Some businesses will be required to invest locally under new ‘Back British’ drive
UK businesses, workers and communities are set to benefit under new government plans to ‘Back British’ and ensure defence investment boosts jobs, skills, and innovation.
The government has announced that it is launching a significant consultation with industry on a ‘Back British’ offset approach to ensure that defence import contracts benefit British businesses, jobs and skills.
The proposals mean that when the UK buys from international partners, the winning contractor would be required to create jobs, know-how and investment opportunities here in the UK – strengthening the UK economy.
This could mean an international partner is required to base some manufacturing in the UK, use UK small firms in its supply chain or invest in UK skills as a condition of any deal.
Minister for Defence Readiness and Industry, Luke Pollard, announced the consultation on Thursday (23 October), speaking to an audience of over 500 small and medium-sized business (SMEs) at the inaugural Defence Procurement Research, Technology and Exportability (DPRTE) Summit in Manchester.
The 12-week consultation with the sector will shape any final offset framework, ensuring it works effectively for British based businesses, while maintaining strong relationships with international partners and allies. T
SMEs, which form the backbone of the defence industry, will benefit from the new approach, the government said.
“Small businesses are the backbone of our economy. We are increasing defence spending and directing more of that at UK based firms,” said Minister for Defence Readiness and Industry Luke Pollard.
“Where we have to buy from foreign firms a new offset approach means UK SMEs will benefit from offset agreements. By helping open up global supply chains to UK firms of all sizes, a new offset approach will strengthen our Armed Forces while making defence an engine for growth across Britain.”
