Business issues

Defence

Defending the UK and its interests is crucial, and government and business must work together to give the armed forces the equipment they need at a price taxpayers can afford

The UK's servicemen and women do a tough and vital job and need good equipment to help them defend the UK and its interests. But the process of getting the equipment and support they need - when they need it, at a price which provides good value for taxpayers - could be further improved. The UK's defence spending commitments exceed forecast budgets over a ten-year period by £36bn. This is not sustainable.

A growing defence industry is an important contributor to the UK economy. The UK defence industry is worth an estimated £35bn, makes up 10% of UK manufacturing, and employs over 300,000 people. There are more SMEs operating in the UK's defence manufacturing sector than France, Italy, Germany, and Spain combined, and Britain is currently the world's second largest defence exporter.

The CBI supports the Ministry of Defence's efforts to get maximum value for each pound spent, and business wants to work closely with government to meet the capability challenges outlined in the government's Strategic Defence and Security Review.