Over 87% of UK Defence Equipment Spending Goes to Domestic Industry

UK Defence Equipment Spending Focuses on British Industry

The United Kingdom Ministry of Defence confirmed that over 87% of its equipment procurement spending is placed with UK companies, highlighting the government’s focus on domestic industry. According to Defence Minister Luke Pollard, the MOD’s total direct expenditure with industry reached £35.4 billion in 2024–25, with £31.7 billion spent within the UK.

Of this, £11.9 billion was dedicated specifically to equipment procurement, of which £10.4 billion (87%) was spent with UK-based firms. Pollard emphasized that the government is allocating more of its rising defence budget to British companies, citing annual statistics on regional and industrial expenditure.

The MOD noted, however, that it does not centrally track the origin of all raw materials used in equipment production. This means while the spending largely benefits UK companies, some overseas content may be embedded in supply chains supporting domestic production.

The statement was made in response to questions from MP Lee Anderson, underlining the MOD’s commitment to supporting local defense capabilities while maintaining transparency about procurement practices.

Industry experts say this focus on domestic spending helps sustain the British defence industrial base, ensuring capacity for future military modernization programs and supporting thousands of jobs across the country.

The MOD regularly publishes data on industry expenditure, showing regional distribution of procurement and reinforcing the government’s strategic intent to maintain sovereign defence capabilities while leveraging UK-based expertise.

As the UK invests in modernization programs, including advanced armoured vehicles, naval vessels, and aerospace platforms, domestic procurement remains a cornerstone of policy. Ensuring that a significant share of spending stays within the UK helps stabilize long-term supply chains and reinforces industrial resilience.