Government Unveils Plan to Accelerate Defence Innovation

New body to drive defence tech innovation, boosting British military and creating skilled jobs nationwide

By Patricia Cullen | Mar 04, 2025
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The UK government is set to launch a new defence innovation body aimed at accelerating the development of cutting-edge military technology. The initiative is part of a broader effort to boost defence capabilities and drive economic growth, as outlined in the government’s Plan for Change. The Chancellor, Defence Secretary, and Business Secretary confirmed the creation of the new organisation, which will collaborate with British tech and manufacturing firms to rapidly deliver advanced military technology to UK troops. The new body is expected to streamline the defence procurement process, allowing companies to quickly scale innovative prototypes into full-scale production.

Scheduled for launch at the Spring Statement, the new unit will simplify the Ministry of Defence’s (MOD) innovation system, offering a more agile and responsive approach to contracting and technology deployment. By working closely with UK businesses, the government aims to ensure that the UK’s Armed Forces are equipped with the latest technologies to address evolving global threats. On 28 February, senior government ministers met with leaders from 15 British defence firms at RAF Waddington in Lincolnshire to discuss the role of the new body. The station, known for its airborne intelligence aircraft, was chosen as the venue due to its connection to cutting-edge military technology. The meeting highlighted the importance of innovation in the UK’s defence sector and the need for faster integration of new technologies.

The new innovation body will facilitate quicker development cycles for military technology. It will use flexible contracting methods to enable companies to take ideas from initial prototype to large-scale manufacturing. The body will also support the growth of defence start-ups and scale-ups by increasing investment through initiatives like the National Security Strategic Investment Fund. The creation of the defence innovation unit is also expected to generate new jobs and support economic growth across the UK. In 2022, the defence sector supported over 430,000 jobs, with 68% of defence spending benefiting regions outside London and the Southeast. The government’s increased focus on defence innovation aims to ensure that this spending continues to support highly skilled jobs and apprenticeships across the country.

Last year, the government announced plans to increase defence spending to 2.5% of GDP by 2027, with further commitments to European defence collaboration. The new innovation body is seen as a key part of this effort, aiming to strengthen the UK’s technological capabilities while fostering a secure economic environment. The government’s drive to reform the UK’s defence sector is being called the most significant overhaul in more than 50 years. As part of this reform, the new body will accelerate the integration of new military technologies, such as AI and advanced surveillance systems, into the UK’s defence infrastructure. The unit will also work closely with the venture capital sector to attract private investment into defence technology. The lessons learned from the conflict in Ukraine, where technology has played a pivotal role in modern warfare, will help shape the innovation body’s approach. By integrating faster development processes and leveraging private sector expertise, the UK aims to stay ahead in the global defence race.

The new defence innovation body represents a bold step forward in the UK’s defence reform agenda. By streamlining technology development and fostering collaboration between government, industry, and the investment community, the UK government is set to deliver advanced military capabilities while supporting economic growth and job creation across the country. The initiative highlights the government’s commitment to ensuring the UK remains at the forefront of global defence technology.

Chancellor of the Exchequer, Rachel Reeves said:
“The world is less certain than it has been for a generation. History tells us that government and industry must rise to meet these moments together. We need to invest in sophisticated, innovative kit and get it into the hands of our fighting men and women. In the world we face, national security and economic growth are going to go hand in hand. High-skilled, well-paid jobs across the UK will both make our country safer and put pounds in people’s pockets.”

Science and Tech Secretary, Peter Kyle said:
“Britain’s science and research expertise has always played a role in keeping us safe, and still does: from inventions like radar and codebreaking machines in the 20th century, through to innovations around drone technology and cybersecurity, today. We are dedicated to making sure the UK tech sector has everything it needs to continue to thrive, and to keep playing a critical role in our national security.”

The UK government is set to launch a new defence innovation body aimed at accelerating the development of cutting-edge military technology. The initiative is part of a broader effort to boost defence capabilities and drive economic growth, as outlined in the government’s Plan for Change. The Chancellor, Defence Secretary, and Business Secretary confirmed the creation of the new organisation, which will collaborate with British tech and manufacturing firms to rapidly deliver advanced military technology to UK troops. The new body is expected to streamline the defence procurement process, allowing companies to quickly scale innovative prototypes into full-scale production.

Scheduled for launch at the Spring Statement, the new unit will simplify the Ministry of Defence’s (MOD) innovation system, offering a more agile and responsive approach to contracting and technology deployment. By working closely with UK businesses, the government aims to ensure that the UK’s Armed Forces are equipped with the latest technologies to address evolving global threats. On 28 February, senior government ministers met with leaders from 15 British defence firms at RAF Waddington in Lincolnshire to discuss the role of the new body. The station, known for its airborne intelligence aircraft, was chosen as the venue due to its connection to cutting-edge military technology. The meeting highlighted the importance of innovation in the UK’s defence sector and the need for faster integration of new technologies.

The new innovation body will facilitate quicker development cycles for military technology. It will use flexible contracting methods to enable companies to take ideas from initial prototype to large-scale manufacturing. The body will also support the growth of defence start-ups and scale-ups by increasing investment through initiatives like the National Security Strategic Investment Fund. The creation of the defence innovation unit is also expected to generate new jobs and support economic growth across the UK. In 2022, the defence sector supported over 430,000 jobs, with 68% of defence spending benefiting regions outside London and the Southeast. The government’s increased focus on defence innovation aims to ensure that this spending continues to support highly skilled jobs and apprenticeships across the country.

Patricia Cullen

Entrepreneur Staff

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