Defence Procurement: SMEs

Defence – in the House of Commons at 2:33 pm on 3 November 2025.

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Photo of Sonia Kumar Sonia Kumar Labour, Dudley 2:33, 3 November 2025

What assessment he has made of the adequacy of the level of direct procurement from defence SMEs in the west midlands.

Photo of Luke Pollard Luke Pollard The Minister of State, Ministry of Defence

The role of west midlands SMEs in support of our armed forces is vital for our national security. The Ministry of Defence has just published our regional breakdown of defence spending in the west midlands, where we spend £1.7 billion. That is the highest on record, supporting 7,900 jobs, but it is not enough. We will spend an additional £2.5 billion extra with SMEs by 2028, helping to reinforce that defence can be an engine for growth.

Photo of Sonia Kumar Sonia Kumar Labour, Dudley

In Dudley, we have the Pensnett estate, one of the largest industrial estates in Europe. It is home to nearly 200 businesses, including a variety of SMEs, ranging from plumbing to steelworks. What steps is my right hon. Friend taking to ensure that SMEs in Dudley have the time and the space to bid for contracts? Will the Minister agree to hold a roundtable on defence on the Pensnett estate?

Photo of Luke Pollard Luke Pollard The Minister of State, Ministry of Defence

I am grateful for the time that my hon. Friend spent talking to me about SME potential in Dudley and across the west midlands last week. There is a huge opportunity to direct more of the increasing defence budget at British firms, and in particular SMEs. There is huge potential with the skills base in the west midlands. I would be happy to take my hon. Friend up on her offer of visiting Dudley and getting those businesses more involved in the defence supply chain.

Photo of Gavin Williamson Gavin Williamson Conservative, Stone, Great Wyrley and Penkridge

The Minister has heard what an amazing set of mid-sized and large businesses we have in the west midlands supporting defence, but we also have some amazing research universities. What more is the MOD looking at doing to work more closely with our universities, getting them geared towards supporting our move to rearming this country?

Photo of Luke Pollard Luke Pollard The Minister of State, Ministry of Defence

I am grateful to the right hon. Gentleman for raising the important role that universities play. In the defence industrial strategy, published a few months ago, we set out our ambition to create a defence universities alliance, bringing together the very best cutting-edge research that is being done in our universities. We are working with Universities UK to put that together, and there will be further announcements in short order, but I hope that the universities on the right hon. Gentleman’s patch will participate so that we can grow our economy and keep our nation safe.

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