‘By 2035 the UK will be a leading tech-enabled defence power, with an Integrated Force that deters, fights and wins through constant innovation at wartime pace’ – this is the core vision of the UK’s Strategic Defence Review (SDR) 2025.
It was easy enough for us to write this single sentence, but it encapsulates a radical strategic shift in how the UK must organize to find, buy and use technology. It will be hard work to execute, but success is urgent – for the UK’s ability to deter adversaries, strengthen its industrial base, and to win if required to fight.
Why that vision?
The SDR acknowledges that the international order is being reshaped. Russia’s war in Ukraine continues, but the US wants to focus on the Indo-Pacific region and at home. The UK and its European partners are rightly taking on more responsibility for their own defence as a result. Meanwhile China is vastly increasing production of advanced weapons systems, combining AI, drones, and maritime assets designed for saturation and surprise. Additionally, the UK is dealing with daily attacks against its infrastructure and economy in the grey zone of cyberspace. Taken together, it is clear that the threats faced by the UK are proximate, and in many respects already here.
Ukraine has vividly demonstrated that the battlefield is no longer just kinetic – it’s cognitive, autonomous, and contested in milliseconds. The war has shifted the locus of defence innovation from well-established prime contractors to agile startups, who can rapidly respond to the pace of battlefield developments. This is happening at a time when advances in AI, quantum, and biotech are progressing at dizzying speed.
UK defence is not currently set up to face the challenges of this new era. Procurement takes an average of 6.5 years for projects with a value of more than £20 million.
The result is that the UK has a narrow base of large suppliers who have the balance sheet to survive the procurement cycle. Digital capabilities have been de-prioritized to fund other long-running equipment programmes. Put simply, the UK has raided the future to pay for the past. This cannot continue, as the Defence Secretary John Healey has made clear.
The Review therefore places innovation and pace at the heart of its vision. To deter, fight and win requires an ability to endure both above and below the threshold of war. As well as ships, tanks and planes, communications and digital networks must be able to survive and decide under fire.
The creation of a Digital Targeting Web will enhance the UK armed forces’ ability to sense, operate and decide across domains – in the field as well as in headquarters. It will also force pace into the work to upgrade the UK’s digital foundations, from the Cloud to AI. The SDR calls for a significant upgrade to cyber capabilities and better protection for the UK’s Critical National Infrastructure (CNI).
NATO Allies must also be able to fight together more easily. From software to supply chain, the Review argues for interoperability by default. This means open software standards, simple architectures, and an end to over-specification. Threaded through all of this is the concept of tempo dominance – the simple maxim that the side that learns and adapts fastest, wins.
Realizing the vision
Translating this into practice requires changing how the UK finds, buys and uses capability in a constant innovation cycle. The government’s commitments to increased defence spending are welcome, but as the defence secretary has acknowledged, how we spend the money is as important as the overall number.
The UK must stimulate a deeper and broader pool of potential suppliers as part of a renewed partnership with the private sector. Critical to that aim is the decision to ringfence 10 per cent of the equipment budget for novel technologies: for the first time, a defence review is providing formal protection for tomorrow’s needs.
This money must flow via contracts as revenue to a wider pool of companies, complementing large manufacturers with the younger and more agile technology providers who have been critical to Ukraine’s war fighting. This should be the core function of the new UK Defence Innovation organization the Review proposes.