UK to spearhead rapid tech acquisition under new reforms

The Ministry of Defence has confirmed that 10% of its equipment procurement budget will be earmarked for novel technologies, with the newly established UK Defence Innovation (UKDI) body set to lead the effort.

The initiative, part of sweeping Defence Reform measures announced in the Spring Statement, aims to accelerate the delivery of cutting-edge capabilities to the Armed Forces.

According to Minister of State for Defence Maria Eagle, UKDI will serve as the central authority for consolidating and streamlining existing innovation structures within the Ministry of Defence (MOD). Reporting to the new National Armaments Director (NAD), the body is expected to become operational in July 2025 and will focus on fast-tracking dual-use technologies such as autonomous systems, AI-enabled capabilities, and uncrewed platforms.

“The creation of UKDI underlines this Government’s commitment to exploiting new ideas and technologies to equip our Armed Forces with cutting-edge tech and grow high tech businesses across the UK,” Eagle said in a written response to Parliament.

UKDI will not be a new arm’s length body, nor will it subsume existing ones, but it will enjoy ringfenced funding to offer confidence to industry partners. Investment cases under the initiative will prioritise small and medium enterprises (SMEs), and UKDI will work closely with Defence Equipment & Support (DE&S) and the Defence and Security Accelerator (DASA), especially where recent rapid procurement models have been trialled successfully.

The reform effort also includes a segmented approach to procurement, with new time-to-contract targets to be introduced across three categories: pace-setting modular upgrades, rapid commercial exploitation, and major platforms.

While complex, high-value projects will naturally have longer lead times, Eagle stressed that the MOD will seek to drive “pace at every stage” of the acquisition cycle. Tailoring procurement timelines to the nature of each programme is intended to ensure agility while maintaining value for money and operational advantage.

“These reforms will enable the end-to-end procurement approach to be tailored according to the nature of each programme, delivering capability into the hands of the war fighter more quickly,” she said.

UKDI is expected to reach initial operating capability this summer, with further details on staffing, budget administration, and governance to follow.