On Friday 6 February 2026, the Ministry of Defence staged a first‑time Dragons’ Den‑style showcase, putting ten dual‑use tech SMEs in front of more than 100 potential backers. Officials pitched it as a way to deliver a “defence dividend” in every corner of the UK, not just the capital. (gov.uk)

“We want this to be the best place in the world to start and grow a defence business,” Defence Secretary John Healey told attendees, as firms set out how their civilian‑military tech could scale with private capital. (gov.uk)

The event, hosted at Grant Thornton UK, sits alongside a pledge to lift defence spending to 2.6% of GDP from 2027, described by ministers as the largest sustained rise since the Cold War - with the promise that jobs and investment reach beyond London. (gov.uk)

The new Defence Office for Small Business Growth, launched on 27 January, is meant to make bidding simpler and faster for smaller firms after the MoD spent £1.2bn directly with SMEs in 2024/25. Ministers have set an extra £2.5bn SME spend target through to May 2028, taking the total to £7.5bn, while new guidance requires departments to set and publish SME targets. (gov.uk)

Support is being taken on the road too. Alongside an online Export Faculty, the SME Surgery programme has been meeting founders where they are - from Cardiff to Edinburgh, Newcastle to Belfast - with more than 1,000 firms supported since May 2024 and regular sessions run with UK Defence and Security Exports. (gov.uk)

County Durham’s Filtronic shows how Northern engineering fits this picture. Backed through DASA’s Defence Technology Exploitation Programme, the Sedgefield team is developing low‑cost packaging for future radar modules to strengthen sovereign supply chains. “This award showcases our technological leadership,” said CTO Dr Tudor Williams. Last summer the company also announced a £13.4m defence order to be built at its NETPark site, following earlier Business Durham support for new packaging kit. (gov.uk)

In Prudhoe, OpenWorks Engineering has expanded into an 11,500 sq ft facility to ramp up production of its counter‑drone optics and SkyWall net‑capture systems. “Our move to Regents Drive has proved a fantastic opportunity,” said managing director Chris Down, crediting council‑backed grants for unlocking growth. The firm’s Northumberland base underlines that advanced air‑defence kit is being built far from the capital. (northerntrust.co.uk)

Over in Ulverston, Oxley Group continues to light up major programmes, supplying LED systems for the British Army’s Boxer vehicles and upgraded Challenger 3 tanks. The contracts - £3.7m for Boxer and £1.39m for Challenger 3 - are being delivered end‑to‑end in Cumbria. (oxleygroup.com)

Sedgefield’s Kromek underlines the dual‑use angle. The radiation‑detection specialist won a £2m MoD deal in 2024 and followed up with fresh security orders in 2025, adding to a steady flow of overseas contracts - proof that defence sales can spill into wider public‑safety markets. (businesscloud.co.uk)

For exporters, the government plans a new business centre in Kyiv this year, funded for three years, to help UK firms - especially SMEs - navigate insurance, security and licensing hurdles while supporting Ukraine’s urgent needs. Officials say the hub should open new markets and feed jobs back into UK regions. (gov.uk)

The wider backdrop is buoyant: the UK booked over £20bn of defence exports in 2025 - the highest since records began - and industry body data suggests around 60% of defence SMEs now sell to NATO allies, strengthening order books in towns and cities across the North. (gov.uk)

What matters next for founders here is take‑up. The OfSBG aims to be a single front door into defence buying, while the Export Faculty and touring surgeries - Newcastle included - offer hands‑on advice on export controls, DASA funding and routes to market. If ministers’ promises on procurement speed and SME spend stick, there’s a credible path from prototype to payrolls up north. (gov.uk)