Question
To ask the Secretary of State for Defence, whether his Department is taking steps to increase the proportion of MOD expenditure spent directly with SMEs in Wales.
Answer
Defence has committed to increasing spending with SMEs by an additional £2.5 billion by 2028 and we want Welsh SMEs to benefit fairly from rising defence investment. The Department is taking a range of support measures to boost SME participation in defence procurement in Wales and across the UK. These include establishing the Defence Office for Small Business Growth (DOSBG) to provide dedicated support to SMEs, improving guidance and engagement with Defence, simplifying processes, and developing a comprehensive SME Action Plan to address barriers to entry and growth. Wales has also secured one of Defence’s five initial Growth Deals. Officially announced on 19 February 2026 at Cardiff Castle, a £50 million MOD investment has been awarded. It is intended to make Wales a stronger centre for autonomous and uncrewed defence systems, while creating skilled jobs, increasing SME participation and strengthening sovereign UK supply chains.11% vibes
Verdict: GREEN (80/100)
The reply addresses the question directly, setting out concrete measures to increase spending with small and medium-sized businesses. These include a £2.5 billion additional SME commitment by 2028, a Defence Office for Small Business Growth, simplified guidance and processes, and an SME Action Plan. It also points to a £50 million Growth Deal announced for Wales, linked to increasing SME participation. Most of the measures apply across the UK rather than to Wales specifically, but the Welsh element is covered, so a reader would have enough specific information to move on.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| What the Ministry of Defence is doing to increase the proportion of its expenditure spent directly with small and medium-sized enterprises (SMEs) in Wales. | Addressed | Direct | The reply names concrete measures to increase SME spending, including the £2.5 billion additional SME commitment by 2028, the Defence Office for Small Business Growth, simplified guidance and processes, and an SME Action Plan. It also gives a Wales-specific mechanism, the £50 million Growth Deal announced at Cardiff Castle, which is explicitly linked to increasing SME participation. The £2.5 billion figure and the support measures are UK-wide rather than Wales-specific, which keeps this from being a perfect fit, but the Welsh Growth Deal covers the Wales element directly. |