Defence Minister Lord Coaker, keynote speech at Enterprise Gateway, Farnborough International Airshow

The Enterprise Gateway: Opening Address

Thank you very much everyone, and good morning. Just the day after our new Prime Minister entered Downing Street and spoke of our commitments to honour, our commitments to strengthen in defence. It’s a great pleasure to join all of you here today to help launch the first ever Enterprise Gateway, the second largest air show in the world, with three packed days of discussions, workshops and valuable advice ahead.

The week is a fantastic way to learn how our UK defence is changing to meet a new era of threats, and how you and your businesses can take part in a hugely important national endeavour.

At a time of rising international volatility, when the government is rapidly increasing defence spending, some of the most transformative ideas in aerospace come from smaller, agile businesses that can drive innovation at speed. So, the Enterprise Gateway is all about seizing the huge opportunities on offer and unleashing the potential of small SMEs and start-ups within this vibrant sector of the market.

To understand what’s really happening in the aerospace supply chain, can I reflect on the wider context? The government inherited a defence programme that needed more investment and a new vision to meet the challenges of a new era. The supply chain procurement system was not quick enough and needed urgent change to adapt to this new era, with many smaller businesses trying to navigate and enter the defence industry supply chain, which was suffering. Despite the conflict in Ukraine manifesting change in the way modern wars are fought, we were still investing in many of the technologies designed for an older era of warfare.

But that was July 2024. Since then, we’ve set the blueprint for a completely different type of military. We published our Strategic Defence Review, Defence Industrial Strategy, Defence Diplomacy Strategy, and most recently the Defence Investment Plan — to build a resilient, lethal and warfighting-ready military, alongside our allies and friends in NATO, Europe and beyond.

Within this comprehensive new vision for defence, three aspects in particular are relevant to this week’s Enterprise Gateway.

Firstly, the significant increases in defence spending. The new DIP commits £298 billion for our Armed Forces over the next four years. This means UK defence spending is rising at the fastest rate since the end of the Cold War, the MOD’s budget is growing more than any other government department this year. And a considerable part of that money — £31 billion — has been earmarked for air and space.

Second, we’re modernising our military with cutting-edge technology across all domains. The £31 billion investment will help create a hybrid, digitally ready and AI-enabled Air Force, bringing together commands within our new integrated airspace and missile defence sensor. The programme will deliver three gold-standard combat air platforms: Typhoon, F-35 and Tempest. Also, £5bn will be injected into drones and autonomous capabilities, including uncrewed fighter aircraft, to make the RAF Europe’s first sixth-generation air force.

And third, acknowledging that our frontline forces rely entirely on the supply networks behind them, we’re reforming and transforming our relationship with industry, bringing suppliers — particularly SMEs — much closer into defence. We want to harness the incredible industrial resources this country possesses, to fire up creative minds. A mobilised supply chain as a fundamental enabler of everything that we want to achieve together. Industry will not and cannot no longer be treated as a separate entity. It’s a trusted partner in deterrence, as well as being one of the most potent engines for economic growth across our whole nation.

Ukraine showed the way forward in so many ways, particularly in how it has revolutionised the relationship between states, military and industry, and how it innovates at lightning speed.

We are learning those lessons. In particular, by making SMEs much more central to our mission. Government is increasing spending with SMEs and expanding their role within the defence industrial base. We’ve also simplified structures at the MOD, establishing the NAD Group under a new National Armament Director to speed up decision-making, overhaul procurement, and get rid of the barriers that prevent SMEs from accessing defence — something which is crucial. We’ve established the Defence Office for Small Business Growth to deliver a 50% increase in spending with small and medium-sized firms. And we’ve launched a £182 million skills package helping industry attract, develop, and retain a highly capable workforce, critical to the growth of the sector. And we’ve established the Defence Industrial Joint Council, a senior strategic forum to boost engagement with suppliers.

And here is the most important point. We can’t deliver our security commitments without you. We need the brains, the risk-taking and the command of these new technologies to keep Britain safe. That’s why you have to be, and we want you to be, an integral part of UK defence — to help us move forward, both further, and to move forward faster, to become smarter and to become stronger.

Because this is the crucial point, absolutely fundamental: our strength lies not just in our fighting power — obviously important and as crucial as it is — but in our industrial power too. Investment, growth, jobs and prosperity.

And this week is all about trying to grasp that opportunity. It’s an exceptional three days, giving you the tools and support to move your businesses forward, explaining how to approach international markets and exports, regulations, legal issues and AI, among many other topics. Bringing like-minded people such as you in this room, and everyone across the whole of the Farnborough Airshow, bringing like-minded people together to help us to become more fighting-ready.

So can I thank all of you, thank all of those who have worked so hard to arrange this week’s Enterprise Gateway, and can I thank you all for showing interest and for taking part. And finally can I wish all of you an enlightening and enjoyable three days.

Remember what I said — which was the most important part: warfighting power, of course, is absolutely fundamental. But supporting that with industrial power and a strong industrial base, both the big companies but also unleashing the small and medium-sized enterprises to deliver, is absolutely fundamental and crucial as well.

And what an advert for our country the Farnborough Airshow is as well just as an aside. Just when I drove in, came in this morning to see the Farnborough Airshow, to see all of the international partners, all of the international businesses, all of the people coming together — so many nationalities — it made me actually very proud of the UK and very proud of what we’re trying to achieve together. Many challenges ahead. But it’s good to be amongst people trying to meet those challenges and to move forward for the future.

Thank you very much indeed for your attendance and your attention. I appreciate it. Thank you very much.

From: Ministry of Defence and Lord Coaker