The Ministry of Defence has outlined steps to improve access to finance for small and medium-sized enterprises in the defence sector, amid concerns over how procurement rules affect bank lending.
Responding to a written question from Conservative MP Mike Wood, Defence Minister Luke Pollard did not directly assess the impact of procurement policy on lending, but pointed to a series of initiatives aimed at improving SME access to contracts and investment.
“The Government is committed to making SMEs a national priority, ensuring they have a fair opportunity to win public contracts and setting ambitious SME spend targets,” he said.
Pollard highlighted that 84% of the MOD’s annual spend now goes to British companies, alongside a commitment to increase direct spending with SMEs by £2.5 billion by May 2028.
A new Defence Office for Small Business Growth has also been established to help firms access contracts and integrate into defence supply chains.
Alongside this, the MOD is developing a dedicated Defence Finance and Investment Strategy, supported by a Defence Investors’ Advisory Group bringing together expertise from banking and private capital to address barriers to funding.
Well you would certainly get things done and built a lot quicker if you let smaller companies have a larger share of the pie.
Can’t let BAE do everything now can we