The Government has published the outcome of its wide-ranging Strategic Defence Review (SDR), detailing the steps needed to boost domestic manufacturing capability to support our military priorities.
UK Steel welcomes the review’s proposals, which aim to bolster UK business backing procurement and create a “thriving, resilient innovation and industrial base”. In welcome news, the SDR intends to “create a new partnership with industry” and engage industry early in procurement processes on desired outcomes, a method that UK Steel advocated for in our defence engagement review. This seeks to end the previous policy of ‘competition by default’ which had a sole focus on price over securing local supply chains and building up domestic capability.
The SDR includes an ambitious list of new investment in munitions factories, nuclear warheads, a new UK Defence Innovation Organisation and some £7bn investment in new barracks and defence homes – signalling a huge demand opportunity for UK steelmaking. Following the SDR and the Defence Industrial Strategy, in the Autumn a new defence investment plan will outline priorities to make defence an engine for wider economic growth. At a time of heightened global uncertainty, strengthening the UK’s defence manufacturing base represents a strategic opportunity to drive regional regeneration, support national economic growth, and create thousands of well-paid, highly skilled jobs.
UK Steel Director-General, Gareth Stace, said: “The Strategic Defence Review’s sweeping reform of procurement policy aligns closely with the UK steel industry’s longstanding ambition to contribute more directly to national security, resilient supply chains, and the reshoring of critical materials. It is imperative that the UK backs its own sovereign steelmaking capability as part of this ambition.
“Steel is not only integral to the construction of naval vessels and armoured vehicles but is also the foundation of essential defence infrastructure, from barracks and warehouses to shipyards and logistics hubs. British-made steel should, wherever feasibly possible, be the default choice for projects of national importance. The Defence Secretary has made clear his desire for more domestic steel to be used across defence programmes, and this review marks a turning point in converting that commitment into policy.
“UK steel producers stand ready to play a full role in delivering high-quality steel into Ministry of Defence projects of all types. The forthcoming Defence Industrial Strategy must now set out in detail how this will be achieved. The development of the Steel Strategy and the National Wealth Fund are essential tools in identifying and addressing gaps in capability, ensuring that the widest possible range of steel grades can be sourced from UK mills and furnaces to meet our national defence needs.”
For more articles like this, visit our Leadership channel