Spring Statement 2025 – 10 key policy wins for ADS & our sectors

Key policy wins for ADS and our sectors within the Spring Statement:

1. Increasing the defence budget by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget

2.  Increase takes spending on defence to 2.36% in 2025/6 and is the first step to spending 2.5% of GDP on defence by 2027

3.  New UK Defence Innovation (UKDI) unit to deliver cutting-edge technology to UK Armed Forces

4.  10% minimum ringfenced for equipment spending on emerging technologies

5.  £2 billion increase in UK Export Finance (UKEF) direct lending for defence exports, to reach £10 billion

6.  £3.25 billion transformation fund to support the reform of public services and seize the opportunity of digital technology & artificial intelligence (AI)

7.  £8 million for new technology to support the management of offenders in the community

8.  Creation of bespoke procurement processes for different types of military equipment

9.  25% reduction in regulatory compliance costs to business through the Regulation Action Plan

10.  The Chancellor and Defence Secretary will co-chair a new Defence Growth Board

Kevin Craven, ADS Chief Executive, on the defence spending uplifts:

“Today’s funding package marks a significant step by the government, and its scope is a welcome relief for not only our sector but also for our nation, allies and international positioning. Simplifying routes to entry – and the formalisation of UK Defence Innovation (UKDI) – are just one way that government has listened to the repeated needs of the UK defence industry. ADS remains clear that government investment that focusses on delivering a long-term demand signal to our industry, as well as developing the deterrence capability we can supply, will allow the UK’s innovative defence industry to deliver the military capacity we need for our security in the face of current threats. Businesses large and small stand ready to support government in this mission and play a vital part in the UK growth agenda while remaining a strategic partner in delivering national security.

On behalf of almost 1500 businesses throughout the UK, ADS looks forward to working with government to realise the potential of the measures announced in today’s statement and allow industry to do what it does best: innovate to secure UK advantage in an increasingly competitive and unstable geopolitical environment.”