Intro
The publication of the long-awaited UK Strategic Defence Review (SDR) on 2 June 2025 opens ‘a new era for defence’. The 140-page long publication outlines a 10-year plan centred on five ambitions: to have a “NATO First” defence policy; to move to “warfighting readiness”; for UK defence to be an “engine for growth”, for “UK innovation to be driven by lessons from Ukraine”, and for the UK to adopt a “whole-of-society approach” to defence.
In a departure from past reviews, the Government commissioned an independent committee to lead the review on behalf of the Ministry of Defence (MOD). Many experts were consulted, including ADS’ very own Defence Director Samira Braund. The reviewers examined 8,000 submissions to formulate 62 recommendations which the Government accepted in full, making it in effect a Government review.
ADS’ own submission was informed by no less than five industry workshops with MOD, a further five with the Army and RAF, and by many, many invaluable written inputs from our members, so we welcome the SDR’s stronger focus on industrial partnership compared with previous reviews. This provides much needed clarity of the demand signal, and the recognition that industry will be instrumental in addressing the geopolitical challenges we face. Increasing military and industrial threats require unified efforts across Government and industry, and a deliberate approach to engaging bigger appetite for defence spending. Therefore, while the vision of the review is clear and sensible, success will depend on securing the necessary resources and ensuring effective implementation.
Preparing for the future of warfare
The SDR had been publicised as a ‘root and branch review’ of the whole UK defence enterprise. Undoubtedly, it addresses many of the wide-ranging capabilities needed to keep the UK safe, starting with confirmed £15 billion of investment for its sovereign nuclear warhead programme. The review strikes an important balance between regenerating mass in ‘traditional’ capabilities and driving innovation. Decisions to mass procure 7,000 UK-built long-range weapons and invest £6 billion in munitions stockpiles and production pipelines represent an acknowledgment that war readiness relies not solely on producing exquisite kit at the expensive of volume, but also on ensuring large-scale production in key areas.
In parallel, the Government is banking big on fostering innovation and emerging technologies. Defence Research and Evaluation (DRE) and UK Defence Innovation (UKDI) will deliver “good enough” solutions based on shared problem sets rather than specifications. Defence procurement has long suffered from the pursuit of prescriptive capabilities, so this marks a significant shift. Besides, we know that bolstering research requires addressing skill gaps to realise the potential of defence investments. Industrial and academic partnerships promote a culture where people and ideas build a way of thinking that translates into a better way of doing. This paradigm is essential to transform investments and reforms into scalable innovation.
Preparedness for future warfare shows up in domain-specific announcements. A focus on developing High/Low capability mixes, with the integration of uncrewed and autonomous systems, will make both the Royal Air Force and the Royal Navy more agile and resilient. A ‘next-generation RAF’ will include an increased fleet, potentially with more F35 fighters, as well as investment up to £1 billion for Integrated Air and Missile Defence (IAMD). Increased carrier strike capabilities, as well as 11 new destroyers and frigates are proposed additions to a ‘New Hybrid Navy’. The SDR further suggests diversifying the capabilities of the naval forces through burden-sharing with Allies and commercial ventures. Similarly, in the space domain, capabilities could be developed both on a sovereign basis as well as with NATO and other key allies. The emphasis on High/Low capability mixes and uncrewed systems brings significant opportunities for our sectors to drive innovation and supply advanced technologies which can be adopted across different sectors. We are confident that dual-use and commercial ventures are a key part of addressing the growing need for adaptable and exportable solutions.
Cyber and digital capabilities are key parts of our sectors, and of the UK’s global industrial leadership. A new ‘CyberEM Command’ sitting within Strategic Command will coordinate defensive and offensive digital capabilities against hostile entities – investigating jamming, intercepting adversaries’ communications, and degrading their command-and-control systems. Investments of £1 billion in a “digital targeting web” will enable ground troops to access data from spy planes and satellites by 2027. Stronger cyber capabilities will respond to present cyber threats and attacks from hostile states, notably Russia. The recognition of the security sector’s contribution to homeland defence aligns with ADS’ call for cohesion across different Government sectors to safeguard national interests.
Likewise, the review takes home lessons from the war in Ukraine by focusing on airspace defence and autonomous systems. Drones are planned to make up a substantial proportion of platforms and consumables deployed against opponents on the battlefield. Taking lessons from Ukraine serves as an opportunity to recognise the critical role of the UK’s defence industrial base, which has successfully contributed to sustaining Ukrainian drone operations by achieving a tenfold increase in production and procurement of drones between 2024 and 2025. UK businesses have proved their ability to adapt, innovate, and deliver critical capabilities in response to evolving battlefield requirements.
UK in the world and at home
Per its own words, the SDR is founded upon a ‘NATO First’ policy but not a ‘NATO only’ policy. This means that the UK will prioritise stepping up its contribution to Euro-Atlantic Security. The commitment to innovation and capability development within NATO aligns with UK industry’s strengths in advanced technologies. The Indo-Pacific remains of crucial importance too, which is well exemplified by the commitment to expand the UK’s conventionally armed attack submarine fleet by building up to 12 new SSN-AUKUS boats, due to replace the seven Astute-class nuclear-powered submarines by the late 2030s. The publication also underlines the UK’s ongoing commitment to the UK-US Special Relationship, as well as the UK’s rapprochement with the EU through UK-EU Defence and Security Partnership. However, industry stakeholders will need clear guidance on priorities to ensure alignment across NATO, AUKUS, EU and other partnerships. Coherence in these relationships is essential for maximising the sector’s contribution to UK defence and security objectives.
The review is clear that the increasingly varied and complex threat landscape we face dictates a renewed focus on home defence and resilience and therefore cross-government collaboration. Revamped ‘Military Intelligence Services’ will be established to cohere currently fragmented intelligence capabilities and break down barriers between Defence and UK Intelligence Community (UKIC). Homeland air and missile defence will benefit from £1 billion investment. A new underwater surveillance programme, known as Atlantic Bastion and overseen by the Royal Navy, will guard against Russian sabotage of internet cables and energy pipelines. A voluntary gap year programme for young people to experience the military, along with establishing a civilian home guard to safeguard critical national infrastructure (CNI), will help increase public engagement with the importance of defence. We await more work on protecting CNI, not the least the forthcoming Cyber and Resilience Bill.
Importantly, a lot of the 62 recommendations set out a closer relationship between Government and industry. They provide a visible roadmap for bolstering the UK’s industrial base and strengthening regional clusters. Partnerships with industry are expected in a range of strategic areas, from advanced manufacturing to autonomy and cyber. But much of the SDR is dependent on huge uplifts in expenditure which are not clearly financed at present. Essentially, success will be measured from unlocked investment both from MOD and from private capital.
Defence spending is confirmed to rise to 2.5% of GDP by 2027, from 2.3% currently, which is welcomed news. Less encouraging, however, was the equivocation around an ‘ambition’ but not a commitment to raising defence spending to 3%. ADS supports a 3% target by 2030 and 3.5% by 2035 to address the urgency of existing threats and align with NATO’s anticipated target of 3.5% – which is expected to be agreed on during the NATO summit later this month. We also await the release of the ten-year Defence Investment Plan this autumn, which is set to replace the previous Defence Equipment Plans. Because this plan is critical for outlining detailed spending commitments and clear timelines, it needs the input of industry. Without clear commitment on budget targets and clear financing solutions, it will be challenging for the UK industrial base to sustain the level of readiness it has been building over the past two to three years.
Conclusion
Industry welcomes the intent, dedication and long-term security that the Strategic Defence Review brings. It convincingly explains the prerogatives of an ‘always-on’ approach to defence abroad and at home. The SDR calls to tackle the thickets of regulations by reducing the burden of defence standards and conditions by 50%, amending single source contract regulations, reforming intellectual property (IP) handling, and improving security vetting processes – issues we have consistently described before. The decision to transition UKDSE into the MOD as a new “Defence Exports Office” should signal streamlined support for UK defence exports. We will actively engage to ensure this delivers measurable benefits for industry.
ADS looks forward to the publication of the Defence Industrial Strategy (DIS), Industrial Strategy, Spending Review, and National Security Strategy (NSS), all in June 2025 as far as we understand. The vision of the SDR, not the least the focus on fostering industrial partnerships and reducing regulatory burdens, directly reflects ADS’ views. Some of the announcements will take time to show their worth but industry stands ready to respond to the challenge. Together, we can ensure the UK remains safe and prosperous.
