The government is exploring new ways to bring private investment into the defence sector, as part of efforts to strengthen military capability and support economic growth.
The initiative was discussed at a meeting between John Healey and Rachel Reeves with senior figures from banking, venture capital and finance.
Officials said the aim is to identify how private capital could help accelerate innovation, improve readiness and create jobs across the UK defence industry.
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As part of the work, the Ministry of Defence will lead a focused “sprint” to examine investment opportunities, supported by HM Treasury and UK Government Investments. The exercise will consider how funding could be directed into key areas such as technology development and infrastructure.
The government also confirmed that the Defence Investors’ Advisory Group, which brings together industry and financial leaders, will be placed on a permanent footing to strengthen collaboration between defence and the private sector.
A new secondment programme will see finance and industry specialists work within the Ministry of Defence, with the aim of bringing private sector expertise into government decision-making.
Healey said the approach reflects the link between national security and economic strength, adding that closer partnerships with investors could help deliver both defence capability and growth.
Reeves said the government is looking at how private sector expertise can complement public investment, while maintaining value for money for taxpayers.
The plans build on recent initiatives aimed at encouraging investment in defence, including engagement with venture capital firms and funding programmes for smaller companies developing new technologies.
The work comes alongside a broader increase in defence spending, with the government committed to raising expenditure to 2.6% of GDP from 2027.
