The UK defence sector has been busily responding to the announcement of the Government’s much-anticipated Defence Investment Plan (DIP). The strategy – which sets out funding to support the armed forces, bolster British industry and strengthen NATO’s deterrence and defence – has so far received a cautiously optimistic response.

Some sector commentators have been good enough to speak to us here at DPRTE over the last twenty-four hours. Here’s a sample of what they’ve had to say:

Charles Woodburn, BAE Systems Chief Executive said: “The Defence Investment Plan provides much-needed clarity for industry and a clear strategic direction for our armed forces. The government’s commitment to increased defence spending is vital to sustaining the specialist skills across our industrial base critical to national security, while also signalling to our adversaries that the UK is serious about its defence.

“At BAE Systems, we continue to invest in our business to drive innovation, enhance productivity and build capacity, as we play our part in meeting the elevated demand. We’re committed to working with our partners and suppliers to deliver the equipment and services our armed forces need – from fighter jets, warships and submarines that form the backbone of the UK’s enduring deterrence, to agile, disruptive technologies like uncrewed and autonomous systems. Together, we’ll ensure the UK armed forces have what they need to safeguard our national security now and in the future.”

Kevin Craven, CEO of ADS – the UK’s trade body for the aerospace, defence, security and space sectors – commented: “We welcome the Defence Investment Plan. We recognise that the environment in which we are all operating is not without its challenges, and we commend the inroads taken by the Secretary of State in the last two weeks towards a resolution. The clarity provided will support the UK’s defence industry to do what we do best: supply equipment, capabilities and services that strengthen the UK’s national security.”

Decisions Today Deliver Capability Tomorrow

He added: “Investment decisions today deliver tomorrow’s capabilities. The development of uncrewed capabilities, as well as investment in traditional platforms, is welcome. Coupled with this, support to significant, multilateral and technically innovative programmes are absolutely critical to ensuring our collective security and securing UK advantage. The initial investment in integrated air and missile defence is essential to protect the UK homeland, overseas bases and deployed forces from increasingly complex air, drone and missile threats. Strengthening export financing will unlock essential support to businesses of all shapes and sizes, particularly those in the SME category.

“The key now will be how this output is translated into contracts, and how this momentum is sustained through a clear and deliverable trajectory towards 3% of GDP by 2030 and 3.5% by 2035, reflecting the increasingly unstable geopolitical climate. We look forward to partnering with government on turning ambition into reality.”

Andy Scott, managing director, defence UK at Turner & Townsend, told us: “While (the) Defence Investment Plan falls short of the expectations raised by last year’s Strategic Defence Review, it is a positive signal that government recognises defence as both a national security imperative and a driver of economic growth. Commitments such as the £50bn defence export facility and greater support for British businesses within procurement have the potential to strengthen sovereign capability, create skilled jobs, accelerate innovation and deliver lasting social value across the UK.

“The size of the settlement will inevitably remain under scrutiny.  Though it won’t fully bridge the gap, private investment must be used to make public funding go further.  This approach offers a particularly strong opportunity in areas such as service housing, which has been widely reported to have been deprioritised in the plan but remains vital to recruitment, retention and the everyday resilience of the Armed Forces.”

Critical Test
Andy Scott added: “The critical test now is delivery of the funding which has been committed. The plan’s focus on drones, autonomous systems, AI, future combat air and the nuclear deterrent reflects both the capabilities that will underpin future defence and the rapidly evolving nature of modern conflict. But what matters is not just what we invest in, or how much, but how quickly and effectively that investment can be translated into operational capability. Building the skills, industrial capacity and cross-sector partnerships to procure and deliver with pace and agility will be essential if the UK is to improve value for money, strengthen our security and keep ahead of evolving threats.”

Darren Carlile, National Security and Government lead at engineering consultancy Ramboll, said: “Increased defence spending is essential, but it must not come at the expense of equally critical investment in net zero and resilience. Defence and decarbonisation are both fundamental to our national security and should be advanced together.

“The Strategic Defence Review rightly recognises the importance of investing in UK industrial capacity, supporting veterans, and transforming the defence estate. As military accommodation, infrastructure and surplus land are renewed and developed, there is a significant opportunity to embed sustainability and climate resilience from the outset.

“A modern defence estate should not only strengthen military capability but also create resilient communities, improve energy efficiency, and support long-term economic growth. By integrating resilience into defence infrastructure today, the UK can enhance both national security and environmental security for the future.”

‘Welcome Clarity’

Anthony Kirby, Serco CEO, commented: (the announcement of the DIP) “…brings welcome clarity. The defence industry must continue to support the delivery of the UK’s defence priorities. We can see the intent – a futureproof military that blends the best of human, conventional, and autonomous capabilities.

“We must match innovation in technology with the same in procurement and regulation. That’s how we got the first large autonomous naval vessel in the water – Defiant USX1 – working with the US defence research agency DARPA. With over 60 years operating in defence, we understand the urgency required. Industry, academia, and the public sector will now need to work together to keep pace with not only the world’s leading militaries, but our adversaries too.”

Sarah Gregory CEO and founder of Slipstream Design added: “While much of the public discussion surrounding the DIP has understandably focused on budgets and affordability, we see something more significant: an opportunity to rethink how capability is delivered. If the UK cannot simply outspend every threat, it must out-innovate them. That is where agile, mission-driven SMEs have a critical role to play.

“One of the strongest messages within the Defence Investment Plan is the need to accelerate the journey from innovation to operational capability. That demands a different approach to procurement. Rather than funding every technology from concept through to delivery, Defence has an opportunity to work with SMEs that have already invested in developing advanced capability. By building on existing technologies, programmes can reduce development timelines, lower programme risk, and deliver meaningful operational advantage far more quickly.”

AI-Enabled Autonomy

“The Defence Investment Plan sets a bold direction for the future of UK Defence. The capabilities required to meet that future – software-defined communications, resilient edge processing, AI-enabled autonomy and rapid technology development – are exactly what we have spent years preparing for. The challenge now is not simply to invest more; it is to deliver better, faster and smarter to keep the country secure.”

Andrew Thomis, the CEO of Cohort said: “The Defence Investment Plan gives welcome direction and certainty. The existence of the Plan and a clear set of priorities with funding will, we hope, bring the unpredictable delays and pauses on existing projects to an end.

“From Cohort’s perspective, we’re encouraged by the emphasis on the hybrid navy and Atlantic Bastion, as well as seabed warfare and protection of underwater infrastructure. The commitment to funding for the development of weapon and sensor payloads for uncrewed vessels under AUKUS Pillar 2 is also welcome.

“The new export facility announced today is good news and will support growth and employment within the UK defence industry. It’s important that the £50 billion funding is not used solely for large headline contracts and is made available to support mid-sized companies that can adapt, innovate and scale at pace.

“The detail and timeline of the Plan will underpin the UK’s defence, but it will be delivered on a much slower trajectory than the Strategic Defence Review set out. This may not be fast enough to deal with real and gathering threats that we see today. Our European allies are increasing their defence spending at pace, evidenced by the rapid rate of growth we see in our non-UK revenue.

“To maintain peace and stability in Europe, the UK needs to deter potential threats proactively before they escalate. The Defence Investment Plan is a first step toward this. It provides the foundation for the next Prime Minister to build on to deliver the ambition set out by the Strategic Defence Review.”

Damon Olloman, VP Missions, UK & Canada at ICEYE said of the announcements: “ICEYE welcomes the UK Government’s significant investment in space capability set out in (the) Defence Investment Plan. The £3.2bn commitment signals serious intent. Space-as-a-Service accelerates capability insertion and provides a credible bridge to sovereign programmes. ICEYE’s customers are choosing speed, flexibility, and international collaboration, without sacrificing sovereignty or affordability. Both can be achieved through the right mix of commercial SaaS and sovereign satellites.”

Strategic Investment

Tanya Suarez, CEO of Janus Allies and IoT Tribe, says: “The release of the Defence Investment Plan comes at a critical moment. There is no doubt how important the UK’s defence sector is to the collective power of NATO and the broader European defence technology landscape. Strategic investment decisions by the UK serve as a benchmark for other armed forces, validating the procurement of specific technologies and generating a positive ripple effect throughout the industry.

“In Q1 of this year, UK AI start ups raised $5.8bn, equivalent to 63% of all AI funding raised in Europe during the same period. We remain a leader in European AI investment, making the establishment of a Rapid AI Delivery Taskforce a significant step toward faster deployment of AI-driven defence tools. Such initiatives provide a platform for top-tier AI start ups to scale, help retain and attract the best talent, and strengthen the security of both the UK and NATO through the adoption of cutting-edge technologies.

“But perhaps most importantly, the £5 billion investment in drones is a watershed moment for the UK Armed Forces. The war in Ukraine and the proliferation of drones in battle have forever changed the nature of conflict. Beyond direct combat, these systems will play a critical role in intelligence, surveillance, and reconnaissance to bolster early warning capabilities, while also providing essential electronic warfare tools to disrupt enemy GPS and communications.”

Phil Applegarth, Director at Supacat, said: “The Defence Investment Plan is a welcome signal that the government is backing the technologies and businesses that will define the future battlefield. The increased investment in autonomous systems and the recognition of SMEs as a critical part of the UK’s defence industrial base are particularly encouraging.

“Innovation in defence is increasingly coming from agile British companies that can move quickly, develop capability at pace, and work collaboratively with larger industry partners. Giving SMEs a greater role in procurement will help accelerate the delivery of new technologies into frontline service, while strengthening sovereign capability and supporting skilled jobs across the UK. The Government has repeatedly said it wants to remove barriers for SMEs and speed up procurement, and this investment needs to be matched by those reforms if the full benefits are to be realised.

“We are already investing in the next generation of land mobility, developing AI-enhanced and autonomous vehicle technologies that build on decades of operational experience. As the Army places greater emphasis on uncrewed ground vehicles and human machine teaming, British companies with proven land systems expertise have a real opportunity to help deliver the capability the Armed Forces will need over the coming decade, as military vehicles increasingly become a hybrid of man and machine.”

Ollie Thompson, Technical Director at MarineAI said: “The Government’s commitment to invest in uncrewed systems and AI marks a necessary shift in how the UK’s future naval capability will be built. The concept of a hybrid navy reflects the reality that tomorrow’s maritime operations will increasingly rely on teaming between crewed and autonomous platforms, rather than either or.

“Investment is clearly welcome, but success will ultimately depend on how these technologies are integrated into today’s Navy. AI on its own is not enough. Operational advantage will come from combining trusted autonomy, intelligent decision making and seamless collaboration between crewed vessels, uncrewed systems, and operators. There is a shift already happening that is placing an emphasis on the development of autonomous vessels being able to operate independently when they are out of reach of control rooms, and degraded communications remove remote piloting options…the UK has the necessary ecosystem to deliver world leading maritime autonomy technologies. The Defence Investment Plan provides the much needed opportunity to accelerate that innovation, strengthen sovereign capability and ensure British industry plays a leading role in delivering the next generation of naval capability.”

Maritime Drones

Matthew Ratsey, the Managing Director of ZeroUSV, said:”ZeroUSV welcomes the government’s commitment to spending under the DiP for uncrewed surface vessels. The Oceanus class USVplatforms we design, build and deploy from our Plymouth base here in the UK are ready to deliver and meet the Royal Navy’s hybrid Navy blueprint…Maritime Drones known in the industry as USV’s or uncrewed surface vessels have an increasingly key role to play across defence, with the ability to integrate a wide range of differing sensor payloads allowing intelligence gathering, surveillance, force protection, hydrographic survey and logistical re-supply. They enable the Royal Navy to extend its reach, reduce risk to personnel and operate more effectively in contested environments, complementing existing crewed platforms.

“The Royal Navy has been focusing on autonomy already with Atlantic Bastion, placing a huge focus on utilising USVs, which we are proud to have completed demonstrations for. For UK industry, this investment is equally important. It provides the confidence needed to continue developing sovereign autonomous capabilities, grow domestic manufacturing and strengthen the supply chain that sits behind these technologies. Britain already has world class expertise in maritime autonomy, and the priority now is maintaining momentum and ensuring innovative British companies are contracted to deliver their world class technology, and maintain their technical superiority for the UK and Royal Navy’s advantage.”

Image: The UK Prime Minister, Sir Keir Starmer, on a visit to the BAE Systems’ Malloy Berkshire site – which specialises in UAS (uncrewed air systems), just ahead of publishing the DIP. Copyright BAE Systems.