Babcock and University of Exeter call for more SME defence support

Babcock International and the University of Exeter have published a new report calling for wide ranging reforms to enable small and medium sized enterprises (SME) to play a greater role in supporting UK defence capability and resilience.

The report, The Next Line of Defence: Unlocking SME Potential in UK Defence from Policy to Practice, positions SMEs as central to the UK’s ambition to become a leading, technology enabled defence power by 2035. It argues that current structures limit SME participation and, by extension, constrain innovation, sovereign capability and wider economic benefit.

Despite their recognised value, SMEs currently account for only around four percent of UK defence expenditure. According to the report, this under representation not only weakens defence capability but also restricts job creation and regional growth that could be generated through a broader and more inclusive defence supply base.

Priority Areas

The study identifies six priority areas for reform. These include simplifying procurement processes, recasting prime contractors from gatekeepers to partners, stabilising funding through patient finance and private capital, reframing defence careers to build a sustainable skills pipeline, modernising digital and physical infrastructure, and protecting sovereign capability.

Central to the recommendations is a call for more risk proportionate contracting and procurement models that are adapted to SME scale. The report argues that faster routes to market are needed without compromising standards, alongside a cultural shift towards deeper collaboration between government, primes and smaller suppliers.

The publication comes at a time of heightened focus on defence readiness and innovation, with the report framing SMEs as vital to delivering agility and technological advantage in areas such as artificial intelligence, cyber and autonomous systems.

10 Point Charter

Alongside the report, it was revealed that a new industry led 10 point SME Charter is expected to be launched in the coming months. The charter is intended to provide a practical framework to drive consistency in SME engagement across the defence sector through voluntary industry adoption.

Donna Sinnick, Chief Delivery Officer at Babcock, said: “Babcock is wholly invested in working with SMEs across the defence enterprise and is already helping to unlock their true potential.

“In the time critical defence environment, SMEs can deliver niche technologies fast. They are agile and essential to building sovereign resilience in areas like AI, cyber and autonomy. This report provides a positive picture of the conditions that are already being created but it’s also a reminder that we still have to collectively do even more. This is both a security and economic imperative.”

Defence Ramp-Up

Professor Harry Pitts, Deputy Director of the Centre for the Public Understanding of Defence and Security at the University of Exeter, added: “The threats faced by the UK and its allies demand rapid rearmament and defence innovation at a significantly ramped-up pace and scale, and to gain the upper hand against unpredictable and unconventional adversaries demands advantage in the technological cutting-edge.

“A new policy landscape promises to remove barriers so that Britain’s SMEs can help UK Defence meet both of these challenges. But to fully unlock their agility and expertise and enable more small businesses to pivot to defence opportunities, a joint effort across industry and Government is required to put policy into practice.

“This research identifies the structural obstacles that must be dismantled and the practical action that must be taken in order to strengthen our national security through a more resilient defence industrial ecosystem – from the smallest start-ups to the largest primes.”

Pic: Donna Sinnick, Chief Delivery Officer, Babcock and Professor Harry Pitts, Deputy Director of the Centre for the Public Understanding of Defence and Security, University of Exeter with SME report

 

About Defence Buyer

Defence Buyer is the leading authority in global defence procurement and technology content, delivering expert news, in-depth articles, exclusive interviews, and industry insights across print, digital, and event platforms. Published 4 times a year, the magazine is a trusted resource for professionals seeking updates and analysis on the latest developments in the defence and security sector.

To submit an article, or for sponsorship opportunities, please contact our team below.

Rebecca Spayne Picture

Rebecca Spayne

Group Managing Editor

Mason Ponti Picture

Mason Ponti

Sales Manager

Afua Akoto Picture

Afua Akoto

Marketing Manager

Read the Latest Issue

June Issue 2026 - defencebuyer.com

June Issue 2026

Error, group does not exist! Check your syntax! (ID: 8)
Error, group does not exist! Check your syntax! (ID: 5)

Follow us on LinkedIn

Follow us on LinkedIn

Click Here

Advertise here

Reach decision makers and amplify your marketing

Advertise here

Click Here

Related News

Counter UAS frameworks - NATO - defencebuyer.com

NSPA Establishes Counter-UAS Framework

The NATO Support and Procurement Agency (NSPA) has established five framework contracts for tactical and deployable Counter-UAS
Drone Major - defencebuyer.com

Drone Major partners with Contract Finder Pro

the world’s leading independent drone company, Drone Major, has announced a groundbreaking strategic partnership…
MoD SMe Action Plan - defencebuyer.com

UK MoD Unveils SME Action Plan

The UK Ministry of Defence (MoD) has published a new Small and Medium-sized Enterprise (SME) Action Plan aimed…
THEON reports strong growth - defencebuyer.com

THEON Reports Strong First-Half Growth

THEON has reported strong first-half 2026 results, driven by growing demand for its defence optronics portfolio, strategic acquisitions
Iran denies US negotiations - defencebuyer.com

Iran Denies Reports of Renewed Negotiations With United States

Iran has dismissed reports that it is engaged in negotiations with the United States, with officials insisting no direct talks are currently
Ministry of Defence - GCAP - defencebuyer.com

Canada becomes first Observer Nation for GCAP

UK, Italy  and Japan welcome Canada to the Global Combat Air Programme (GCAP) as the first Observer Nation.   
Us Navy AI strategy - defencebuyer.com

‘Weaponizing’ Data and AI in New Strategy

The Department of the Navy announced this month the formal approval of its Strategy to Weaponize Data and Artificial Intelligence (AI).
Bliksem EXO Consortium - defencebuyer.com

Bliksem EXO Consortium Intention

European defence companies sign Letter of Intent to establish the Bliksem EXO Consortium: Europe’s exo-atmospheric interceptor..
Rheinmatall and Space Norway - defencebuyer.com

Rheinmetall and Space Norway Collaborate

Rheinmetall AG and Space Norway AS have signed a Memorandum of Understanding (MoU) to further expand their cooperation…
UK awards £3.16m contracts for drone interceptors - defencebuyer.com

UK awards £3.16m contracts for drone interceptors

The UK Ministry of Defence (MOD) has awarded contracts worth £3.16 million to three British companies to develop a new generation …
Scroll to Top