Commons Sense

House of Commons · Ministers' Questions

Defence Procurement: SMEs

Monday 30 June 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Luke Murphy asked about steps to support SMEs in defence procurement, highlighting issues faced by local firms.
  • Maria Eagle responded that procurement rules allow specifying national security grounds and noted existing sole-source contracts.
  • Maria Eagle agreed to meet with Luke Murphy and local SMEs to discuss new procurement models.

Topics (select to filter)

Questions & Answers

Q1 Luke Murphy Lab Basingstoke
Defence Business & Trade
Context

The MP is concerned about the ability of UK defence SMEs to compete in Government procurement processes, especially regarding UK sovereign technology and sole-source contracts.

Question

Luke Murphy asked what steps his Department plans to take to support SMEs through the defence industrial strategy. He highlighted specific issues faced by local firms such as Nightball Technologies and Bertin Exensor, noting that procurement agencies cannot specify UK sovereign tech or use sole-source contracts where UK capabilities exist, leading to lengthy competitive tenders and potential foreign supplier purchases.

Answer from The Minister for Defence Procurement and Industry (Maria Eagle)

Maria Eagle responded that there is flexibility under procurement rules to specify national security grounds and noted half the MOD spend already occurs through sole-source contracts. She agreed to meet with Luke Murphy and local SMEs, highlighting new procurement models being easier for small firms and an SME hub engaging directly with them.

Partly answered
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Q2 Sadik Al-Hassan Lab North Somerset
Defence Business & Trade
Context

The MP is concerned about financial institutions' interactions with local SMEs involved in rearmament efforts, citing a specific case of 1415 Industries being blocked from opening a business bank account.

Question

Sadik Al-Hassan asked what steps the Minister will take to ensure that SMEs can participate in defence procurement contracts. He highlighted the financial difficulties faced by one company, 1415 Industries, which was denied a business bank account, impacting its seed funding and contract bidding capabilities.

Answer from The Minister for Defence Procurement and Industry (Maria Eagle)

Maria Eagle recognised the point, agreeing to meet with Sadik Al-Hassan and local SMEs. She mentioned ongoing discussions between industry and finance stakeholders and the commitment in the strategic defence review to develop a dedicated financial services sector strategy by spring 2026.

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