The UK Ministry of Defence (MoD) has published a new Small and Medium-sized Enterprise (SME) Action Plan aimed at increasing opportunities for smaller businesses across the defence sector, with a commitment to raise annual SME spending by £2.5 billion by summer 2028. The strategy forms part of the government’s wider effort to strengthen the UK’s defence industrial base while improving access to procurement opportunities for innovative suppliers.
The Action Plan will be led by the Defence Office for Small Business Growth (DOSBG), which has been established to reduce barriers to entry for SMEs and improve engagement between industry and the Ministry of Defence. However, reports indicate the office is not expected to become fully operational until later this year.
Building on existing commitments
Many of the initiatives outlined in the document build upon measures previously announced by the government. These include the target to increase defence spending with SMEs by £2.5 billion, expansion of business support through the Business Growth Service and wider financial backing for UK businesses.
The Action Plan also aligns with the Defence Industrial Strategy and Defence Investment Plan, both of which identify SMEs as essential contributors to innovation, resilience and supply chain capacity across the UK’s defence sector.
Among the new measures, the MoD says it has begun reducing unnecessary administrative burdens during the procurement process, including removing repeated information requests during competitive bidding.
The department is also introducing a Strategic Partners and Suppliers pledge designed to encourage greater collaboration between prime contractors and SMEs. Improved reporting tools will monitor SME participation and spending across defence programmes to help identify where further support is required.
Improving access for smaller suppliers
The Action Plan outlines further work to make defence procurement more accessible. This includes the development of a publicly available guide explaining the various entry points, procurement portals and marketplaces available to SMEs seeking defence contracts.
In addition, the MoD has committed to increasing the visibility of future procurement opportunities, although specific details on how this will be delivered have yet to be announced.
The publication reflects a growing recognition of the role smaller businesses play in delivering innovation and resilience across the defence supply chain. While much of the Action Plan consolidates existing government commitments, its success will ultimately depend on how effectively the Defence Office for Small Business Growth implements the proposed reforms and whether they translate into improved access to defence contracts for UK SMEs.
