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Defence Industrial Strategy

Lifecycle: Implementation Ministry of Defence · Public Accounts Committee · Scottish Affairs Committee Last regenerated 12 hours ago

Summary

What this is

The Defence Industrial Strategy (DIS) is the MoD-led framework defining how the UK builds, sustains and exports from its defence industrial base. The current iteration — DIS 2025 'Making Defence an Engine for Growth' — replaced the 2021 Defence and Security Industrial Strategy (DSIS) and sits as the defence sector plan of the UK's Modern Industrial Strategy, supported by the Strategic Defence Review 2025.

Why it matters

DIS 2025 governs over £85bn of equipment and support spending, underpins more than 200,000 direct and indirect jobs, regional Defence Growth Deals worth £250m, an £182m Defence Industry Skills Package, and a redesigned approach to procurement, SME access, exports and onshore resilience. Industry investment decisions, regional industrial policy, and Ukraine-driven rapid innovation cycles all depend on its delivery.

Current status

DIS 2025 was published on 8 September 2025 and is in operational delivery: Defence Growth Deals have launched in Scotland (March 2026) and Northern Ireland (April 2026); the Defence Investment Plan (DIP) replacing the Equipment Plan is awaited but materially delayed past its expected June 2026 horizon, drawing Defence Committee scrutiny.

What changed recently

  • 22 Apr 2026 — £50m Northern Ireland Defence Growth Deal launched, completing the second of five regional deals funded under DIS 2025.
  • 23 Apr 2026 — MoD Arm's Length Bodies reforms announced via WMS HCWS1538/HLWS1547, restructuring oversight of DE&S, DSTL and the new UKDI under Defence Reform.
  • 29 Apr 2026 — Multiple PQs on the Defence Investment Plan went unanswered before Prorogation — including on NI industrial capacity and DIP progress — highlighting the delivery gap between DIS publication and the operationalising DIP.
  • 24 Mar 2026 — Defence Diplomacy Strategy published, a classified companion piece to DIS/SDR linking defence exports and partnerships.
  • 10 Dec 2025 — UK acceded to the Agreement on Defence Export Controls with France, Germany and Spain, reducing licensing friction for defence exports — a key DIS export-promotion deliverable.

Key documents

Framework

Statutory basis

  • Export Control (Amendment) (No. 2) Regulations 2025

    Amends Export Control Order 2008 schedules — adds and refines controls on military goods, dual-use items, semiconductors, quantum computers, additive manufacturing, and lifts UK arms embargoes on Armenia and Azerbaijan. The live statutory expression of the export-controls limb of DIS.

Operationalising

Implementation

Scrutiny

Other

Consultations

Stakeholders

Sponsoring department 4

  • Ministry of Defence → src
    Sponsoring department for DIS 2025, the SDR, the Defence Investment Plan, and all sectoral sub-strategies
  • Defence Equipment and Support (DE&S) → src
    MoD's procurement and support delivery arm — published its own DE&S Strategy in Sept 2023 setting out how it equips the Armed Forces
  • UK Defence Innovation (UKDI) → src
    New innovation organisation established July 2025 under Defence Reform, consolidating DASA, DIU and DE&S Future Capability Innovation
  • National Shipbuilding Office → src
    Cross-government office delivering the National Shipbuilding Strategy Refresh — pipeline of 150+ vessels over 30 years

Sponsoring minister 7

  • John Healey → src
    Secretary of State for Defence; signed WMSs on Defence Reform (April 2025, July 2025), Factories of the Future (Nov 2025), Defence Diplomacy Strategy (March 2026) — the responsible Cabinet minister for DIS 2025
  • Luke Pollard → src
    Minister of State for Defence Readiness and Industry; delivered the DIS 2025 launch statement on 8 Sept 2025 and the April 2026 WMS HCWS1538 on MoD ALB reforms
  • Lord Coaker → src
    Minister of State, Ministry of Defence (Lords); twelve WMSs on this thread including Defence Export Controls Agreement (Dec 2025), MoD ALB Reforms (April 2026), Defence Diplomacy Strategy (March 2026) — Lords spokesperson across the DIS regime
  • Grant Shapps → src
    Then Secretary of State for Defence under the Conservative government; issued the March 2024 Defence Nuclear Enterprise Command Paper. The department is now led by John Healey (Secretary of State for Defence)
  • The Earl of Minto → src
    Then Minister of State, MoD (Lords) under the Conservative government, repeating the March 2024 Defence Nuclear Update; the responsible Lords minister is now Lord Coaker
  • Jeremy Quin → src
    Then Minister for Defence Procurement (Conservative); signed the May 2022 DSIS Update WMS HCWS36 / HLWS35 — predecessor regime
  • Ben Wallace → src
    Then Secretary of State for Defence (Conservative); signed the March 2022 National Shipbuilding Strategy Refresh WMS and the November 2022 Equipment Plan WMSs

Lead committee 3

  • Defence Committee (Commons) → src
    Lead scrutiny committee; published Second Report on the IR and DSIS (July 2022) and is currently running an inquiry on the Affordability of the Defence Investment Plan (launched 2026)
  • Public Accounts Committee → src
    Scrutinises Equipment Plan affordability via NAO reports; took evidence on Equipment Plan 2017-27 and Equipment Plan 2021-31
  • Scottish Affairs Committee → src
    Reported on Defence in Scotland: Military Shipbuilding (2022-23, Govt Response 2023) — directly relevant to DIS regional/shipbuilding architecture

Witnesses & evidence-givers 1

  • National Audit Office → src
    Independent audit baseline; NAO Equipment Plan 2023-33 found the Plan unaffordable with the largest deficit since 2012 — the affordability benchmark against which DIP will be measured

Commentator 8

  • Lord Tunnicliffe → src
    Labour Lords spokesperson responding to DSIS 2021; pressed government on SME procurement target (25% by 2022), R&D cuts, AI strategy, and progress reporting — the Labour scrutiny line on the predecessor regime
  • Baroness Smith of Newnham → src
    Liberal Democrat Lords defence spokesperson; pressed on long-term procurement horizons beyond a single Parliament, the limits of departing from 'global by default', and procurement overrun risk
  • Lord West of Spithead → src
    Labour peer and former First Sea Lord; on DSIS 2021 challenged government on shipbuilding orders pace, Type 26 delivery timelines, and BAE Systems contracting — substantive shipbuilding-industry critique
  • Lord Empey → src
    UUP peer pressing for consistent shipbuilding work for Northern Ireland yards including Harland and Wolff — Northern Ireland industrial-capacity angle on DIS predecessor
  • Lord Houghton of Richmond → src
    Crossbench peer and former Chief of the Defence Staff; framed procurement reform as a 'speed-dating' problem between operational need and industry primes — substantive critique of procurement pace and prime monopoly
  • Lord Bilimoria → src
    Crossbench peer (CBI President at time of DSIS 2021 reply); raised intellectual property strategies and crowding-in private investment via MoD R&D — the business-association angle on DIS
  • Lord Arbuthnot of Edrom → src
    Conservative peer and former Defence Committee Chair; pressed on the resilience implications of Army reductions — connects industrial strategy to force structure
  • Philip Dunne → src
    Conservative MP and former Minister of State for Defence Procurement; tabled the July 2020 oral question seeding the development of a defence industrial strategy

Political commitments

  • commitment Ministerial statement Labour · 2025 · Defence Industrial Strategy 2025: Making Defence an Engine for Growth

    DIS as the defence sector plan of the Modern Industrial Strategy — defence as an engine for growth

    Making Defence an Engine for Growth

    Why linked: Defining ministerial commitment of DIS 2025 — links defence spending to industrial-policy growth targets.

  • commitment Ministerial statement Labour · 2025 · Factories of the future update – making defence an engine for growth.

    £1.5bn additional investment for energetics and munitions including the 'always on munitions' pipeline

    The MOD committed £1.5 billion of additional defence investment for energetics and munitions including the 'always on munitions' pipeline

    Why linked: Material spending commitment under DIS/SDR to onshore munitions production.

  • commitment Ministerial statement Labour · 2026 · To ask the Secretary of State for Defence, what progress has been made on alloc…

    £250m for five Defence Growth Deals and £182m Defence Industry Skills Package

    The Defence Industrial Strategy committed £250 million to fund all five Defence Growth Deals across the UK, and announced an £182 million Defence Industry Skills Package

    Why linked: Headline regional and skills commitments under DIS 2025, being delivered region-by-region (£50m Scotland March 2026, £50m Northern Ireland April 2026).

  • commitment Ministerial statement Labour · 2026 · To ask the Secretary of State for Defence, whether his Department has an agreed…

    50% increase in direct and indirect SME spend compared to FY23/24 baseline (~£2.5bn uplift)

    The Ministry of Defence has set an ambitious target to increase direct and indirect spending by 50% compared to FY 23/24 baseline. This increase in total spend would equate to £2.5 billion total spend increase with Small and Medium Sized Enterprises

    Why linked: Headline SME-engagement target under DIS 2025 — the successor framing to the DSIS 2021 25% SME target.

  • commitment Ministerial statement Conservative · 2021 · Defence and Security Industrial Strategy

    Shift away from 'global competition by default' in defence procurement

    It signals a shift away from global competition by default towards a more flexible, nuanced approach

    Why linked: Foundational DSIS 2021 commitment that DIS 2025 continues — explicitly broke with the 2012 'national security through technology' presumption of global competition.

  • commitment Ministerial statement Conservative · 2021 · Defence and Security Industrial Strategy

    Investment in £6.6bn R&D over four years and £85bn on equipment and support

    we are investing more than £6.6 billion in R&D over the next four years … reconfirmed this Government's commitment to spend more than £85 billion over the next four years on equipment and support for our Armed Forces

    Why linked: DSIS 2021 spending envelope establishing the baseline that DIS 2025 builds on.

Open questions & gaps

Pending in the lifecycle

  • Defence Investment Plan publication date — repeatedly slipped past expected horizons and unanswered PQs before Prorogation; central uncertainty for industry investment decisions.
  • Refreshed MoD SME Action Plan publication; promised in DIS 2025 but not yet published as of April 2026.
  • Update to the National Shipbuilding Strategy — PQ 129666 (April 2026) sought a timetable for the update; no answer before Prorogation.
  • Outcome of the DIS Offset Written Consultation (closed Dec 2025) — government response not yet published.
  • AI strategy and defence science and technology collaboration strategy — promised in DIS lineage; precise publication dates unclear.

Beyond the corpus

  • MISSING Defence Investment Plan — SDR 2025 and DIS 2025 both depend on the DIP for affordability; its absence creates a material delivery gap drawing Defence Committee scrutiny.
  • MISSING Government response to Defence Committee Affordability of the Defence Investment Plan inquiry — Inquiry is live but no government response in the corpus.
  • MISSING Refreshed SME Action Plan — DIS 2025 commits to an annual SME Action Plan; April 2026 PQs confirm it is still in production with no fixed publication date.

Confidence gaps

  • Whether the 50% SME-spend uplift target is direct, indirect or aggregated — answer to PQ 129308 (April 2026) suggests aggregated, but the publication of the SME Action Plan should clarify.
  • How DIS interacts with cross-cutting subsidy-control law (Subsidy Control Act 2022) — Defence Growth Deals are selective regional public funding but the corpus is silent on subsidy-control assessment.
  • Status of the Type 32 and Type 83 frigate programmes within the DIP — partial PQ answers in the corpus; not yet confirmed.