British industry warns ‘we are not yet on a war footing’

The Defence Select Committee has heard evidence from leading defence industry representatives as part of its routine inquiry into the UK’s contribution to European security.

The session, held on 4 March 2025, examined whether the UK’s defence industrial base is keeping pace with increasing geopolitical threats and how procurement processes could be improved.

During the session, industry leaders warned that Britain’s defence industry is not yet on a ‘war footing’, with slow procurement processes and a lack of government orders limiting the UK’s ability to scale up military production.

“We Are Not Yet on a War Footing”

Andrew Kinniburgh, Director General of Make UK Defence, was blunt in his assessment of the state of Britain’s defence industry, warning that the UK is not ready for large-scale conflict.

“It has a huge deterrent effect. You could argue that it is almost as important as having the armed forces, having a really strong back room in terms of the defence supply chain. In the UK, it is absolutely key. We are not yet on a war footing in the UK with the defence supply chain. We need to move quickly to try to get there.”

He criticised the lack of surge capacity in the defence sector, calling for a faster and more flexible approach to military procurement.

“Without Industry, There Is No Defence”

Kevin Craven, Chief Executive of ADS, echoed these concerns, citing NATO Secretary General Jens Stoltenberg’s warning that industry is fundamental to national security.

“Without industry, there is no defence, no deterrence and no security,” he said, adding that the UK defence sector employs 164,000 people directly, with three times that number supported indirectly.

However, Craven acknowledged political and procurement barriers preventing industry from fulfilling its potential.

“The peace dividend over the last 30 years has meant that spend on defence has reduced by approximately half to two-thirds. The underinvestment for that time is one of the reasons why we are struggling today.”

MPs Criticise UK and European Governments for Slow Procurement

The Committee also addressed broader European security concerns, pointing to the failure of governments to fully utilise defence manufacturers despite rising geopolitical threats.

Chair Tan Dhesi MP referenced Dr Jack Watling of RUSI, who has warned that European governments are not making full use of their defence industries.

Dhesi challenged the wider industry on whether taxpayers were getting value for money, quoting NATO’s top military official, who argued:

“They need to work faster. They are still in an old mentality in which earning money was the big issue.”

Kinniburgh agreed, noting that the MOD’s over-reliance on large defence primes had created a slow and expensive procurement system. He said small and medium enterprises (SMEs) are underutilised, which inflates costs and delays production.

“We are certainly very wedded to the large primes in the UK. While there is absolutely no question that they are world class, they tend to be quite expensive and cumbersome,” he said.

He added that the MOD’s excessive contract requirements were making it difficult for SMEs to compete.

“We have an SME called Filtronic, which has an eight-page contract from SpaceX. Its MoD contract for exactly the same equipment is 90 pages long. For SMEs, that just kills them.”

Julian David, CEO of techUK, argued that the MOD’s approach to military procurement is outdated, still focusing on hardware-centric designs that take years to develop, rather than adopting flexible software-driven systems.

“We need to spend more quickly. These days, the time from design to usage of anything in a weapons or battlefield environment is weeks, and the British procurement process is years.”

David stressed that modern warfare requires adaptability, with AI and cyber warfare playing an increasing role.

“The UK is very well placed in respect of that, because we have a very significant and well-regarded technology industry. It is a $1 trillion industry. We have the third-largest capability in AI, which we are now seeing become pervasive in the battle space as well as in national defence and security.”

Industry Calls for Faster Government Action

The discussion also covered the lack of UK government orders for key military equipment, even as Ukraine continues to face critical shortages in ammunition and weapons.

Kinniburgh revealed that his organisation had written to the MOD at the start of the Ukraine war, offering a list of equipment that could be produced immediately, but received no response.

“We have many members. MSI Defence makes naval guns and 30 mm and 40 mm cannons. It could be making those now. It could have been making them for the last three years with orders from the MoD, but there are no orders.”

He described the situation as “deeply frustrating,” saying that UK manufacturers have the capability to produce more but are not being given the contracts to do so.

MPs challenged the defence industry on what it could do better, rather than blaming the MOD alone. Derek Twigg MP put the question directly:

“If you will forgive me, it seems to be all the MOD’s fault. What is it that you could do better?”

Kevin Craven admitted that industry also had to step up, but argued that government inefficiencies were a major factor.

“The appointment of the national armaments director, who could have the dimensions of a War Minister—a Lord Beaverbrook—is an important step,” he said, referring to the World War II-era minister who spearheaded rapid arms production.

Craven also highlighted that the lack of long-term orders from the MOD made it difficult for manufacturers to invest in expanding production capacity.

Chair Tan Dhesi MP closed the session with a clear message:

“If we are not discussing this in this forum, and if people are not stepping up to the plate, we will fail our country.”