The new SME hub should help enhance the MoD's capacity to find and utilise innovative technology.

The UK will launch a new hub for small and medium-sized enterprises (SMEs) to improve their integration in the defence supply chain and bolster the domestic industrial base.

New SME spending targets will also be set by the UK Ministry of Defence (MoD) by June to ensure these companies benefit from the recently announced 2.5% defence budget increase, the MoD announced on 3 March.

The MoD plans to work with industry, including those outside the traditional defence sector, to ensure the hub operates effectively and meets industry's needs, DSEI understands from the MoD. The hub will be managed directly by the MoD, making use of existing and new expertise and will operate across the UK. 

Further details on the specific steps the MoD will take to achieve the SME spend target will be set out in the updated SME Action Plan, which will be released after the new Defence Industrial Strategy is published, the MoD added to DSEI.

A new UK SME hub is a step in the right direction as these companies often struggle to penetrate the defence industry, despite developing some of the most innovative technology.

Only 5% of the MoD procurement budget is currently allocated towards SMEs, the Liberal Democrat spokesperson for defence, Helen Maguire MP, highlighted in January.

This is “simply not good enough and we can do better”, she added. 

What form this hub will take, whether a physical location or a digital platform is yet to be seen. Keep an eye out for the SME Action Plan and Defence Industrial Strategy due to be published in the Spring.