SMEs to receive support from Northern Ireland defence growth deal

The UK has unveiled a GBP50 million defence funding deal for Northern Ireland to support local SMEs in the region.  

Announced by the Ministry of Defence (MoD) on 22 April, the funding will support the creation of a Secure Innovation Hub, designed to help SMEs collaborate with one another and prime contractors. 

The facility will provide a secure R&D space for new businesses and startups. The MoD says this will help to create “a level playing field with major defence firms”. 

The funding will also support targeted measures that make it easier for Northern Irish SMEs and startups to enter the defence supply chain. The deal will place particular emphasis on supporting companies developing dual‑use technology with both military and civilian applications. 

According to the MoD, Northern Ireland currently benefits from more than GBP270 million per year in defence spending with industry. 

The region is home to many SMEs as well as several key prime contractors. Navantia UK manages Harland and Wolff’s shipyard in Belfast, which is responsible for the construction of Fleet Solid Support vessels for the Royal Fleet Auxiliary. 

Defence prime Thales also operates a factory in Belfast, which last year secured a GBP1.6 billion contract to supply 5,000 lightweight multi‑role air defence missiles to Ukraine. 

Alongside the GBP50 million investment, the UK Government said it will provide additional funding for a skills initiative in Northern Ireland. The MoD plans to work with local industry and educational institutions to develop defence‑related skills, including engineering and technology. 

“With this deal, Northern Ireland businesses are receiving a vote of confidence that will help them secure bigger and better contracts,” Northern Ireland Office Minister Matthew Patrick said.  

The deals form part of a GBP250 million programme announced in June 2025 to support five regions across the UK. Four deals have been agreed this year so far, including funding packages for South Yorkshire and Plymouth, with Wales yet to be announced.