The UK is introducing new requirements for overseas companies awarded defence contracts. They will have to bring benefits back to Britain through jobs and apprenticeships, factories, investment in domestic suppliers and technology transfers. The policy will apply to selected procurements from April 2027.
Contracts worth more than £50 million will be considered for the requirements. The benefits delivered could be worth up to the value of the contract. For example, a £100 million contract could lead to jobs, facilities or training worth up to £100 million in the UK.
The government says it will prioritise buying British defence equipment wherever possible. When it has to buy overseas, the new approach is intended to ensure British workers and businesses still benefit. A new central Offset Authority will agree, value and monitor commitments.
