MOD £35m backs SMEs in Scotland, Wales and South West
On Small Business Saturday, ministers put numbers behind a simple promise: defence money working outside London. The MOD says £35m since July 2024 has flowed into smaller firms in Scotland, Wales and the South West to turn clever ideas into frontline kit, backed by a new £400m-a-year ringfence for UK Defence Innovation.
Luke Pollard MP, the Minister for Defence Readiness and Industry, put it plainly: “We’re backing small businesses up and down the UK-creating good jobs in the regions and giving our forces the best tools.” His point is hard to miss: national security and local pay packets can move together.
Delivery sits with the Defence and Security Accelerator (DASA), drawing on the Defence Science and Technology Laboratory. The model is to spot promising civilian tech early, fund trials, and push dual‑use products-things that work for hospitals or railways as well as the military-towards deployment and keep the UK at the sharp end in NATO.
North of the border, QuickBlock’s flat‑packed building blocks-originally a civilian design-have been adapted into robust ballistic and blast barriers. The system can be moved by hand, assembled quickly and redeployed after use, a practical fix for training grounds and live operations.
In Wales, Swansea University spin‑out Trauma Simulation has built full‑body training models that let Combat Medics and Medical Emergency Response Teams rehearse life‑saving procedures under pressure. It’s a step on from torso mannequins: realistic anatomy, bleeding and airway challenges that raise the bar for pre‑hospital care.
Down in the South West, Sentinel Photonics-founded by former Dstl scientists-has grown from a start‑up to a 20‑strong team. Its clip‑on sight attachments shield a user’s vision from lasers and cut the risk of being picked up by laser surveillance; the add‑ons are now integrated into the KS1 rifles entering service.
Impact is starting to show. A new DASA report counts close to £1bn in economic value and around 1,800 jobs created across the UK. Despite a tougher funding market, DASA‑backed firms still raised £174m in 2024, pointing to patient buyers in defence when other sectors slow.
The Strategic Defence Review created UK Defence Innovation (UKDI) to keep that pipeline moving, and locked in a £400m ringfenced annual budget. The MOD also set a target that 10% of its equipment procurement will go on novel technologies each year, putting steady demand behind trials and scale‑up.
Access is a big talking point for smaller firms. A new Defence Office for Small Business Growth is meant to open doors, with a commitment to lift SME spending by £2.5bn by May 2028. For workshops and labs outside London, that’s an opportunity to hire apprentices, buy kit and snap into national supply chains.
“Innovation turns up everywhere,” said Anita Friend, who leads DASA. The case studies back her up, from Scotland to the Valleys and the South West coast. With the UK’s small business population rising to 5.64 million this year, the message for founders away from the M25 is clear: bring the ideas-and expect the MOD to pick up the phone.