The UK Government has said it intends to boost foreign investment in the defence industrial base while ensuring that national security risks are properly managed.
Responding to a parliamentary question from Labour MP Callum Anderson, Minister of State for Defence Maria Eagle stated that “the UK’s defence industry plays a vital role not only in our national security but also to the economic prosperity and growth of the UK.”
She highlighted the government’s ambition to “boost investment in our defence industry, including from overseas” and outlined how the Defence Industrial Strategy will align security and economic priorities to “boost the prosperity of our people across the country, provide resilience for the UK, and ensure the credibility of our deterrence.”
The minister also referenced the Prime Minister’s defence investment announcement on 25 February 2025, which aims to “protect UK citizens from threats and create a secure and stable environment in which businesses of all sizes can thrive.”
The Defence Industrial Strategy will also explore ways to encourage more private sector investment in the UK’s defence sector, with a particular focus on “maximising opportunities of dual-use technology and sectors to bring in investment that supports the broader industrial strategy as well as benefiting Defence.”
However, Eagle acknowledged the potential risks associated with foreign investment, stating that while it presents opportunities, it can also bring security challenges. She noted that “the National Security and Investment Act is part of a robust system for scrutinising and where necessary intervening to protect national security, while providing businesses and investors with the certainty and transparency they need to do business in the UK.”
With the UK defence sector facing global competition, the government say that it aims to strike a balance between economic growth and national security—welcoming investment while ensuring that critical capabilities remain safeguarded.
