Today, Luke Pollard MP, Minister for Defence Readiness and Industry, formally announced plans for a public consultation on the proposed creation of a UK Offsets policy, as outlined in the Defence Industrial Strategy, published in September 2025. Launched at the inaugural Defence Procurement Research, Technology and Exportability (DPRTE) Summit in Manchester, the proposed offset approach aims to ensure that defence import contracts benefit UK businesses, jobs, and skills. The policy is designed to strengthen the UK’s defence industrial base and ensure that defence spending contributes to long-term economic growth across the country.
“Offsets” and “Industrial Participation” are increasingly standard features in the awarding of export contracts in a number of sectors, but are most commonly associated with defence contracts. They typically involve large value contracts which are placed by a national Government.
Today’s announcement sets out some clear questions which need to be addressed and answered, including:
- What are the benefits and risks of introducing an offset policy in the UK?
- What are the opportunities for greater international collaboration from introducing a UK offset policy?
- What can be learned from the offset policies of other countries?
- How would the introduction of an offset policy impact the defence market in the UK?
Kevin Craven, ADS CEO said:
“Offset agreements have the potential to be a powerful tool, not only ensuring our Armed Forces get the right equipment, but also unlocking opportunities for all UK businesses from the very smallest to scale, export, and invest.”
“We warmly welcome the government’s recognition that industry must be at the heart of shaping this policy. For these agreements to succeed, they must be built on a foundation of supply chain resilience, ensuring our defence workforce remains secure, our industrial base stays strong, and our national capability delivers maximum value for the taxpayer.”
The UK MoD will be inviting responses from the full range of defence sector stakeholders to the questions and proposal, and ADS will be heavily involved in supporting this initiative.
Further details are available from: brinley.salzmann@adsgroup.org.uk.
