The Defence Investment Plan marks a crucial milestone for British defence. Putting an extra £15 billion into defence is a strong start to meeting the target of reaching 3% of GDP in the next Parliament. It provides much needed clarity. But, importantly, the DIP also made clear the Government’s commitment to learn the lessons from Ukraine and the Middle East, transforming the armed forces for the modern battlefield.
Make no mistake. We are living in a prewar world. Russia could attack a NATO ally in the next four years. But it has been over a year since the Strategic Defence Review embraced an ambitious plan to transform the armed forces.The SDR, and the Defence Industrial Strategy which followed, put autonomous weapons, sovereign capability, and British tech companies at the heart of British defence. Publishing the DIP is important. But we cannot just think about headline numbers. How this money is spent matters.
Having a seat on the Defence Industrial Joint Council, representing a leading British tech company, the challenges ahead are very clear. Industry and government must keep working together to put the best tech in the hands of our warfighters. Much of this tech is sovereign thanks to Britain having some of the best universities and tech companies in the world.
Warfare is being transformed by digital technology. Ukraine obviously comes to mind. Drones fundamentally changed the character of the modern battlefield. But Operation Epic Fury also has big lessons for us. The US used Maven Smart System’s AI tools to deliver rapid precision strikes against Iranian targets with huge military success.
Britain does not have capabilities like this yet. We will only get it by investing in digital technology today. Hadean is playing its part by leading the SCEPTRE coalition of British startups to build a fully-sovereign Digital Targeting Web. This will help warfighters on the battlefield to make faster and better decisions, outthinking the enemy at a time when warfare moves more quickly than ever before.
The DIP has rightly focused on building this kind of digital capabilities underpinned by AI. More drones and new hardware are being ordered with more money for digital technology. But it is software that enables operators to use capabilities to their full effect and increase the speed at which decisions are made. Our warfighters need battle-ready digital integration to deliver a much more lethal force.
We have some of the world’s best talent. Investors regularly put their money into British startups. This is a great place to start a tech company – especially in software – but we need to make it the best place to grow one too. Right now, we are losing them to the US and elsewhere to find new opportunities. Publishing the DIP and ending the uncertainty marks an important milestone on this journey. This is an ongoing conversation that must continue.
If we want better digital capability then Britain must award contracts to British tech companies. Startup philanthropy has been going on for long enough. Free trials and experiments help demonstrate new capabilities. But, in the past, they have not always been met with the funding and timelines needed to sustain growth. Britain needs a funded, structured plan to build sovereign capability. That is how neoprimes like Anduril and Palantir got started in the US, or Helsing in Germany. Government revenue helped them through their critical growth stage.
There also needs to be a conscious decision to prioritise digital technology. Ministers signed off £1 billion for a helicopter contract with Leonardo to save jobs in the South West. Imagine what this level of funding could do to help create new British tech unicorns instead. This would create more jobs, growth, and investment across Britain.
It is also critically important that money from the DIP moves as quickly as possible. No more time can be wasted. Money must move quickly and procurement cycles shortened, putting the latest software into the hands of our warfighters.
We can see our adversaries preparing for war. Russia learned the hard way how the modern battlefield has changed. Britain has a lot of catching up to do. But it can be done. British tech companies, like Hadean, stand ready to help the Government to deliver the defence revolution we need. Building digital capability with British talent is the best way to deliver the advantage we need to deter our adversaries and protect the nation.