Defence News – Early August 2025
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The UK Government has pledged to boost spending with small and medium-sized enterprises (SMEs) by £2.5bn over the next three years, in a move aimed at strengthening national security and supporting economic growth — with Scottish firms set to benefit significantly.
The announcement came during a defence roundtable at Edinburgh’s Queen Elizabeth House, chaired by Defence Minister Lord Coaker following his visit to the Edinburgh Royal Military Tattoo. Representatives from eight innovative companies, spanning Stirling to Forfar, attended the meeting to share how their work is helping keep the UK safe.
Ministry of Defence-owned Sheffield Forgemasters has seen its recapitalisation plan increased from £900 million to £1.3 billion to increase capacity for defence manufacture.
Under the Government’s announced increase in defence spend, the infrastructure at Sheffield Forgemasters has been challenged to meet additional demand for its unique output, with greater resilience, faster production, and reduced lead times.
The company supports UK sovereign production of nuclear submarine and warhead programmes through BAE Systems, Rolls-Royce Submarines Limited, Babcock International and the UK’s Atomic Weapons Establishment.
