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New Team Aims to Help British Small Businesses Win Defence Contracts

The Defence Office for Small Business Growth aims to boost Ministry of Defence spending with UK SMEs by 50% to £7.5 billion by 2028, creating jobs and strengthening supply chains.

  • On Tuesday, Defence Readiness and Industry Minister Luke Pollard announced the launch of the Defence Office for Small Business Growth, aimed at increasing MOD SME spending to 7.5 billion by 2028, during a visit to the National Manufacturing Institute Scotland.
  • Pollard said the office responds to repeated complaints from small firms about procurement, as officials say the OfSBG aims to reverse a decline in MOD spending with small businesses and deliver a 50% increase by 2028.
  • A public-facing web portal and contact centre will initially support 30 pathfinder SMEs from sectors like aeronautics and cyber, while the OfSBG team will guide firms to bid and win contracts using a revised SME Commercial Pathway.
  • Scottish Secretary Douglas Alexander says the office will boost opportunities and access to investment, supported by a pledge to increase spending with SMEs by 2.5 billion by May 2028, as Scotland already receives over 2 billion in MOD spending and supports nearly 12,000 industry jobs.
  • Officials say the OfSBG will oversee reforms to simplify commercial processes, improve cash flow for firms, and provide clearer long-term procurement visibility to encourage private sector investors, with pilots refining the service in the coming months.
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New team aims to help British small businesses win defence contracts

The Defence Office for Small Business Growth has been launched.

·London, United Kingdom
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The Independent broke the news in London, United Kingdom on Tuesday, January 27, 2026.
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