The Ministry of Defence has awarded 4,130 new defence procurement contracts since the current government took office on 5 July 2024, and 3,680 of them, representing 89 per cent, went to companies located or headquartered in the United Kingdom, Minister for Defence Readiness and Industry Luke Pollard confirmed in a parliamentary answer on 23 April.

Pollard confirmed that 450 contracts, or 11 per cent of the total, went to companies based outside the UK, in response to a question from Liberal Democrat MP Sarah Dyke, who had asked how many contracts had gone to domestic manufacturers and what share had been outsourced overseas.

The headline figure doesn’t tell the whole story though. A separate parliamentary answer from September 2025 revealed that in the first year of the current government non-UK companies received an average contract value of around £17.2 million per award compared to around £13.6 million for UK-based firms, meaning overseas companies were winning fewer contracts but larger ones, and the April answer doesn’t break any of this down by value.

That gap reflects in part how some of the largest defence programmes are structured, where the prime contractor simply isn’t British. Lockheed Martin holds the F-35 contract, the Boxer armoured vehicle programme draws on German and Dutch industry and a range of munitions and electronic systems have no viable domestic supplier at all.

BAE Systems remained the single largest contractor to the MoD in 2023-24, receiving just over £6.7 billion, with the top ten suppliers between them accounting for around 39 per cent of all procurement expenditure.

George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison

10 COMMENTS

  1. Thanks for clarifying for everyone that the number of orders announcement isn’t the whole story. We need more responsible reporting like this.

    • I’ve personally got no problem with the UK buying quality kit from our allies providing they in turn are buying quality kit from us (preferably of a similar value). It is difficult to show an accurate picture however I would prioritise actually buying kit for our forces over too much analysis.

  2. All part of HMG spin though.
    When pressed that the government have ordered next to nothing regards kit, they replied the other month that they’d placed over 4,000 contracts.
    Whoopy do. The sort of contracts placed constantly, by all business, for anything from stationary to fixing light bulbs.
    That is normal government department business, yet it was used as evidence they’re doing something about defence.
    So, so poor.
    They must know what contracts people are calling for. More kit, more people, more assets.

    • Well. There isn’t a massive shortage of kit. Unless you are referring to things like Ajax, where a whole capability is missing. The bigger issue is a shortage of recruits

      • Mattus, you wrote: There isn’t a massive shortage of kit.

        In addition to armoured recce vehicles (as you mention), the army is very short of 155mm SP artillery, heavy mortars, SkySabre SAM systems, modern IFVs, a MORPHEUS-type system to replace BOWMAN, MIVs/APCs, organic TCVs for light role reg and AR units, Land Rover replacements, CR2 tanks (many being away with RBSL for upgrade), Unmanned Ground Vehicles, Watchkeeper replacement, veh-mounted LRATGW.

  3. Not sure these statistics are really meaningful. You can be classified as a UK defence company by having a small local subsidiary that takes the formal contract, or even just a management office. Most of the contracted work can then be sub-contracted abroad, but in the UK MoD statistics it is recorded as a contract win by a British firm. The key issue is where all the work is actually carried out, but this is frequently not made public.

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  5. Funding foreign jobs and supply chains with UK tax payers money is treason. I go out to work and pay my taxes to fund UK jobs and to skills and research so we can do things ourselves and be independent and not have to rely and be blackmailed by a foreign power when they get upset with us.

    • Oblisk, I am somewhat reassured that only 11% of defence procurement contracts go to foreign firms, especially when you consider how Britain’s Defence Industry has atrophied over the last 30 or 40 years, such that we can no longer make many defence equipments.

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