Make UK, Lloyds Bank launch defence SME guide

Make UK Defence has partnered with Lloyds Bank to launch a new guide aimed at helping SMEs and non-traditional suppliers enter and compete in the UK defence sector. 

The publication, A Practical Guide to Working in Defence, published on 24 March, builds on Make UK Defence’s existing Fit for Defence programme, which had previously been limited to members.  

The new guide is designed to broaden access and provide early-stage support to companies exploring defence opportunities. 

Andrew Kinniburgh, Director General of Make UK Defence, told DSEI Gateway at the DPRTE event in Farnborough that the initiative reflects a deliberate effort to open the sector to a wider pool of businesses. 

The document sets out the “building blocks” required to become a credible supplier, including guidance on procurement pathways, compliance, and strategic positioning.

Key goals

“We wanted to broaden the Fit for Defence programme and be able to support other companies that weren't necessarily members or may be early in their thinking about defence,” he added. 

“So non-traditional defence companies, ones that perhaps have dipped their toe in the water but haven't really got involved in a great detail.” 

Sponsored by Lloyds Bank, the guide also signals what Kinniburgh described as a “notable shift” in financial sector engagement with defence. 

“That tells its own story in terms of a high street bank beginning to stick its head above the parapet and beginning to engage meaningfully with the defence industry,” he said.  

“Banks have been a bit shy about engaging on defence. So, we're pleased they’re doing it.” 

Hurdles and opportunities

The launch comes amid growing policy and industry focus on increasing SME participation in defence. According to Kinniburgh, there is a “firm commitment” from the Ministry of Defence (MoD) to increase spending with SMEs by 50%, both directly and through prime contractors, though questions remain over how this will be measured. 

“At the moment, the primes will not publish their SME spend. We are challenging that because we'd like to see that happen,” he said. 

Despite current challenges, recent conflicts, particularly in Ukraine, have underlined the strategic value of SMEs, especially their ability to innovate rapidly. 

This agility is reshaping perceptions of the defence industrial base, with SMEs increasingly viewed as critical to delivering innovation alongside larger prime contractors. 

“It’s a very dynamic environment. The SMEs are bringing incredible pace, agility and innovation. What we would like to see is a much greater proportion of MoD spend going to those SMEs.”