preliminary Market Engagement notice for two modular Close Quarter Combat training systems for installation within existing training infrastructure. This is a live market engagement, meaning the procurement has not yet been shaped and supplier input can influence the requirement. Details are limited at this stage, but firms working in simulation, synthetic training environments, or modular infrastructure should note this is the moment to engage.
Source →UKDI Funding Transparency Data Published
UK Defence Innovation has published a transparency dataset covering UKDI funding. The signal is thin on detail, but this release points toward which areas and companies have received UKDI money, which is useful for mapping where MOD innovation spend is going and where white space may exist. Worth pulling the dataset to see which technology areas are being funded and whether your domain is under or over-represented.
Source →97% of UK Defence Firms Plan to Raise External Funding in Next 12 Months
New research by White & Case finds that 97% of UK defence companies and defence technology start-ups surveyed are likely to raise significant external funding over the next twelve months. The signal does not specify the survey size or methodology, so treat the headline figure with some caution. What it does indicate is that investor appetite in UK defence tech is active, and that competition for capital, and for the deals that attract it, is rising across the sector.
Source →Babcock and BAE Launch Apprenticeship Redirect Scheme for Defence SMEs
Babcock, BAE Systems and The 5% Club are launching the Apprenticeship Talent Bridge, channelling apprenticeship applicants rejected by the two primes toward SMEs across the defence supply chain, with the pilot running in the South West and North West from April 2027. For SMEs in those regions with a recruitment need in engineering or manufacturing, this is a direct supply of pre-screened candidates at no acquisition cost. Worth establishing contact with the scheme ahead of the April 2027 pilot start.
Source →Efficiency pressure on MOD budgets is building at the same time as capital and talent routes for defence SMEs are opening up, suggesting the next twelve months will reward firms that can demonstrate cost-credible propositions alongside genuine capability.