Strategic Defence Review: a defining moment for UK defence and industry
Tommy Ayouty, Vice President (Sales and Accounts)
| Thales UK
The UK’s defence strategy must evolve to meet modern threats. The Strategic Defence Review provides an opportunity to strengthen national security, drive innovation, and ensure the resilience of our defence industry through collaboration and investment
The UK has an opportunity to position itself as a leader of European security. As threats evolve – from advanced missile systems to AI-driven warfare – our defence strategy must adapt. The outcome of the Strategic Defence Review (SDR) must ensure UK defence is focused, resilient, and built for long-term success.
If we are to have the stability for resilience and security, defence must be recognised as a national priority – not just in government policy but in public consciousness. The newly established Defence Growth Board, co-chaired by the Chancellor and Secretary of State for Defence, underscores the sector’s national significance, supporting high-skilled jobs and technological progress. The Prime Minister’s call for a ‘generational response’ highlights the need to attract talent and accelerate the transfer of commercial innovation into defence.
This must start with the government providing a clearer definition of sovereign capabilities – technologies the UK must control – and capabilities in which it can rely upon its allies for. This will enable the UK to rapidly meet not only its own security needs but also Europe’s and NATO’s, as well as the ability to develop new solutions to face rapidly evolving threats.
An example of this would be making Integrated Air and Missile Defence (IAMD) one of its key priorities. The growing use of drones, ballistic and hypersonic missiles demands a multi-layered air defence, integrating sensors, weapons and command systems to protect the UK and its allies at home and abroad. Achieving this requires shifting from rigid procurement cycles to an agile, outcome-driven model that accelerates capability development as well as international cooperation.
The Lancaster House Treaty with France provides a strong foundation for joint capability benefit in areas such as IAMD and maritime security. Strengthening these partnerships will enhance interoperability, reduce duplication, and reinforce collective defence. In addition, a more directed approach to exports, leveraging UK Export Finance and the Ministry of Defence to strengthen our international partnerships and drive industrial growth ensuring a return on investment for the UK.
AI and autonomous systems will shape future conflicts. From AI-driven threat detection to autonomous platforms reducing risk to personnel, these technologies must be embedded across defence. The Spring Budget’s commitment to allocate 10 per cent of defence spending to disruptive technologies is a step forward, but real impact will depend on the success of the Defence Growth Board with all industrial players included.
Investing in munitions stockpiles remains a key priority; however, maintaining production necessitates a robust industrial base and long-term contracts. This, combined with resilience tax credits can encourage private sector investment. To further enhance capability delivery, procurement reforms, such as the segmented approach introduced in the Spring Statement, are essential. For the UK to remain competitive, resilient, and ready for the future, the SDR must provide clarity on sovereign priorities, a more agile procurement model, and a stronger, more collaborative defence enterprise. With the right vision and execution, the UK can reinforce its position as a global leader in defence and security.
