The Ministry of Defence has launched a brand-new team to give small British businesses a real boost in landing defence contracts.
Defence Readiness and Industry Minister Luke Pollard MP announced the move during a visit to the National Manufacturing Institute Scotland, highlighting the government’s commitment to cutting red tape and backing homegrown innovation.
Called the Defence Office for Small Business Growth (OfSBG), the team is made up of policy and commercial experts whose mission is to simplify procurement, speed up processes, and provide hands-on guidance to small and medium-sized enterprises (SMEs) across the UK.
A Boost for SMEs Across the UK
Initially, 30 SMEs from a variety of sectors and regions will take part in the programme.
They will help test, refine, and demonstrate how the OfSBG can make it easier for small businesses to compete for MOD contracts.
These companies represent the best of British capability, from cyber and aeronautical engineering to cutting-edge manufacturing.
The initiative is part of a broader government plan to increase defence spending with SMEs by £2.5 billion by May 2028, building on the £1.2 billion already invested in 2024/25.
By then, MOD spending with SMEs is expected to hit £7.5 billion, reinforcing small businesses as a key driver of growth, innovation, and national security.
Cutting Red Tape and Supporting Growth
The OfSBG will provide practical support to SMEs, including advice on tendering, contracting, networking, and mentoring.
It will also serve as a confidential channel for raising concerns and navigating complex procurement rules.
By streamlining policy and commercial processes, improving cash flow management, and enhancing transparency, the team hopes to remove the traditional barriers that have held SMEs back in defence contracting.
Minister Luke Pollard said:
“Small businesses told us defence procurement was too slow, too complex, and too hard to navigate.
We listened, and now we’re acting. We’re breaking down barriers and opening new avenues for innovation. Defence is an engine for growth, and small businesses are the backbone of UK defence.”
Strengthening Defence and the Economy
Scottish Secretary Douglas Alexander highlighted the benefits for local businesses:
“The creation of the Defence Office for Small Business Growth is great news for Scottish businesses, workers, and the economy.
It will help boost opportunities and access to investment, supported by our pledge to increase spending with SMEs by £2.5 billion by May 2028.”
Currently, the MOD spends over £2 billion a year with Scotland’s defence sector, supporting nearly 12,000 jobs.
The new programme is expected to expand opportunities further, supporting innovation while helping protect national and European security.
Creating a Vibrant SME Ecosystem
The OfSBG will work closely with the new SME Commercial Pathway to ensure that MOD teams actively reduce obstacles for small businesses.
This includes reserving smaller contracts for SMEs, breaking larger procurements into manageable pieces, improving cash flow, and connecting SMEs with prime contractors and investors.
National Armaments Director Rupert Pearce added:
“SMEs are the backbone of UK defence, bringing the innovation, agility, and fresh thinking our Armed Forces need.
A more vibrant SME supply chain means better capability for our Armed Forces, greater resilience in our industrial base, and economic growth for communities across the country.”
By linking defence, government, and private investors, the initiative aims to create a dynamic, well-capitalised ecosystem of high-growth small businesses that can quickly respond to the Armed Forces’ needs.
A Historic Moment for UK Defence and SMEs
The OfSBG launch comes as the government commits to the largest sustained increase in defence spending since the Cold War, aiming for 2.6% of GDP by 2027 and £270 billion invested across this Parliament.
By empowering SMEs, the Ministry of Defence hopes to make defence an engine for regional growth, innovation, and national security across the UK.
Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn