Joint Statement on the Defence Investment Plan and defence spending by SMI, Make UK Defence, techUK, ADS, and TheCityUK

As the UK’s leading voices providing support across the defence enterprise, we are deeply concerned about the current state of the long-awaited Defence Investment Plan and the reportedly marginal increase in defence spending that has been proposed as part of this plan. Decisions on defence investment are inevitably challenging, but these pressures make it more important, not less, that the Plan is credible.

We collectively and enthusiastically back the government’s central mission to kickstart economic growth, and the key role UK defence can play to deliver this. We have also warmly welcomed the MOD’s Strategic Defence Review and Defence Industrial Strategy as positive steps in the right direction towards backing UK based businesses, investing in cutting edge new technologies, supporting SMEs and strengthening warfighting readiness.

We have collectively made clear that we are deeply concerned that the sense of urgency recently presented on defence is not being met with tangible action inside certain parts of the UK Government. The UK’s Armed Forces are only as strong as the industry that sits behind them.

Whilst the Prime Minister has warned that “our intelligence assessment and the assessment of other countries in NATO that there could be an attack by Russia on NATO as soon as 2030”, we still have no Defence Investment Plan and HM Treasury has proposed a minimal increase to existing spending plans. The problem is not only the timing of this publication; it is that the scale and phasing of investment are insufficient for the challenges we face. There are difficult fiscal choices to make, but this – UK national security – is a decision too important to get wrong.

Without the Defence Investment Plan and a meaningful increase in defence spending, we will risk placing our national and economic security at risk against a growing and diversifying range of threats. As John Healey said in his resignation letter, the MOD should not be “forced to make decisions that would reduce the readiness of our Forces and increase the risk to personnel on operations and could make the country less safe.”

We also know from our collective membership that delays to the publication of the Defence Investment Plan are having a crippling impact on business confidence in the sector, with investments being held up, hiring plans put on hold, and in the worst cases, businesses at risk of going bust – a problem particularly affecting SMEs who lack the capital to sustain themselves through this challenging period. This also comes against the backdrop of ongoing increases in business costs and a fundamental lack of cashflow in the sector. The former Defence Secretary John Healey’s resignation, and the reasons for it, compounds that damage.

We urge the government to demonstrate the leadership our country desperately needs at this crucial time in our history by delivering a meaningful acceleration of defence investment as soon as possible and ensure the Defence Investment Plan is published in full before next month’s NATO Summit, setting out a clear pathway to meet our NATO commitments, with early decisions that give industry confidence. Failing to do so risks not just our country’s security but would also amount to entirely avoidable harm to the UK economy.

Joint Statement Signatories

Society of Maritime Industries (SMI) | Make UK Defence | techUK | ADS | TheCityUK

Notes to Editors

About the Society of Maritime Industries (SMI)

The Society of Maritime Industries (SMI) is the UK’s leading trade association for the maritime technology and services sector. SMI represents companies across the breadth of the maritime industry — from defence and security to digital technology, marine science, ports and terminals, and autonomous systems. Through its specialist Councils and working groups, SMI provides a unified voice for UK maritime on issues of national and international significance, working closely with government, the MOD, and key partners to shape policy, drive investment, and advance the competitiveness of British maritime industry.

SMI’s Maritime Defence and Security Group represents companies operating across the full spectrum of UK naval and defence capability, from prime contractors and platform builders to SMEs supplying specialist technologies, systems integration, and through-life support.

Press Enquiries

Katie Lafferty- Society of Maritime Industries

Katie.Lafferty(at)maritimeindustries.org