The Ministry of Defence has confirmed that work is underway on a new Small and Medium-sized Enterprise (SME) Action Plan, but its publication will be delayed until after the Defence Investment Plan is completed.
In response to a series of parliamentary questions, Defence Minister Luke Pollard said the department remains committed to publishing an annual plan, describing it as “a key element of Defence’s work to improve opportunities for SMEs.”
He confirmed that development of the plan is being led by officials within the Defence Office for Small Business Growth (OSBG), stating that “work led by a senior civil servant and civil servants from [OSBG] are responsible for developing the Plan and its implementation.”
The forthcoming plan is expected to focus on procurement reform and industrial policy, with Pollard noting it will set out “key priorities on procurement policy and strategy, aligned with the Strategic Defence Review and the Defence Industrial Strategy.”
However, ministers indicated that publication is dependent on wider defence planning, with Pollard stating that “once work on the Defence Investment Plan has concluded the plan will be published.”
The government pointed to a number of existing measures intended to support smaller firms, including “a new £20 million fund offering accelerated contracts to innovative UK startups with little previous MOD engagement,” as well as a target to increase defence spending with SMEs by £2.5 billion by May 2028.
Pollard also said the department is engaging directly with industry to shape the plan, noting that “the OSBG is engaged with SMEs to shape its delivery and ensure it reflects the practical experiences of SMEs seeking to do business with Defence.” He added that the combined measures are intended to improve support for SMEs compared to previous years, as the department seeks to broaden participation in defence procurement.
I came here for the comments. TBH I’m actually not surprised the DIP is delayed. The way wars would be fought now is changing faster than ever and it’s probably a good thing that while this is needed ASAP, the government is actually taking everything into account. I imagine very few people commenting know what is needed and I would rather this is considered very carefully and we don’t just splurge a load of money on something that will be obsolete very quickly. I don’t envy the people making these decisions.
Trouble is, by your thinking the DIP will never be published and the government would be able to delay indefinitely
Doubtful. Maybe show some positivity.
I know how to organise both a corporate plan and a capital programme and it does not take nearly two years, nor does it take three postponements. What we have is incompitence.
It’s 6 months overdue, any ‘positivity’ has vanished
Just as long as answers about spending and investment don’t transition from “waiting on the publication of the DIP’ to “waiting on the publication of the new Small and Medium-sized Enterprise (SME) Action Plan.” Wouldn’t surprise me much though if it did.
That likely how its going to go, delayed or dragged out. Not their fault etc etc, but more delay means no kit orders and we need some orders asp if we are ever get kit in service within a few years at best.
So An “action Plan” being planned for after the DIP which is still being planned. 🤔🫣