UK Government has been urged to accelerate preparations for potential war within the next 1,000 days, with the House of Lords Industry and Regulators Committee warning that Britain’s defence industry risks falling behind unless significant reforms are introduced to procurement processes and its relationship with government.
In a report published on Wednesday, the committee cautioned that the country’s defence industry would struggle to respond quickly enough to emerging security threats if the Ministry of Defence (MoD) maintains its traditional relationship with commercial firms.
The Lords committee identified the Ministry of Defence’s procurement culture as a major obstacle to strengthening Britain’s defence capabilities and called for a “significant shift in the culture” of the department, which it criticised for prioritising compliance with established processes over the rapid delivery of operational capabilities.
“Much of the bureaucracy and process in defence procurement was intended to reduce the risk of wasting public money. This has slowed down procurement without obviously reducing waste.”
Industry and Regulators Committee
It added that the Ministry of Defence must become “more comfortable with greater flexibility and risk” when acquiring new capabilities, accepting that finished products may differ from initial expectations and that failure can provide valuable lessons.
They also argued that the government should reconsider its approach to assessing value for money by looking beyond the lowest available costs and placing greater emphasis on speed, operational effectiveness and long-term defence requirements.
The report further recommended that the government consider funding multiple companies working on the same technological challenges to strengthen industrial resilience and expand the country’s capacity to develop innovative military capabilities.
Lords Demand Stronger Government Partnership with Defence Industry
The committee also warned that Britain’s traditional approach to engaging defence manufacturers could prevent companies from responding effectively to rapidly evolving military technologies and emerging security threats.
“If the Government continues its arm’s-length, buyer-seller relationship with industry delivering against detailed and prescriptive technical specifications, industry will not be able to move quickly enough to exploit fast-developing technology or to protect the UK in the event of war.”
Industry and Regulators Committee
Instead, they called for earlier engagement with defence companies before procurement requirements become fixed, allowing manufacturers to contribute technical expertise and develop solutions more efficiently.
They also urged Prime Minister Andy Burnham to reinforce commitments made by Defence Secretary Wes Streeting by providing greater protection for officials who take calculated risks in pursuing faster procurement decisions.
The committee recommended a strategic statement on defence to give businesses clearer direction on the government’s requirements and long-term investment priorities.
Baroness Hayter, Chair of the Industry and Regulators Committee, emphasised that rebuilding Britain’s defence capabilities urgently requires a more effective partnership between government and industry.
“Whilst we welcome recognition of the need for change within the Ministry of Defence, it must accelerate, embrace new technologies and enhance the role of SMEs (small and medium-sized enterprises), whilst ensuring the skilled workforce needed to deliver this change.”
Baroness Hayter
She also urged the government to use the December 1 Defence Investment Summit to provide businesses with greater certainty and advance the proposed partnership.
The committee welcomed the government’s adoption of recommendations from the 2025 Strategic Defence Review, but maintained that further action was necessary to translate its commitments into practical improvements.
Government Defends Defence Investment and Industrial Reforms
The committee’s recommendations follow the government’s efforts to increase defence spending and strengthen Britain’s domestic military manufacturing capabilities amid growing international security concerns.
Chancellor John Healey committed the government to raising defence spending to 3% of economic output by 2030 in the November Budget, with the next spending review expected to establish a pathway towards achieving the target.
The government has also pledged almost £300 billion in defence investment as part of efforts to transform the armed forces and improve their operational readiness.
Responding to the committee’s concerns, a Ministry of Defence spokesperson maintained that “this Government is delivering the biggest sustained increase in defence spending since the Cold War, investing almost £300 billion to transform our Armed Forces to warfighting readiness to keep Britain safe.”
The department also highlighted its commitment to increasing procurement opportunities for smaller businesses, including an additional £2.5 billion in spending with small and medium-sized enterprises (SMEs).
It added that its Office for Small Business Growth was working to reduce barriers to entry, expand access to defence contracts and provide greater support for British companies.
However, Baroness Hayter maintained that the scale of the security challenges facing Britain requires stronger government leadership and faster implementation of defence reforms.
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