As Sarsen Technology and HIPER Global joined the UK’s defence community at DPRTE in Farnborough last month, Laura B sat in the keynote speech, and the atmosphere could only be described as urgent. In a landmark speech, Luke Pollard MP, Minister for Defence Readiness and Industry, outlined a future where the UK defence industry isn’t just a protector of the realm, but an "engine for growth" for the entire economy.
For those of us in the UK’s SME community, 2026 is going to mark a strategic pivot. It’s taken almost a year, but with the Strategic Defence Review (SDR) now being implemented through the Defence Investment Plan (DIP), the industry has moved from speculation to execution.
The government’s stated ambition is "warfighting readiness" - the ability to deter and, if necessary, defeat peer adversaries. During the speech, Pollard noted, "You can't fly a Typhoon without the parts, the ingenuity and the innovation", all provided by the supply chain. This mandate has translated into a tangible financial commitment: an extra £5 billion in the defence budget this year alone.
For SMEs like us, and those who visited our stand, this funding isn’t just about larger contracts; more importantly, it’s about faster ones. The appointment of a National Armaments Director is designed to strip away "stupid rules" and cut contracting times, ensuring that cutting-edge tech, from autonomous naval drones to AI-driven C5ISR, reaches the front line in months, not decades.
Perhaps the most significant takeaway for the DPRTE audience was the government’s "Backing British" agenda. The figures are incredible: since the last general election, 86% of the 1,200 signed contracts have gone to British companies. The goal is even bolder: a 50% increase in direct MOD spend with SMEs by May 2028. Sovereign capability has never been more important.
The launch of the Defence Office for Small Business Growth represents a "one-stop shop" designed to break down barriers that have historically kept smaller, more agile innovators out of major programs. Initiatives like the AWS UK SME Vanguard program, which provides cloud credits to digitise manufacturing, show that the MOD is finally investing in the digital infrastructure of its smallest partners.
At the Sarsen and HIPER Global stand, we saw this "team sport" mentality in action. Our GVA battlefield management demo from Astute Systems resonated because it sits at the intersection of this new funding and the SDR’s priorities: autonomy, AI, and productive decision-making.
The release of funding in 2026 is supporting "big bets" on autonomy in the maritime and air domains. Whether it’s Kraken’s uncrewed surface vessels or the project Nightfall ballistic missile co-development, the UK is looking for the "defence unicorns" of tomorrow.
As we look back on DPRTE 2026, the takeaway for the supply chain is cautious optimism, backed by hard capital. The SDR has provided the roadmap, and the 2026 funding has provided the fuel. For UK SMEs, the message is simple: the door is open, the funding is flowing and mission-critical warfighting readiness enabled by British innovation has never been more vital.
For more information about how Sarsen and HIPER Global UK can provide both sovereign capability and cutting-edge technology for your application, please
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