In response to a parliamentary question from Rebecca Paul, Conservative MP for Reigate, regarding the proportion of Ministry of Defence (MOD) procurement contracts awarded to UK-based manufacturers in the past 12 months, Minister Maria Eagle provided detailed figures.
Eagle revealed that between 16 December 2023 and 15 December 2024, a total of 2,266 contracts were created on the MOD’s Contract Purchasing and Finance (CP&F) system. Of these, 583 contracts (26%) were recorded with a known prime contract location. Among these:
- 531 contracts (91%) had a UK-based prime contract location.
- 52 contracts (9%) were marked as being based in a foreign country.
In terms of contract value, £3.85 billion of the £20.68 billion total (19%) was associated with a known location. Of that, £2.99 billion (78%) was tied to contracts with a UK-based prime location, while £0.85 billion (22%) went to foreign-based contracts.
In short, due to incomplete data, it’s unclear how much total UK defence spending stays domestically, but of the 19% with a known location, 78% is spent within the UK.
Eagle highlighted the significance of the UK’s defence manufacturing industry, stating: “The UK’s defence manufacturing industry is vital not only to our national security but to our prosperity and economic growth.”
She also highlighted the role of the Government’s new Defence Industrial Strategy in aligning national security needs with economic growth goals.
Ammunition Procurement and Stockpile Resilience
In a related development, Rebecca Paul, MP for Reigate, queried the MOD on efforts to replenish precision-guided munitions and enhance domestic production capacity. Eagle outlined the MOD’s ongoing initiatives:
“The Ministry of Defence is carefully investing to improve the health of our munitions stockpiles, including precision-guided munitions, within the available financial envelope. Through investing in munitions, we seek to grow domestic production, strengthen our resilience and self-reliance, boost our sovereign defence industrial capacity, increase our exports, and create good jobs in the UK.”
Eagle also noted that the department’s approach will evolve as the Strategic Defence Review progresses.
