The UK government has initiated a consultation with the defence industry to launch the ‘Back British’ offset strategy, aimed at ensuring that defence import deals result in a direct benefit to British businesses.
Defence Readiness and Industry Minister Luke Pollard announced the consultation during the Defence Procurement Research, Technology and Exportability (DPRTE) summit in Manchester.
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The proposed policy will require foreign contractors to commit to creating job opportunities, investing in the UK or engaging local small businesses as a part of their deals.
The final framework will be derived from a 12-week consultation period involving the sector.
The initiative aligns with the objectives of the Strategic Defence Review to cultivate new partnerships with industry, transform the procurement process, and encourage job growth throughout the UK.
According to the Ministry of Defence, this approach will benefit small and medium-sized enterprises (SMEs), which form the “backbone of the defence industry”.
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By GlobalDataThe UK government has already pledged to increase spending with SMEs by £2.5bn ($3.3bn) by May 2028, as part of the Plan for Change.
The plan outlines clear, attainable targets set to be met by the end of this Parliament. It aims to advance key national missions and bring tangible improvements to working individuals’ lives.
Minister Luke Pollard said: “Small businesses are the backbone of our economy. We are increasing defence spending and directing more of that at UK based firms.
“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.”
The consultation on offsets also forms an element of a broader suite of reforms under the new Defence Industrial Strategy.
This strategy intends to bolster Britain’s industrial base through measures such as setting up a Defence Office for Small Business Growth from early 2026.
In September 2025, UK Defence Procurement Minister Maria Eagle revealed in a written parliamentary response that between 1 July 2024 and 30 June 2025, contracts awarded by the Ministry of Defence to non-UK companies were on average 23.1% higher than those given to UK-based defence companies.
Earlier in October 2025, the UK entered into a £350m ($466m) defence contract with India, a decision that will safeguard hundreds of jobs in Northern Ireland.
