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The UK Defence Industry in the 21 Century
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The Five Forces of Americanisation
Emphasising the importance of this initiative, Sir Kier Starmer’s new government, took this policy
further just two months after entering office, notably including “social value” when considering
procurement options.
“In 2021 the MOD adopted a new approach to defence procurement in the Defence and Security
Industrial Strategy (DSIS). This replaced the former policy of “global competition by default” with
a “more flexible and nuanced approach”.
“The MOD will use competition “where appropriate” but will also consider other approaches. As
with other central government departments, the MOD will include social value in procurement
(above the threshold). The MOD will pilot a revised industrial participation policy and will
“encourage and support defence suppliers, whether headquartered here or overseas, to consider
carefully what can be sourced from within the UK.”
th
(Research Briefing: Defence procurement reform) House of Commons Library, 13 September,
2024)
Rishi Sunak had endorsed the 2021 DSIS in his 2023 “Refresh” - “… as threats and volatility increase,
we recognise the growing importance of deterrence and defence to keep the British people safe and
our alliances strong.” He also took an equally important step by developing a co-ordinated approach
to trade, security and diplomacy; “We will take forward work to maximise the benefits of the merger
of diplomacy and development in one department. The Minister for International Development will
have a permanent place on the National Security Council”. This initiative also looks likely to be
reinforced by the new government within the Cabinet Office’s 2025 civil service review. Clearly this
will be an important enabler of One Defence, providing the governance, structure and ways of
working that will support its implementation across government, not just within the MoD
“It’s about strategic literacy. It’s about sharper statecraft. It’s about trade and technology. It’s
about the strength and resilience of our industrial base and winning the war for talent. It’s about
the re-imagining of alliances, the need for new security architectures, and for modern institutions
that are configured for the challenges of our time”
(Chief of the Defence Staff Admiral Sir Tony Radakin, Annual Royal United Services Institute
Lecture; December 2023)
Consistent with the link between defence, trade and diplomacy and the resultant contribution this
makes to national prosperity, the evidence of the last twenty years endorses the point that One
Defence cannot be delivered by the MoD alone. It is a task that extends beyond one government
department.
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Notes
1. 1988: Learning from experience: a report on the arrangements for managing major projects in the
Procurement Executive
July 1990: Options for Change defence review
February 1998: Transforming the UK’s Defence Procurement System by McKinsey
July 1998: Strategic Defence Review
October 2009: Review of Acquisition for the Secretary of State for Defence by Bernard Gray
February 2010: The Defence Strategy for Acquisition Reform
October 2010: Securing Britain in an Age of Uncertainty: The Strategic Defence and Security Review
May 2011: Defence Materiel Strategy
June 2011: Defence Reform: An independent report into the structure and management of the Ministry of
Defence by Lord Peter Levene
November 2015: Strategic Defence and Security Review
December 2017: Industry for Defence and Prosperous Britain: Refreshing Defence Industrial Policy
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07/07/2025 Richard Hooke 2025

